(MRX.L) Metalrax Group PLC Buy/Sell

RNS Number : 2796W Metalrax Group PLC 27 July 2009

27 July 2009

Metalrax Group PLC ("Metalrax" or "the Group")

Disposal of Commercial Bearings business

Metalrax, the niche supplier of specialist engineering and consumer durable products, is pleased to announce the sale on 24 July 2009 of its Commercial Bearings business, excluding its property, to Tufnol Composites Limited for a cash consideration of approximately GBP 0.1 million.

Commercial Bearings is a manufacturer and supplier of bearings, conveyor systems, rollers and turned parts.

In the year ended 31 December 2008 Commercial Bearings made an operating loss of GBP 81,000 on turnover of approximately GBP 1.5 million. The business has continued to incur losses at an increasing rate in the current year. At 30 June 2009, based on unaudited accounts, the net assets being sold had a book value of approximately GBP 470,000.

The Directors intend to use the proceeds of the sale to reduce the Group's borrowings.

Andrew Richardson, Chief Executive of Metalrax, commented:

"We are pleased to announce the sale of the Commercial Bearings business in what is a difficult M&A market. The sale, which will eliminate ongoing losses from this business, further demonstrates our commitment to reorganising the Group's operations as part of our long term growth strategy to focus on growing, defensible niche sectors."

For further information please contact:

Metalrax Group PLC
Andrew Richardson, Chief Executive 0121 433 3444

Arden Partners plc
Chris Fielding 020 7398 1600
Steve Douglas 0121 423 8900
Matthew Armitt 020 7398 1600
Hogarth Partnership 020 7357 9477

Rachel Hirst Andrew Jaques Anthony Arthur

This information is provided by RNS The company news service from the London Stock Exchange

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