StockMarketWire.com - Metalrax Group has produced its interim report for the six months ended 3 July 2011 showing on-going revenues increased by 16% compared with the first half of 2010, mainly due to the growth in export sales in the Specialist Engineering division.

On-going gross margins have decreased year on year by 1.3% to 24.6% (2010: 25.9%).

Operating profit before exceptional items and share option costs was £0.9m (2010: £0.6m). The profit after tax was £0.1m (2010: £0.4m loss).

Cash used in operating activities of £0.2m (2010: £0.8m inflow) reflects the increase in working capital levels required to fund the growth in revenues.

Net debt has been reduced to £6.1m from £8.3m as at 31 December 2010 2010 H1: £12.7m) following the disposal of vacant properties and the completion of two further sale and leaseback transactions. Asset disposals generated £4.1m in the 26 weeks to 3 July 2011.

Commenting on these results, Andrew Walker, Chairman, 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."




At 8:14am: [LON:MRX] Metalrax Group share price was +0.25p at 7.75p



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