Mixed bag for Metalrax

ENGINEERING and consumer durables group Metalrax has reported mixed fortunes in trading activity in the half year to July 26.

The Alvechurch firm said export sales have continued to perform well in its specialist engineering division as businesses with customers in the yellow goods and automotive markets have seen good demand.

But 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,” the firm said.

“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.”

Metalrax said that during the first half it had undergone significant restructuring to address the issues presented by the current market conditions.

“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,” it said.

Chief executive Andrew Richardson said: “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.”

Metalrax has also announced that announces that Nick Longley, the group financial controller and company secretary, has resigned and will be leaving on September 30.