Metalrax Group Share Discussion Threads

[choppa] 28/1/2013 18:29

This is all very tiresome and now I dare to say predictable. The odds look very much stacked against any sort of turnaround now and the lack of communication speaks volumes about just how bad the situation is. Sticking their heads in the sand the lot of them imho.

[charo] 28/1/2013 17:22

draft in turnround chairman experienced in small industrial sectors.look at coral products plc,jg would eat this lot.

[meijiman] 28/1/2013 11:23

Indeed well done Electronica. When a company is struggling or thought to be, investors are more likely to assume the worst -maybe more than might otherwise be warranted.I don't like the sound of this Board meeting. Comes across like another cosy get together.
Presumably at Severfield a meeting took place between the relevant exec and non-exec directors without the ceo-who was duly fired.
I can't see how this present lot can continue. This failure has been going on for two years or more.
First motion
Congratulations to CG on her appt to the Government quango.
Second motion.
We must upgrade the biscuits at the board meeting. I propose chocolate coated rather than these plain ones from ASDA.
Third motion
A new incentive scheme for the Board to recognize our achievements in these difficult times.
Fourth motion
New service contracts for the top management. Anyone losing their position to receive three years salary as a minimum.

[pvb] 28/1/2013 10:11

They have reverted to the old national plc policy of treating shareholders as a bloody inconvenience & a nuisance.

Umm. Last 'company_' (it wasn't then) that treated me like that was Northern Rock.

[gingerplant] 28/1/2013 09:52

Well done Electronica

[electronica] 28/1/2013 09:50

No reply to my emails to Caroline Green so I phoned her this morning.

Just before Xmas the MRX BoD "decided" not to issue a Trading Statement this year. I (forcefully) explained that this sends an incredibly bad signal to the market - but no further explanation or contrition was offered.

There is another Board Meeting taking place tomorrow & I asked that this item be put on the agenda. I will also email the Chairman Andrew Walker explaining my displeasure at the new MRX policy of omerta - they have decided to buck every current plc trend. They have reverted to the old national plc policy of treating shareholders as a bloody inconvenience & a nuisance.

[maltatrader] 28/1/2013 08:50

no trading statement......getting more worried

any replies from Caroline?

[electronica] 26/1/2013 08:56

Here's a bit more detail on Caroline Green's new interest .........



She still hasn't bothered replying to my emails about the missing Trading Statement - so it's now time to take it to the next level.

[baner] 24/1/2013 08:48

It is very late days for metalrax. Add to the massive financial debts also the huge lease back committments relating to property deals and the pension deficit, and Metalrax is over 200% geared based on tnav ( excl intangibles, that is). An early break up may save them from bankruptcy but what will be left for shareholders is another matter.

[meijiman] 24/1/2013 08:30

From memory the ceo has been in situ since 2007. After an initial honeymoon things have got worse. There is now huge value destruction-on any financial measure it does not look good. Reviewing yesterday's poor performers the ceo of Severfield got the boot after a series of misshaps. Unless this turns round quickly serious thought must be given to getting onboard a new man at the top.But can the Chairman grasp the nettle?

[gingerplant] 24/1/2013 08:24

Electronica - the close period is 60 days leading up to their finals which were on 19 March last year, 15th the year before.

Last year's trading update came just before the 60-day period. The year before ditto.

So they must be later this year if they're going to come out with a trading statement? The earliest the finals could possibly be now would be w/c 25th March so either they aren't going to bother with an update, or it's imminent I suppose?

[electronica] 24/1/2013 07:44

GingerP

They are not in a close period! Last year they issued a Trading Statement on 13th Jan - this year we've had nothing.

I agree with your analysis regarding Caroline Green's motivations - but I still want to see regular communications with shareholders. I'm trying to set up a meeting with Andrew Walker to discuss these issues.

[gingerplant] 24/1/2013 07:39

I can understand the frustration with Mgt's lack of communication, but do bear in mind they're now in close period so couldn't disclose anything material in any case.

I may be wrong to have done so - but added to my slightly losing position at 3.13p yesterday.

As for Caroline Green's role on the Gov't panel - it's clearly a B/s type of thing. The only crumb of comfort I can take from it is that it's surely something she wouldn't be so brazen to be involved in if the Co. of which she's FD is going down the pan (geddit?) or am I being too optimistic and naive?

[electronica] 24/1/2013 07:26

MaltaTrader

Correct ............. no answer yet. I'm now preparing a chaser email - with an extra specific question about the disappearance of the Trading Statement.

[maltatrader] 24/1/2013 07:07

no answer from Caroline Green? if it was an email from Vince Cable she would have answered it immediately!

[choppa] 23/1/2013 19:40

Management an absolute disgrace and completely incompetent. Shareholder value has been competed eroded.

[diku] 23/1/2013 13:24

meijiman.....you couldn't have said it better....all too often within PLC casinos....


This management structure looks very cosy and as others have said they may hope to spin out a few more years on the gravy train.

[meijiman] 23/1/2013 11:29

Some interesting and insightful posts. The company website is worth a look.
It appears to relate to a much larger company and it's full of management speak stuff.'Corporate responsibility' 'mission to explain'-all the usual corporate guff. Can't say its bad, but it must have cost plenty to put together -either cost of consultants or internal staff. But its not what's required at this moment in time (yes I'm aware its a statutory requirement). Agree with the comment that CG would be more at home in a larger outfit or public body rather than a Midlands metal basher.
What is needed is a strategy and its rigorous implementation.
The two non-execs are both over 60 and dont look the type the cause any waves -pick up 35k a year and cause no problems.
This management structure looks very cosy and as others have said they may hope to spin out a few more years on the gravy train.
Any real change will come from institutional pressure -not from BB posters.
But at least we are showing some concern as to getting this back on track.

[imastu pidgitaswell] 23/1/2013 10:47

Followed this from historical interest, in the days when they were 80-90p a share with a good yield. It does seem that they have no viable plan and are just prolonging it (and taking the remuneration) for as long as they can.

The Directors Remuneration report in the most recent set of full year accounts (page 26):



doesn't she much light - CG was only appointed to the FD role after the year-end and remuneration is not disclosed. The CEO doesn't do too badly, best part of £300k including pension and benefits (£500k the year before). The non-exec chairman, on £70k for a few days a year is taking the mickey, as you would expect.

They say (in the Remuneration Policy) that "The Company is in a turnaround phase and operates in highly competitive markets. It is therefore essential to the Company's recovery to recruit, retain, motivate and reward executives with
the capability to devise and deliver a strategy that will return the Company
to satisfactory levels of financial performance over time."

Make of that what you will.

The FD "joined the Group as Director of Corporate Development in August 2008 with responsibility for non-core asset disposal to reduce gearing, growth initiatives, investor relations, group communications, the property portfolio and the Group's future M&A strategy. She was appointed to the Board as Group Finance Director in January 2012. Prior to Metalrax, Caroline has eight years' Private Equity experience, initially at 3i PLC and spent ten years at Xerox in a variety of roles."

The usual short-sightedness - flog off the assets to reduce the short term debt (and increasing real long term debt) at the expense of sustainability, guaranteeing long term failure. Kicking the can down the road, keep getting the remuneration.

Hey-ho...

[charo] 23/1/2013 10:23

cg is an administrator at home in large institutional orgs or public sector she should never have been apppointed.aw should step down and ar sacked.a chairman with balls needs to be appointed.

[electronica] 23/1/2013 10:07

meijiman

"Im not sure what communication with investors can be undertaken at present"

How about an end of year Trading Statement? Last year we got one on the 13th Jan, this year we've had nothing!

[diku] 23/1/2013 10:03

For insiders its a merry go round....

[maltatrader] 23/1/2013 09:54

thanks Electronica. Well done.