Metalrax Group PLC Trading Update (0979I)

TIDMMRX

RNS Number : 0979I

Metalrax Group PLC

20 July 2012

20 July 2012

Metalrax Group PLC ("Metalrax" or "The Group")

Trading Update

Metalrax Group PLC ("Metalrax" or "the Group"), the niche supplier of specialist engineering and consumer durable products, announces the following trading update ahead of the announcement of its half-year results for the 26 weeks ended 1 July 2012, which are scheduled to be announced during the second half of September.

At the half year, trading from the Group's two operating divisions, Specialist Engineering and Consumer Durables, has been mixed. Within the Specialist Engineering division, export sales have continued to perform well and businesses with customers in the yellow goods and automotive markets have seen good demand. The Consumer Durables division has continued to face very challenging trading conditions, particularly within the High Street Retail and Grocery sectors, reflecting the general economic situation within the UK consumer marketplace.

This degree of inconsistency in demand across the businesses has impacted the visibility of the forward order book and has had a consequential effect on our ability to forecast the outturn for the second half. However, given the trading experienced primarily by a number of the Group's export-led businesses, the Board anticipates an operating outcome for the year as a whole broadly in line with last year.

During the first half the Group has also undergone significant restructuring to address the issues presented by the current market conditions, and whilst there is still further work to be done, the positive effects this has had at both an operational level and in terms of working capital efficiencies and cash flow, are now being felt.

The Company also today announces that Nick Longley, the Group Financial Controller and Company Secretary, has resigned and will be leaving on September 30 2012.

Chief Executive, Andrew Richardson commented:

"Notwithstanding the current uncertain and difficult economic conditions, I am satisfied that the Group is well placed to benefit from good levels of demand for its products from overseas markets and in certain of its UK markets, whilst addressing the challenging conditions we are experiencing in other markets in the UK.

Finally I would like to thank Nick Longley for the hard work and commitment during his time with Metalrax and wish him all the best in his future career."

Enquiries:

 
                                           [phone] 
 Metalrax Group PLC                              3300 
 Andrew Richardson, Chief Executive 
 Caroline Green, Group Finance Director 
 
 Arden Partners plc 
                                           [phone] 
 Steve Douglas                                   8943 
 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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