Metalrax Group Share Discussion Threads

[rampant debra] 15/3/2011 14:35

ok. im still going to hang in there with this one. cheers

[rampant debra] 15/3/2011 10:40

wasnt the money generated from sale and leasbacks used to pay off the debt, so that would be seperate from overall earnings in terms of cash generation and overall 0.29m profit? or am i thick.

[rampant debra] 15/3/2011 08:11

i would say its an excellent start in the recovery of the company. a little better than the 11 million or so they lost last year.

[rampant debra] 14/3/2011 13:21

someone is loading up

[rampant debra] 14/3/2011 12:20

price doesnt seem to want to move though?

[cockneyrebel] 14/3/2011 11:16

yep, a stream of buys.

Will be interesting to see them tomorrow.

CR

[rampant debra] 14/3/2011 08:57

lots of buying ahead of results tomorrow

[omerta] 11/3/2011 17:08

Mentioned in Inv Cron

[rampant debra] 24/2/2011 18:15

it does seem promising either way....

[electronica] 24/2/2011 16:13

Rampant D

Now doesn't thata Brookwell stake look interesting - up to 4%+ from nowhere.

Brookwell can be easily considered to be a bidder for MRX.



Are we being stalked?

[rampant debra] 24/2/2011 15:45

TR-1: NOTIFICATION OF MAJOR INTEREST IN SHARES

1. Identity of the issuer or the underlying issuer
of existing shares to which voting rights are
attached: ii
Metalrax Group PLC

2 Reason for the notification (please tick the appropriate box or boxes):

An acquisition or disposal of voting rights
X

An acquisition or disposal of qualifying financial instruments which may result in the acquisition of shares already issued to which voting rights are attached

An acquisition or disposal of instruments with similar economic effect to qualifying financial instruments

An event changing the breakdown of voting rights

Other (please specify):

3. Full name of person(s) subject to the
notification obligation: iii
Brookwell Limited

4. Full name of shareholder(s)
(if different from 3.):iv
Nortrust Nominees Limited

5. Date of the transaction and date on
which the threshold is crossed or
reached: v
24 February 2011

6. Date on which issuer notified:
24 February 2011

7. Threshold(s) that is/are crossed or
reached: vi, vii

>4%

ORD SHARES
0
0
5,585,040
5,585,040

4.66%

[dmhzx] 21/2/2011 18:17

And my point was that the sale and lease back looked fishy. And still does.

The company doesn't appear to need it.
The actual terms of the deal are DREADFUL, giving a 12.5% retur to the buyer in year 1 and goodness knows what after that.
And it increases their cost by over 50%. (65K V 100K)


Would the buying company perhaps have some directors on board related to anyone high up in MRX???

So either it smells of backhnanders and dodgy, or the trading statements are, like the products, fabricated.

But surely directors don't lie on the statements? - How long a list do you want of smaller companies that have done just that?? (and got away with it).


Coupled with that, they are currently paying over 8% on their borrowings from the bank. - Does that sound like a company whose bankers see them as low risk (Though admittedly the banks will screw everyone they can)

[rampant debra] 21/2/2011 14:40

eskalito. thats correct, they bought in at around 4 pence late last year. Surely at the time they were buying the shares they would have had an idea the company is close to breaching covenants?

Also dont you think this recent trading update is quite bullish for a company on the brink?

All imo, I may be reading this completely wrong...


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 £0.75 million. In total, actions taken in recent months will result in total debt repayments of £3.7 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

Andrew Richardson, Chief Executive
0121 433 8961






Arden Partners plc



Steve Douglas
0121 423 8900

Jamie Cameron
0207 614 5925









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

[lance corporal winstanley ash] 21/2/2011 14:10

some nice buys gone through.

[rampant debra] 20/2/2011 10:27

valid posts but if you look at the recent news flow it is not a company in panic mode. various parts of the business are profit making again and overall business will make a profit in h2. it is a company concentrating on paying off debt.

why would the directors have bought shares a few weeks back if they are close to breaking banking covenants?

[rampant debra] 19/2/2011 18:56

short sighted to simply say they will be 35k a year worse off. how much will they save in interest payments by paying off debts early. will some of the lump sum be used to expand other areas of the business generating further income. will they take advantage of the tax breaks.

[cockneyrebel] 19/2/2011 13:26

if you can't make the remortgage payments the choice to sell your house might not be yours.

CR

[dmhzx] 19/2/2011 13:18

Still looks like an accounting trick to me. Smoke and mirrors.

They were paying £65K in interest, and owned a building worth £800K with no rent at all.

Now they don't own a building and are paying £100K.

Net result, no building and £35K more costs (until the first annual rent review of course.)

If they could afford £100K, why not just increase the debt repayment plan by that much?

And surely, they could have done a better rental deal? To the best of my knowledge returns on commercial property are not currenty 12.5% Somehwere around 7.5% I believe, so how come they agreed to what represents something like 67% above the current market rate.

And with the bank rate at a historic 0.5%, are MRX really having to pay 8.125% to borrow?

And it's not as if they're in negative equity territory, so why the need to panic? - No there's definitely something wrong in the kedgeree on this one.


"But the debt is down"???? So what!! Should I sell my house to pay off the mortgage, and then agree to pay rent on it at more than the mortgage repaymente were???

[electronica] 19/2/2011 11:50

CR

Spot on! In normal circumstances no one would choose to do a sale & leaseback.

But ........... the new MRX management have to reduce their inherited pile of debt as soon as possible - otherwise they are completely in the hands of their consortium of bankers.

The small (& affordable) extra costs incurred in the last 2 property moves are a small price to pay to give the (v competent) new management a greater degree of control over the business. On balance these moves will (soon) prove to be of benefit to all shareholders & should be welcomed.