MRX Metalrax Group

    RNS Number : 8318K
  Metalrax Group PLC
  29 December 2008
   

    
    RNS Announcement
    29 December 2008
    Metalrax Group PLC ("Metalrax" or "the Group")

    Disposal of Welland Engineering Supplies 
    Metalrax, the niche supplier of specialist engineering and consumer durable products, is pleased to announce the sale of its Welland
Engineering Supplies business ("Welland") for a cash consideration of approximately �0.3 million, which is payable in instalments over the
period ending 30 June 2009. 
    Welland stocks and distributes to the mainstream construction and automotive sectors an extensive range of tools and accessories. 
    Welland is being sold to a new company, Welland Supplies Limited, which has been formed by the business' management for the purposes of
this acquisition. 
    In the year ending 31 December 2008, based on unaudited numbers, Welland is anticipated to make an   operating profit before exceptional
items and tax of approximately �0.1 million on turnover of approximately �1.8 million. As at 31 December 2008, the net assets being sold are
expected to have a book value of approximately �0.5 million. 

    The Directors intend to use the proceeds of the sale to reduce debt and to support the Group's strategy of becoming a specialist
engineering company operating in growth market sectors.

     Andrew Richardson, Chief Executive of Metalrax, commented:
    "The disposal of Welland Engineering Supplies demonstrates our continued commitment to reorganising the Group's existing operations as
part of our long term growth strategy".
    For further information, please contact:

 Metalrax Group PLC
 Andrew Richardson, Chief Executive  0121 433 3444

 Arden Partners
 Chris Fielding                      020 7398 1600
 Steve Douglas                       0121 423 8900

 Hogarth Partnership                 020 7357 9477
 Rachel Hirst
 Andrew Jaques
 Anthony Arthur




This information is provided by RNS
The company news service from the London Stock Exchange
 
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