MRX Metalrax Group

RNS No 8465b
METALRAX GROUP PLC
19 April 1999


Major product developments boost Metalrax Group's USA operations

"A positive yet cautious approach to the remainder of the year" - Mr Eric
Moore

"A positive yet cautious approach to the remainder of the year" following the
recent introduction of the Euro and the impact of computer systems in the year
2000 is signalled by Mr Eric Moore, chairman of Metalrax Group PLC, the
engineering specialists, which recently reported an increase in 1998 pre-tax
profit to #14.11m from #13.23m.

Mr Moore also discloses that the group purchased 2.25m ordinary shares in the
market at an average price of 87p per share, "effectively reducing the overall
cost of capital and enhancing shareholder value in the longer term".

In his report on the precision components division, intricate manufacturing
methods brought orders for an American-owned customer of document segregation
containers for postage and mail room processing machinery, and a range of
stainless steel flush fitting handles has been well received in Europe.  A new
customer in Germany ordered "aesthetically selected automotive trim
components", while a combination of divisional resources created one-stop shop
facilities for the supply of a complete fuel filler neck assembly to a French
customer.  And these advances have helped to offset the effects of reductions
in vehicle build programmes by some UK producers.

Housewares drove business to higher levels, firmly establishing Progress as
the UK's leading bakeware manufacturer, with the world's largest range of
products, shapes and sizes.  And children's bakeware sets and fun baking
products now complement more traditional ranges, and the introduction of
licensed merchandise featuring internationally recognised film characters
"help to keep the fun and brightness in domestic utensils for the United
States and other world markets".  And in the USA the introduction of new
closet storage and outdoor decorative products has followed the development of
a new line of licensed kitchen utensils for the core gadget business.  A new
packaging programme was also implemented for the entire range of sharpening
products.

The storage and handling equipment division successfully completed a number of
large turnkey projects, including an archive store with over three-and-a-half
miles of mobile shelving, and a contract for structural steelwork for
conveyors - incorporating 500 tonnes of steel.  Successful fast track
installations were completed against tight delivery lead times, helped by
investment in a new generation of computer aided design and estimating
facilities and the commissioning of a state-of-the-art powder coating plant. 
And, following the design of a hybrid shelving system for the storage of
exhaust pipes, repeat business has been secured, while "section rolling
continued to contribute strongly to trading results".  Mail order work
maintained its growth pattern, with group products appearing in new
catalogues, at home and abroad.

Metalrax Group PLC, a broad spectrum engineering group, continues its
consistent long-term record of out-performing companies in its sector.


Further information:
Mr Eric Moore, chairman
Telephone: 0121-433 3444


END

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