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.

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.

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

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into
2 Mar 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
27 Feb 2023
The outlook for Shell shares is mixed, despite bumper profits
Energy stocks

The outlook for Shell shares is mixed, despite bumper profits

With profits surging, it looks as if Shell is on a roll, but the company’s growth from here is hard to see as Rupert Hargreaves explains.
6 Feb 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023

Most Popular

Bank of England hikes key interest rate to 4.25%
UK Economy

Bank of England hikes key interest rate to 4.25%

The Bank of England raised rates by 0.25% following a surprise jump in inflation.
23 Mar 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Ofgem’s price cap is now predicted to fall below £2,000, based on average typical use, from July, for the first time since 2022. We have all the detai…
21 Mar 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

The Bank of England raised rates to 4.25%, its 11th consecutive increase. Does the base rate have further to go?
23 Mar 2023