UK Small Caps

LONDON (ShareCast) - Household goods and engineering group Metalrax warned results in the current year could fall below current market expectations.

Metalrax, which disposed of six businesses in line with a strategic review, said, "Current economic conditions reaffirm the need for the group's repositioning into growing, defensible niche sectors in line with the January 2008 strategic review and we anticipate 2009 being a challenging year."

CEO Andrew Richardson said, "Although trading has improved slightly during the course of 2009, if this trend does not improve further over coming months, the Directors would expect the group's performance in the current year to fall below current market expectations."

For the year ending 31 December 2008 operating losses narrowed to £1.4m from a loss of £4.2 in 2007. Revenue for the period was up 6.6% to £74.8m. Gross margins improved 1.4% to 24.2% from continuing activities.

Metalrax said it is now focusing on its Consumer Durables and Specialist Engineering divisions and added its acquisition Post Glover LifeLink has been performing above expectations.