Metalrax set to enter administration

Metalrax announced Tuesday that it was set to fall into administration after its working capital worsened and attempts to refinance failed.

The AIM-listed supplier of specialist engineering and consumer durable products said that as a result of trading falling below expectations it will appoint Will Wright and Mark Orton of KPMG as joint administrators.

The company has struggled, particularly in its Consumer Durables division, since the loss of a major contract in July last year.

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Sales volumes have fallen below expectations and as a result the group's funding availability has dropped significantly.

"Although the directors have sought further financing to allow the company to continue trading, such financing has not been forthcoming," the group said in a statement.

"It has therefore become evident that the only course of action available for the board is to place Metalrax and certain of its subsidiaries into administration."

The group has consequently suspended its shares from trading on AIM pending clarification of its financial position.

RD