Metalrax Group Share Discussion Threads

[rampant debra] 04/6/2011 17:16

this is nothing like southern cross. as well as the sale and lease backs (which were on a massive scale) sth crs was largely dependent on the government and also required a 90% occupancy rate in the homes to make a profit, which was crazy.

[redips2] 04/6/2011 15:40

dmhzx - 19 Feb'11 - 07:35 - 621 of 745

I was about to buy into these till I read the latest sale and leaseback.

Do you actually hold any of these shares?

[lance corporal winstanley ash] 31/5/2011 18:53

Record Month at Weston Body Hardware

Weston Body Hardware Notches Up Record Sales and Profits

Despite tough economic global conditions Redditch-based access control manufacturer Weston Body Hardware has recorded the greatest monthly sales figures in its 26 year history.

The company achieved sales of £809,000 for the month of September, up 22 per cent on August's figures. Ashley Heath, Sales & Marketing Director for WBH, commented: "Year on year growth is currently running at 29% and we are predicting it will hit 40% by the end of this year.

"Growth is coming from all markets with Australia, the United States and the UK particularly buoyant. Our order book is three times what it was 12 months ago thanks to a combination of factors - the diversity of our markets and products; the growth of the power generation market and our global distributor network seeing a return to better times.

"We have been recruiting additional staff and investing in tooling to win new contracts. There is a real buzz about the place," he said.

The reversal in the company's fortunes is nothing short of remarkable. In 2008 the world recession began to really bite and confidence was already low when the global banking crisis erupted. WBH, part of the Metalrax Group, made the tough but necessary decision to cut the workforce by 30% to 60 employees in response to a fall in demand across its core markets.

Roy Sims, Chief Executive of WBH commented: "The cuts were severe but necessary as our customers fortunes were declining rapidly and, as a result, our order book pipeline slumped. It was better to undertake major surgery to protect the company and the majority of employees, than coming back and implementing 'death by a thousand cuts' which would have inevitably led to more job losses.


"The workforce has been truly remarkable and even retrained over a 12 month period in order for us to meet other opportunities in the renewable energy sector, securing a major contract from Evance to make wind turbine assemblies for the Evance Iskra R9000, a small wind turbine designed to capture more energy at lower wind speeds."
WBH continues to serve its core business providing access controls solutions to a wide variety of industries including vehicles (off road and highway), large enclosures for units such as generators and compressors, capital plant and a wide variety of smaller industries through its extensive range of products.

It manufactures an extensive range of high quality and robust innovative products including all type of handles, locks, latches and hinges; and more specialist products like steering column locks and fuel filler locks.

Roy Sims concluded: "There is no doubt that 2011 is going to be a difficult year for British industry as whole, but we have taken all necessary steps to squeeze out unwanted costs from the business and are now lean and hopefully well placed to ride out any further blips on the horizon."

[lance corporal winstanley ash] 31/5/2011 18:49

DMHZX. That one was the last of the sale and leasebacks. They must have paid off some serious debt now and businesses are profitable. specialist engineering section is booming. Be nice to get a trading statement soon.

[dmhzx] 31/5/2011 18:38

At least this ine looks sensible. All those sales and leasebacks were total irresponsibility, and the board shoul be ashamed.

Before the deal they had property and interest costs of £100K.

After the deal they have no property, and costs of £200K.

If they could afford £200K, why not keep the property and increase the payments by £100K. In 12 months the debt would be down by 1.2 million, AND they'd have had the property.

That rent AND the value of the property are both going to rise.

[lance corporal winstanley ash] 31/5/2011 17:59

A very interesting disposal. I wonder if they have any more vacant properties that could be turned into cash?

[rampant debra] 31/5/2011 11:14

must be due a rerating soon. all this debt paid off and now a profit making company.

[rampant debra] 31/5/2011 09:30

just topped up

[rampant debra] 31/5/2011 08:17

More £££ = More debt paid off = Less interest payments = Bigger profits

Metalrax Group.
Property Disposal
RNS Number : 5317H
Metalrax Group PLC
31 May 2011

For Immediate Release
31 May 2011

Metalrax Group plc
("Metalrax" or the "Group")

Sale of Vacant Property
Metalrax Group plc (AIM: MRX), the niche supplier of specialist engineering and consumer durable products, is pleased to announce that it has completed the sale of its vacant property in Hockley, Birmingham for £755,000. The property has been vacant for over 2 years following the relocation of its trading entity Samuel Groves.
The proceeds from this sale will be used to reduce the Group's bank borrowings.
Andrew Richardson, Chief Executive of Metalrax, commented:

"The disposal of vacant properties is a key component of our strategy to reduce Group borrowings. This sale is the third surplus property sale in 2011 and demonstrates our continued commitment to reducing debt."
For further information, please contact:
Metalrax Group PLC
Andrew Richardson, Chief Executive
0845 030 3300
Arden Partners

Steve Douglas
0121 423 8900
Jamie Cameron
0207 614 5925

[rampant debra] 27/5/2011 12:19

roger. they are concentrating on paying down debt. mrx is now profit making and concentrating on the core businesses and wont be doing any more sale and leasebacks. just needs to get out of the 10-12 range! trading statement coming soon?

[rogerrail] 20/5/2011 15:32

reducing gearing makes it easier for the company to borrow more - hence they must have a purchase in mind - there is no ecomomic justification for selling the property at current interest rates that I can see

[lance corporal winstanley ash] 18/5/2011 18:01

slow and steady

[redips2] 18/5/2011 09:26

Well you would at these prices!!

[5070481] 09/5/2011 14:54

Just started doing some work on this. Initial impression on this latest leases back is that previously they had interest payments of about £100k per annum on this £1.6m. They have sold it, reduced interest payments by this amount but now have to pay £200k in rent. Net situation is that they pay £100k per annum for the property. I don't see any difference in terms of annual expenses following this sale. Am i missing something?

[rampant debra] 06/5/2011 15:23

saving a 100k a year in interest payments

[pvb] 05/5/2011 15:42

can annie one recomend a share that will make me money .please

I'm not sure Annie is a regular on this thread...

[charo] 05/5/2011 11:46

the rent yield of 12.5% reflects the true market risk of this stock.

[lance corporal winstanley ash] 04/5/2011 19:15

only a matter of time now boys.

[ludl0w] 03/5/2011 18:22

can annie one recomend a share that will make me money .please

[rampant debra] 03/5/2011 18:16

Sale and Lease Back Contract
TIDMMRX

RNS Number : 8443F

Metalrax Group PLC

03 May 2011


For Immediate Release 3 May 2011

Metalrax Group plc

("Metalrax" or the "Group")

Sale and Lease Back Contract

Metalrax Group plc (AIM: MRX), the niche supplier of specialist engineering and consumer durable products, is pleased to announce that it has today exchanged on a sale and leaseback agreement with Johnson & Starley Property Limited. Completion is anticipated to occur on 17 May 2011. This transaction relates to the Group's property at Progress Works, Elm Street, Burnley, Lancashire, BB10 1PB where George Wilkinson, a Group subsidiary which manufactures consumer bakeware and other household products, is based. This is anticipated to be the final sale and leaseback completed by the Group in the UK and follows the earlier sale and leaseback of three of its' properties in December 2010 and January 2011.

The cash consideration receivable by the Group is GBP1,600,000, payable on completion and the Group has entered into a 15 year lease, with annual rent reviews. The commencing rent will be GBP200,000 per annum.

The proceeds from this sale and leaseback transaction will be used to reduce the Group's bank borrowings. The reduction in interest costs associated with this debt repayment will be c.GBP100,000 meaning that the net cash impact to the Group of this transaction will initially be in the region of GBP100,000 per annum. The property being disposed of has a net book value of GBP1,775,000 and therefore a loss on disposal of GBP175,000 will arise on completion of this transaction.

Andrew Richardson, Chief Executive of Metalrax, commented:

"We remain focused on reducing our gearing by cash generation from both operations and asset sales. Lower bank borrowings gives the Group more freedom to pursue its goals of superior return on investment and sustainable growth. This transaction is an essential part of this de-gearing strategy. "

For further information, please contact:


Metalrax Group PLC
Andrew Richardson, Chief Executive 0845 030 3300

Arden Partners
Steve Douglas 0121 423 8900
Jamie Cameron 0207 614 5925

[lance corporal winstanley ash] 03/5/2011 17:41

Yes. Lots of steady buying this afternoon post 4pm.

[redips2] 03/5/2011 14:20

Nice steady buys today, all good stuff.