Metalrax Group PLC Update (3523B)

TIDMMRX

RNS Number : 3523B

Metalrax Group PLC

02 April 2013

387 jobs saved at AIM-listed Metalrax Group Plc

Will Wright and Mark Orton from KPMG have today 2 April been appointed joint administrators to AIM-listed Metalrax Group Plc, and its subsidiaries Metalrax Engineering Support Services Limited, Metalrax Specialist Applications Limited and Down & Francis Industrial Products Limited.

On appointment, the administrators sold the business and assets of the niche engineering group to a group of companies headed by Bowman Birmingham Limited. The group will trade as Arc Specialist Engineering and is backed by specialist private investors who have committed to a significant investment programme in the company. In addition, as part of the transaction, solvent share deals were completed for two companies within the Group, both of which were not affected by the insolvency process - Metalrax Housewares Limited, which was sold to Cable Capital Partners Limited and Metalrax Overseas Holdings Limited, which was also sold to Arc Specialist Engineering - securing a total of 387 jobs.

Will Wright, joint administrator from KPMG said:

"The Group has experienced difficult trading conditions for some time, primarily within their consumer durables division. While the Group's management team has divested in recent years to focus upon niche areas, trading in this division has led to a significant drain on the Group's financial situation.

"Being able to sell the business and assets, together with shares in solvent businesses within the Group, has been a great solution to securing a future for the business and more importantly just under 400 jobs."

ENDS

Notes to editors: -

 
 Location and employee numbers by businesses within the Metalrax 
  Group Plc 
--------------------------------------------------------------------------- 
          Business                Location           Number of employees 
---------------------------  ------------------  -------------------------- 
 Metalrax Group Plc           Alvechurch          6 
---------------------------  ------------------  -------------------------- 
 Metalrax Engineering 
  Support Services Limited    Wolverhampton       57 
---------------------------  ------------------  -------------------------- 
 Metalrax Specialist          Luton & Redditch    58 (Luton); 77 (Redditch) 
  Applications Limited 
---------------------------  ------------------  -------------------------- 
 Down & Francis Industrial                        0 (holding company) 
  Products Limited 
-----------------------------------------------  -------------------------- 
 
 
 Businesses sold as part of the transaction but not affected 
  by the insolvency process 
--------------------------------------------------------------------------------- 
          Business                    Location             Number of employees 
----------------------------  ------------------------  ------------------------- 
 Metalrax Housewares           Burnley, Great Ryburgh    100 (Burnley); 15 (Great 
  Limited                       & Oldbury                 Ryburgh); 39 (Oldbury) 
----------------------------  ------------------------  ------------------------- 
 Metalrax Overseas Holdings 
  Limited                      Kentucky, US              35 
----------------------------  ------------------------  -------------------------

For further information please contact:

Julie Marshall, All Round Communications

Tel: 07921 251106

Email: Julie@allroundcommunications.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with over 12,000 partners and staff. The UK firm recorded a turnover of GBP1.8 billion in the year ended September 2012. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 156 countries and have 152,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.

This information is provided by RNS

The company news service from the London Stock Exchange

END

MSCUUROROWASRAR

Metalrax Group (LSE:MRX)
Historical Stock Chart
From Jan 2025 to Feb 2025