TIDMMRX

RNS Number : 2851B

Metalrax Group PLC

02 April 2013

2 April 2013

Suspension from trading of securities on AIM

Metalrax Group PLC ("Metalrax" or "the Group"), the niche supplier of specialist engineering and consumer durable products announces that, in line with trading trends set out in recent results statements trading has been challenging in the current economic environment but overall has been in line with market expectations. Trading has been particularly difficult in the Consumer Durables Division, particularly in light of the major contract loss announced on 31 July last year and results in this division have been materially below expectations.

As a result, the sales volumes of the Consumer Durables Division have fallen below expectations. Consequently the Group's funding availability, which is linked to the sales volumes and represents a large proportion of the Group's overall financing, has been significantly lower than expected.

The Group recently appointed KPMG to assist with a review of the options available to the Board which could include the sale of a number of the Group's companies and/or assets for best value.

The Group is now experiencing significantly worsening working capital. Although the directors have sought further financing to allow the Company to continue trading, such financing has not been forthcoming. It has therefore become evident that the only course of action available for the board is to place Metalrax and certain of its subsidiaries into administration. The board therefore intends to appoint Will Wright and Mark Orton of KPMG as Joint Administrators of Metalrax pursuant to Schedule B1 of the Insolvency Act 1986.

In light of the above, the Group has requested suspension of the Group's shares from trading on AIM, pending clarification of its financial position with immediate effect.

Further announcements will be made in due course.

Enquiries:

 
Metalrax Group PLC                       +44 (0) 845 030 3300 
Andrew Richardson, Chief Executive 
Caroline Green, Group Finance Director 
 
Arden Partners plc 
Steve Douglas                            +44 (0) 121 423 8943

This information is provided by RNS

The company news service from the London Stock Exchange

END

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