Profits return to black at Metalrax
POST-tax profits have returned to the black at Birmingham-based engineering and consumer durable products firm Metalrax.
The company, headquartered in Kings Norton, posted a profit of £100,000 for the 26 weeks ended July 3, 2011, a rise from the £400,000 loss it made in the corresponding period last year.
On-going revenues have also climbed year-on-year, from £26.6m to £31m, due largely to a growth in export sales, Metalrax said today.
Gross margins have fallen from 25.9% to 24.6% and operating profit, before exceptional items and share option costs, rose from £600,000 to £900,000.
Cash used in operations was £200,000 compared with the £800,000 generated from operations in the same period in 2010.
Net debt has been reduced to £6.1m from £8.3m as at 31 December 2010 – it was £12.7m in H1 2010 – following the disposal of vacant properties and the completion of two sale and leaseback transactions.
Asset disposals generated £4.1m in the 26-week period, it said, while its pension deficit decreased by £2m to £2.7m.
Chairman Andrew Walker said: “The strong revenue growth from the specialist engineering division is encouraging and the price rises implemented throughout the first half should be reflected in an improved margin being reported in the second half.
“Taking the group as a whole, the board expects to meet market expectations for the full year.”
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