Trading Update (2906Z)

TIDMMRX

RNS Number : 2906Z

Metalrax Group PLC

12 January 2011

Metalrax Group PLC

12 January 2011

Trading Update

Metalrax Group PLC (the "Group"), the niche supplier of Specialist Engineering and Consumer Durable products, today provides an update on trading prior to the release of its results on 15 March 2011 for the year ended 31 December 2010.

The directors anticipate that the Group's performance for the full year ended 31 December 2010 will be ahead of market expectations.

As indicated in the interim results announcement, in 2010 the Group has made good progress in the turnaround of its core businesses. The second half of 2010 will show the Group being profitable and demonstrating an improved performance over the first half and the corresponding period in 2009. Borrowings will also be below those reported in the 2010 Interim Report and 2009 Annual Report. In addition to the property disposals announced on 23 December 2010, on 24 December 2010 the Group disposed of the assets related to its Storage and Sections forming business unit for a total consideration of GBP0.75 million. In total, actions taken in recent months will result in total debt repayments of GBP3.7 million.

Cash flow from operations continues to be positive and the company has made excellent progress in reducing net debt, which has consistently been lower than anticipated.

Outlook

The positive trend in the second half of 2010 together with an improving macro economic background confirms the directors' view that the Company's core markets have begun to stabilise and gives us confidence that the actions taken over the past 36 months leaves the Group well placed to benefit during 2011.

For further information:

 
 Metalrax Group PLC 
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 Andrew Richardson, Chief Executive    0121 433 8961 
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 Arden Partners plc 
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 Steve Douglas                         0121 423 8900 
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 Jamie Cameron                         0207 614 5925 
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This information is provided by RNS

The company news service from the London Stock Exchange

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