14636 11/04/2008 Proof 10 14636 11/04/2008 Proof 10
Registered Office
Ardath Road, Kings Norton
Birmingham B38 9PN
Tel: 0121 433 3444
Fax: 0121 433 3325
Website: www.metalraxgroup.co.uk
E-mail: info@metalraxgroup.co.uk
Registered in England 793639
Metalrax Group PLC
Annual Report 2007
Metalrax Group PLC          Annual Report 2007
14636METALRAXCOV spine:Layout 1  12/4/08  10:03  Page 4 14636 11/04/2008 Proof 10 14636 11/04/2008 Proof 10
During 2007 the Group operated through three distinct divisions:
Housewares
Engineering Support Services
Automotive
Metalrax Group PLC make and supply specialist
steel products worldwide, operating in niche
markets with significant barriers to entry.
Welcome to Metalrax
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Contents
II Headlines 1 II Group at a Glance 2 II Chairman’s Statement 4 II Chief Executive’s Review of Strategy 6
II Chief Executive’s Review of Operations 8 II Operating environments, risks and uncertainties 15
II Corporate and Social Responsibility 16 II Financial Review 18 II Board of Directors 20 II Executive Board 21
II Directors and Advisers 22 II Report of the Directors 24 II Corporate Governance 26
II Directors’ Remuneration Report 30 II Report of the independent Auditors 35 II Consolidated Income Statement 38
II Statement of Recognised Income and Expense 39 II Consolidated Balance Sheet 40 II Company Balance Sheet 41
II Cash Flow Statements 42 II Accounting Policies 43 II Notes to the Account 49 II Shareholder information 70
II Five year record 71 II Notice of Meeting 72 II Group Operations 77
Metalrax }niche
Annual Report 2007 77 Metalrax Group PLC
Group operations
Housewares 
GW International
(formerly George Wilkinson (Burnley) and Microwise
Cookware)
Progress Works, Elm Street, 
Burnley, Lancashire BB10 1PB
Tel: 01282 415511   Fax: 01282 433112
‘Progress’ consumer bakeware, kitchen tools and
gadgets.
‘Microwise’ microwave cookware.
Samuel Groves
Norton Street, Hockley, Birmingham B18 5RQ
Tel: 0121 554 2001  Fax: 0121 523 2924
‘Mermaid‘ bakeware and cookware.
‘Longlife‘ catering equipment.
RTA 
Station Road, Great Ryburgh, 
Fakenham, Norfolk NR21 0DX
Tel: 01328 829292   Fax: 01328 829667
Wood and metal wine racks.
Innovative kitchen products.
Bathroom furniture.
MRX China Limited
Room 1307–8, Dominion Centre,
43–59 Queens Road East, Wanchai, Hong Kong
Enquiries to GW International
Engineering Support 
Services  
Advanced Handling
Northfields Industrial Estate,
Market Deeping, Peterborough PE6 8LD
Tel: 01778 345365   Fax: 01778 341654
Providing integrated handling solutions
Commercial Bearings
Bordesley Green Road, Birmingham B9 4TP
Tel: 0121 766 1370   Fax: 0121 773 8238
Industrial bearings
Cooper Coated Coil
Great Bridge Street, West Bromwich
West Midlands B70 0DJ
Tel: 0121 521 1500   Fax: 0121 521 1526
Surface coated metals
Down and Francis
Ardath Road, Kings Norton, Birmingham B38 9PN
Tel: 0121 433 3300   Fax: 0121 459 9222
Structural engineering and steel fabrications
Fabricote
Unit 38, Planetary Industrial Estate,
Planetary Road, Wednesfield, 
Wolverhampton WV13 3XB
Tel: 01902 864422   Fax: 01902 305442
Surface coated metals
Makespace Mezzanine Floors
Unit 1, Millfield Road Industrial Estate,
Donington, Spalding, Lincolnshire PE11 4UR
Tel: 01775 822060   Fax: 01775 822061
Lightweight mezzanine floors 
Metalrax
Bordesley Green Road, Birmingham B9 4TP
Tel: 0121 772 8151   Fax: 0121 772 6135
Storage systems, shelving 
and roller conveyor systems
Premier Architectural Metalwork
Unit 300, Catesby Park, Eckersall Road, 
Kings Norton, Birmingham B38 8SE
Tel: 0121 451 1212   Fax: 0121 451 1220
Architectural metalwork
Sections and Tubes
Hall Street, West Bromwich, 
West Midlands B70 7DW
Tel: 0121 553 2721   Fax: 0121 500 5002
Cold rolled metal sections
Stackright Building Systems
Charleywood Road, Knowsley Industrial Park (North),
Kirkby, Merseyside L33 7SG
Tel: 0151 548 3666   Fax: 0151 548 3777
and Units 1 and 2, Bloxwich Road, 
Walsall WS2 7BD
Tel: 01922 474455 Fax: 01922 474477
Building Systems
Welland Engineering Supplies
Northfields Industrial Estate,
Market Deeping, Peterborough PE6 8LD
Tel: 01778 380371   Fax: 01778 346916
Distributor of fasteners, hand tools 
and maintenance products 
Automotive 
Bacol Fine Blanking
(business sold 14 February 2008)
Sherwood Road, Aston Fields Industrial Estate,
Bromsgrove, Worcestershire B60 3DR
Tel: 01527 874205   Fax: 01527 833761
Fine blanking to 630 tonnes capacity
MRX Automotive
(formerly Bacol Industries, 
Kenham Tools and Pressings and Prescott Powell)
Middlemore Industrial Estate, Middlemore Road,
Smethwick, West Midlands B66 2EQ
Tel: 0121 558 3911   Fax: 0121 558 8798
Presswork to 700 tonnes capacity
Deep drawing and ironing
Tube manipulation and assemblies
B.S.C. Diecasting
Fryers Close, Bloxwich, Walsall, 
West Midlands WS3 2XQ
Tel: 01922 710070   Fax: 01922 408008
Zinc and aluminium pressure diecasting
Toolspec
Sedgwick Road, Luton, Bedfordshire LU4 9DT
Tel: 01582 572626   Fax: 01582 596891
Tube manipulation and assemblies
Weston Body Hardware
Crossgate Road, Park Farm Industrial Estate,
Redditch, Worcestershire B98 7SN
Tel: 01527 516060   Fax: 01527 526060
Locks, handles, latches and ancillary products
MRX Romania
Hidrosib S.A.
Sibiu, Romania
Enquiries to MRX Automotive 
Engineering and manufacturing facilties 
This document is printed on Take 2 Offset,
made from 100% recycled fibres sourced
from post consumer waste only.
14636METALRAXCOV spine:Layout 1  12/4/08  10:02  Page 2 Annual Report 2007 01 Metalrax Group PLC
Headlines
A challenging year in a rapidly changing global
economy, with renewed focus and a new strategic
approach towards generating growth and
improving return for shareholders.
Results in brief
2007 2006
£000 £000
Revenue 118,647 120,233
Operating profit before taxation and exceptional items* 3,381 7,007
Group (loss)/profit before taxation (9,956) 6,094
Cash generated from operating activities 4,684 2,702
Net debt 12,531 10,686
Gearing 24.8% 19.7%
(Loss)/earnings per 5p ordinary share (5.83p) 3.83p
Dividends paid per 5p ordinary share 5.40p 5.40p
* Exceptional items (note 3) are items of income and expenditure that, in the judgment of management, should be disclosed separately on the basis that they are material, either by their nature
or their size, to the understanding of the financial statements and where not to do so would distort the comparability of financial performance between periods. In 2007 the £12.2 million charge
comprised reorganisation costs, losses on long-term contracts, stock write-downs and property profits. In 2006 the £0.4 million charge consisted of reorganisation costs, property profits and a
discount on acquisition.
Operational
Housewares restructuring completed during the year
helped the Division’s operating margin grow from
4.8% to 7.1% and its return on net operating assets
increase to 10.7% from 6.6%.
Restructuring of the Board undertaken, with a new
Chief Executive appointed during the year. Post year-
end the team was further strengthened with the
appointment of a new Group Finance Director and a
new Non-Executive Director.
Changes to the Board have led to a change of
strategic focus already being implemented.
Financial
Despite the difficult year there was improved cash
generation from operating activities of £4.7 million,
up from £2.7 million.
Net debt is well under control at £12.5 million
representing gearing of 24.8%, only slightly up on last
year. This leaves substantial headroom within our
existing borrowing facilities.
Turnover broadly unchanged at £118.6 million. 02
Group at a Glance
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Metalrax }specialist
Housewares
Housewares operations produce 
and market the majority of
bakeware sold in Great Britain,
together with associated ranges of
kitchen tools to both retail and
commercial markets. Microwave
cookware and wine racks
complement these products
alongside wooden and plastic
housewares. Creatively designed
and sourced products for almost
every room in the house feature
strongly in ranges distributed
internationally.
Engineering 
Support Services
Engineering support services provide
surface coated metals, architectural,
primary and secondary steelwork,
mezzanine flooring and storage
equipment to an increasing number
of clients and also distribute tools,
fasteners and janitorial products.
Automotive
Automotive concentrates on
precision manufacturing activities
providing supplies to automotive,
telecommunications, off-road
vehicles, enclosure hardware and
brewery bar display markets,
operating in niche areas with
continuous process innovation.
2007 and historical
During 2007 our operations were centred on 
the Housewares, Engineering Support Services 
and Automotive sectors.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 03 Metalrax Group PLC
Consumer Durables Specialist Engineering
2008 onwards
From 2008 our operations fall into one of two new
divisions designed to offer a more appropriate
representation of our evolving activities. 04
Chairman’s Statement
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Introduction
It has been a year of considerable change, culminating in the
appointment of our new Chief Executive, Andrew Richardson,
in October. The Board has empowered Andrew, who has
successfully managed turnarounds and growth during his 20
years in manufacturing industry, to lead Metalrax through a
time of necessary strategic and structural change. 
Following the year end the conclusions of his initial strategic
review were announced and we have started to implement the
resultant actions. Further details are set out in his Review of
Strategy which follows this statement.
Results
For the year ended 31 December 2007 Metalrax Group PLC
achieved revenue of £118.6 million (2006: £120.2 million).
Adjusted profit before exceptional items and tax was 
£2.3 million (2006: £6.5 million). After exceptional items, the
Group incurred a loss before tax of £9.9 million. Adjusted
earnings per share before exceptional items were 1.26p 
(2006: 3.72p) and basic (loss)/earnings per share were (5.83p)
(2006: 3.83p) (note 7).
Net debt at 31 December 2007 stood at £ 12.5 million 
(31 December 2006: £10.7 million) representing gearing 
of 24.8% (2006: 19.7%).
Dividend
As indicated in our trading update of 16 January 2008, the
Board has resolved to implement a new, progressive and
sustainable policy whereby dividends payable by the 
Company will be covered between 2.0 and 2.5 times by its
earnings. Accordingly, following the interim dividend of 1.65
pence per share which was paid in October 2007, there will be
no final dividend payable in respect of the year ended 
31 December 2007.
Acquisitions and disposals
Following the year end, we acquired Post Glover LifeLink, Inc
(PGL), from Halma p.l.c. for a cash consideration of £3.0
million. PGL, which is based in Erlanger, Kentucky, USA, is a
world leading manufacturer of isolated electrical power
systems and electrical raceways for the medical, laboratory and
educational sectors. The acquisition is in line with Metalrax’s
new stated strategy to supplement organic growth through
selective acquisitions of complementary technologies and
companies. It is immediately earnings enhancing and has been
funded from Metalrax’s existing cash and debt facilities.
In addition, we subsequently disposed of the net assets of the
Fine Blanking business, excluding its property, debtors and
creditors, for a cash consideration of approximately £0.5
million, to Rical Limited. This sale represented an important
step in the reorganisation of our existing operations and the
elimination of loss makers.
We expect to make further acquisitions and disposals in the
future. In terms of the latter we are reviewing our remaining
high volume, low margin automotive businesses and our 
loss-making Romanian business. 
Alternative Investment Market (AIM)
In light of our plans to make acquisitions and disposals and of
the Company’s market capitalisation, the Board is proposing to
move the Company’s shares from the Main Market to AIM.
The background to this proposal is set out in my letter
accompanying this Annual Report.
The Board and Management
We have made further changes to the Board structure during
2007, consistent with our Board succession planning referred
to at the time of the interim results. 
Richard Arbuthnot resigned as Group Chief Executive on 
12 October 2007, having announced his retirement plans in
May 2007. He was succeeded by Andrew Richardson. 
“It has been a year of considerable change,
culminating in the appointment of our new 
Chief Executive, Andrew Richardson, in October.”
John Crabtree Annual Report 2007 05 Metalrax Group PLC
Following the year end William Kelly resigned as Group
Finance Director and Company Secretary by mutual consent.
The Board implemented robust interim arrangements to
manage the Company’s financial reporting and controls 
while seeking a replacement and are pleased that, with effect
from 2 April 2008, Michael Stock joins as the new Group
Finance Director. 
Reg Fort, a non-executive Director, retired after the 2007
Annual General Meeting in May. The Board is delighted that Ian
Paling joins as a new Non-Executive Director from 4 April 2008. 
In addition to these changes, since the appointment of
Andrew Richardson as Chief Executive, fourteen senior
managers have left, and nine new senior managers have been
appointed to, the Group.
People
2007 has seen continued significant change throughout the
Group and this has been well supported by our people. On
behalf of the Board I would like to express our gratitude for
their continued endeavours.
Executive Benefits
The Board believes that it is appropriate to bring the various
executive incentive plans up to date and in line with current
best practice. Mercer Limited was appointed during 2007 to
review the exisiting provisions and changes arising from that
review are explained in the accompanying letter.
Pensions
The deficit in the Metalrax defined benefit pension scheme has
increased from £3.2 million last year to £3.4 million. This
scheme has been closed to new members since 1999. The
Board remains comfortable with the current funding
arrangements for the scheme.
Advisers
Following the year end we appointed Arden Partners plc as the
Company’s stockbroker and, in conjunction with NM
Rothschild and Sons Limited who were appointed in 2007,
financial adviser. A fresh team brings new energy and expertise
that is enormously helpful in a turnaround situation and both
firms are specialists in advising companies of Metalrax’s size
and nature. 
Outlook
The Board believes that the Group is in a very sound financial
position and has significant scope for improving its financial
performance. The Group’s balance sheet remains strong with
significant property assets and headroom within its current
banking facilities to underpin recovery and growth. Cash being
generated from operations will support the financial position,
allowing appropriate investments in organic and, where
appropriate, acquisitive growth.
Within the Group’s existing varied portfolio there are a number
of good quality businesses from which to build. Management
changes, together with a strategy focused on products that
can offer improved returns and profitable growth, will allow
Metalrax to take advantage of the potential that exists within
the Group.
I am pleased to report that we have had a satisfactory start to
the current financial year and view our prospects in 2008 with
confidence. A further update on current trading will be
provided at the time of the Company’s AGM in May. 
JRA Crabtree
Chairman
14 April 2008 06
Review of Business Operations
Chief Executive’s Review of Strategy
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
“Metalrax will pursue organic growth 
through focusing on innovation in products, 
services and distribution.”
Andrew Richardson
Introduction 
In this, my first review as Chief Executive, I will present the
Company’s results for the year ended 31 December 2007.
However, I think it important that I first set out the strategic
changes I am implementing at Metalrax Group PLC.
Strategy, objectives and actions
My strategic review was initiated in October 2007 and the
conclusions were announced in January 2008. Strategy is
meaningless without action. Therefore, arising from this
review, the Board and I resolved to:
II re-organise Metalrax from three into two divisions,
Consumer Durables and Specialist Engineering:
Consumer Durables will comprise the former
Housewares division as well as the Company’s new
offices in Hong Kong and China. It is likely to account for
approximately 22% of Group revenue and will supply a
wide range of bakeware and kitchenware to the retail
and commercial catering markets; and
Specialist Engineering will consist of the former
Engineering Support Services division together with the
specialist businesses from the former Automotive division.
It is likely to account for approximately 78% of Group
revenue and will supply niche products and services to
the construction, retail and specialist automotive
markets, mainly in the UK and France. Its products and
services will be geared to solving customers’ problems,
using high calibre engineering design, development and
manufacturing, locally and internationally.
II focus on businesses that operate in niche markets, have
significant growth potential and barriers to entry, and that
can each be expected to contribute meaningful profits;
II exit businesses that currently do not meet these criteria;
II pursue organic growth through focussing on innovation in
products, services and distribution;
II establish operations overseas where appropriate; and
II supplement organic growth through selective acquisitions of
complementary technologies and companies which are
consistent with the Company’s new strategy. 
In light of the strategic review, the Board examined Metalrax’s
balance sheet and financial position. This identified:
II the potential for significant upward revaluation of the
Company’s property portfolio;
II the likelihood of write-downs of various fixed and current
assets;
II that the various intended business exits are likely to generate
cash and will also serve to enhance operating cash flow
through removing loss-making businesses; and
II that Metalrax will generate further cash from ongoing
property disposals and through a management initiative to
reduce working capital.
Actions implementing these conclusions are well underway. Annual Report 2007 07 Metalrax Group PLC
Market sectors that can deliver profitable growth and good
margins tend to be niche areas where the customer requires
specialist products, services or after sales support. They have
high barriers to entry often based on intellectual property,
technology or regulation. Sectors capable of delivering growth
will themselves have strong, independent growth drivers. The
best businesses within these sectors will have high-calibre
people and demonstrate flexibility, close attention to the
market and the ability to solve customers’ problems. 
Niche areas in which Metalrax companies will operate are likely
to be small and specialised, falling beneath the radar of bigger
engineering companies. The Group will dispose of companies
that do not operate in, or cannot migrate to, such areas in
suitable market sectors. It will focus on a limited number of
sectors displaying the characteristics described above. This
focus will be achieved by a combination of investment in
existing businesses and selective acquisition of new businesses. 
The first example of such focus is in healthcare, demonstrated
by the acquisition since the year end of Post Glover LifeLink,
Inc (PGL) which was announced on 28 January 2008. PGL,
which is based in Erlanger, Kentucky, USA, is a world-leading
manufacturer of isolated electrical power systems and electrical
raceways for the medical, laboratory and educational sectors.
It is the number two supplier in each of its primary product
markets. PGL will be part of the Specialist Engineering division
and will complement other businesses within that division that
provide products to the healthcare market. PGL also provides a
foothold in the North American healthcare market and
increases our technological capability in this sector. 
The Group’s role is to add value to its subsidiary businesses.
Value can be added by simplifying administration across the
Group, leveraging scale, providing lower-cost capital through
investment, or facilitating synergies between businesses.
Higher standards of financial reporting and analysis will drive
improved margins. Senior management and head office staff
are already engaged in a programme to ensure that all of their
activities provide added value to subsidiary businesses. 
Developing people at all levels will support the growth of our
businesses and our ability to differentiate in our chosen
sectors.
Finally the Board and I have concluded that, given the current
market capitalisation and the strategic objectives outlined
above, the Main Market no longer provides the most
appropriate market for the trading of shares in Metalrax and
that the Group’s future would be better served by moving to
AIM. Further details of this proposed move are given in the
accompanying letter from the Chairman.
AJ Richardson
Chief Executive
14 April 2008 08
Review of Business Operations
Chief Executive’s Review of Operations
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
The 2007 results are reported in line with the divisional
structure that was in place during 2007. This comprised three
divisions — Housewares, Engineering Support Services and
Automotive. Following the year end this structure has been
simplified into two divisions — Consumer Durables and
Specialist Engineering. Hence, future reporting will follow this
new structure.
Housewares
Background
Our Housewares operations produce and market the majority
of bakeware sold in the UK, together with associated ranges of
kitchen tools, to both retail and commercial markets. We are
the market leader in microwave cookware and our wine racks
are sold extensively in the UK and overseas markets. Businesses
in this division have the benefit of a good reputation and own
some very strong and well established brands. For example,
the Mermaid brand is extremely popular with professional
chefs and caterers. Its popularity is also growing in the retail
market, helped by the endorsement of celebrity chefs,
including Delia Smith on her web-site. Other brands widely
recognised by our trade customers and consumers include
LongLife, Progress, RTA, Microwise and Popware, for which we
won a prestigious industry award. We will continue to promote
these brands vigorously alongside our private label
developments for premium brands including AGA. Our retail
customers include such premier names as John Lewis
Partnership, Lakeland, Argos, IKEA, B&Q, Morrisons,
Wilkinsons Hardware Stores, Sainsbury’s, Waitrose, and House
of Fraser, plus many other high street and specialist retailers in
the UK and overseas.
Management had the foresight in 2007 to open a sourcing
office in mainland China to strengthen its existing Far East
operations, and a Sales & Marketing centre in Hong Kong.
These have contributed strongly to the Division’s ability to
develop and secure reliable, high quality, lower cost sources for
ranges of products for distribution via its wide customer base.
Further investment is planned for these facilities, including
exclusive new product introductions.
Market
The Division’s products are sold into diverse, niche markets for
use either in the home or in the professional kitchen. The
markets for this Division’s products during 2007 were steady.
Consumer spending is tightening, but our products are more
‘need to have’ rather than ‘nice to have’ and are therefore
likely to be more resilient to downturns than some other
product sectors. 
Performance
Overall the Division performed well during 2007. On reduced
revenues of £25.7 million (2006: £27.6 million) operating
profit before exceptional items improved from £1.3 million to
£1.8 million although the operating loss after exceptional
items of £0.7 million was worse than the previous year’s
operating profit after exceptional items of £2.2 million. This
improvement was driven primarily by the increased focus on
more profitable contracts with lower margin/higher volume
work being exited where necessary. A more competitive base
for future growth has been established as a result of the
achievement of appropriate and planned cost reductions.
Projects
The largest business in this Division implemented its plan to
focus on more profitable products and customers, and also
completed the restructuring of its manufacturing and product
ranges to improve its efficiency. It now occupies an enviable
niche providing high-quality bakeware products, with high
levels of availability and service, to discerning retailers and
distributors in the UK. This is achieved at competitive prices
using a combination of UK based manufacturing complemented
by high quality sourcing from lower-cost economies.
Outlook
This Division has made a satisfactory start to 2008 in line with
our expectations. Pressures on raw material prices represent a
potential risk for 2008 in terms of our ability to pass these
increases on to customers on a timely basis. Uncertainty
surrounding the performance of the UK economy could also
affect our customers’ retail sales during the year. However,
new management has been appointed before and after the
year-end and I am confident that they will pursue opportunities
to achieve growth from operational and marketing initiatives. 
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 09 Metalrax Group PLC
Pictured:
GW International non stick cake tin.
Housewares
“The largest business in this division now occupies an
enviable niche, providing high quality bakeware
products, with outstanding levels of customer service, 
to discerning retailers and distributors in the UK.” 10
Review of Business Operations
Chief Executive’s Review of Operations continued
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Engineering Support Services
Background
The Engineering Support Services Division comprises 11 small
businesses, each focused on different products and/or routes
to market. Products ranged from structural steel and
architectural steel through metal shelving and mezzanine
floors, consumable tools, to vandal proof containers and
painted steel coil. A number of high profile projects were
completed in 2007, including mobile shelving and picture
racking installations for the National Museum and Gallery of
Wales and the Herbert Museum in Coventry. Storage and
handling equipment was also installed in numerous blue chip
high street stockrooms. A variety of bespoke trailers were
designed and manufactured for servicing Eurostar at St.
Pancras. Staircases and support steelwork were provided on
the Sir Robert McAlpine site at Highbury comprising 150
prestigious apartments. Various other balconies and staircases
were commissioned at premier retail developments including
Westfield in Derby.
Market
The end market for most of the products in this Division is
driven by construction of new buildings, the refurbishment and
refitting of existing buildings, and the retail sector. Products
from this Division are sold almost exclusively in the UK, a
market which performed reasonably well during 2007.
However, Metalrax companies in this segment have not
performed as well as their underlying markets.
Performance
Divisional revenue (including intra-Group) was flat at 
£54.3 million (2006: £54.2 million). Operating profit (before
exceptional items) reduced significantly to £1.3 million 
(2006: £3.5 million). The operating loss after exceptional items
was £2.0 million (2006: £3.4 million operating profit after
exceptional items). The decline in profit despite the 
unchanged revenue was due to margins being squeezed by
product pricing and cost. A large part of this profit decline is
attributed to the consumable tools, metal shelving and
structural steel businesses, while the materials handling and
commercial bearings businesses showed improved
performance during the year.
Projects
The previously reported installation of a new paint line at
Fabricote progressed more slowly than anticipated. However
consolidation of Fabricote with Cooper Coated Coil will still
take place during the first half of 2008.
The initiative to rebrand the Division as MRX Support Services
has been cancelled as a result of the revised divisional structure
described above.
Outlook
Following the year-end there have been a number of changes
to the management structure governing the businesses in this
Division. These have been designed to focus on opportunities
for growth across the markets in which these companies
operate. In the medium term many of the businesses are
expected to demonstrate improvements in performance.
However, in the short term these businesses are being
managed very closely, and further changes are being made, to
deliver their potential. Anticipated increases in steel price
combined with additional competitive pressures and a
potential slowdown in retail could add further challenges.
Meanwhile the start to the current financial year is broadly in
line with the performance in 2007.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 11 Metalrax Group PLC
Engineering Support Services
“Following the year-end there have been a number of
changes to the management structure governing the
companies in this division. These have been designed to
focus on opportunities for growth across the markets in
which these companies operate.”
Pictured:
A special adaptation of a Stackright
anti-vandal cabin. 12
Review of Business Operations
Chief Executive’s Review of Operations continued
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Automotive
Background
The Automotive Division focuses on press work, metal
manipulation, fabrication and assemblies for a broad spread 
of customers. These range from high-volume car
manufacturers through commercial, agricultural and
construction vehicles, to low-volume specialist car
manufacturers. Customers in 2007 included Jaguar, Land
Rover, General Motors, JCB, TRW and Arvin.
Market
During the last few years, vehicle manufacturers and many
first-tier component suppliers have moved production out of
the UK. This trend undoubtedly affected the Group’s
automotive companies in terms of both volume and margin
performance. The focus during 2007 therefore remained on
consolidation of operations rather than investment for growth.
In addition, overstocking by some vehicle manufacturers had a
disproportionate impact on the Automotive Division as
schedules were reduced during the year.
Performance
Divisional revenue over the year as a whole was steady at
£42.4 million (2006: £42.5 million). Operating profit before
exceptional items was down at £0.3 million (2006: £2.2
million), while after exceptional items the Division suffered an
operating loss of £6.2 million (2006: £1.1 million operating
profit after exceptional items).
In addition to the impact of difficult market conditions
described above, the acquisition of Belsize and its integration
into the Fine Blanking operations had a significant, adverse
impact on the management and performance of the
Automotive Division overall. Furthermore, integration of
Kenham Tools & Pressings and Prescott Powell into MRX
Automotive in Smethwick was delayed significantly as another
consequence of the Fine Blanking problems.
The Division’s specialist businesses that supply lower volume
customers improved during the year. 
Outlook
Following the year end and as part of my review, the Group
announced its intention to exit the high-volume, low margin
automotive businesses that are unlikely to make a meaningful
contribution to future Group profits. The Fine Blanking business
was subsequently sold for £0.5 million, as announced on 14
February 2008, with the Group retaining ownership of the
associated property and certain working capital components .
The elimination of the losses incurred by this business will have
a significant positive impact on the Division and Group’s future
performance. Our remaining high-volume, low margin
automotive businesses in the UK, together with our loss-making
Romanian business, remain under close scrutiny in order to
maximise performance as quickly as possible. 
I expect the more focused low-volume, niche automotive
businesses to be capable of growth as they reduce costs whilst
introducing innovation in customer service and new products.
They have had a satisfactory start to the current financial year
in line with our expectations.  Annual Report 2007 13 Metalrax Group PLC
Automotive
“I expect the more focused low-volume, niche
automotive businesses to be capable of growth.”
Pictured:
Automotive parts made by the process of
deep drawing and wall ironing. 14
Review of Business Operations
Chief Executive’s Review of Operations continued
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Property revaluation
As part of the strategic review following my appointment as
Chief Executive we reviewed the valuation of the Group’s
property portfolio. Based on an independent survey by AtisReal
Limited, the Board has increased the book value of the Group’s
freehold and leasehold properties by approximately £11.7
million. Further details of the revaluation are set out in note 10
to the accounts.
Exceptional items
During the year the Group incurred exceptional charges and
profits amounting to a net charge of £12.2 million before tax.
These items related primarily to: 
II the integration of Belsize into Fine Blanking and the
associated production inefficiencies, together with the
subsequent disposal of the business;
II re-organisation and re-structuring costs at GW International,
MRX Automotive, Cooper Coated Coil and Fabricote, and
MRX Romania;
II write downs of various fixed assets and slow- moving
inventories; 
II the costs of settling disputes on two major construction
contracts involving Down and Francis in light of independent
professional advice which I sought; and
II profits arising on the sale of former operating sites.
Further details of these exceptional items are set out in note 3
to the accounts.
Working capital
We are making progress in reducing the Group’s working 
capital having reduced gross inventory levels since 31 December
2006 by £2.8 million to £16.7 million and trade and other
receivables (before provisions) by £3.2 million. Bank loans and
overdrafts at the year end amounted to £12.0 million, which
provides the Group with significant headroom on its existing
banking facilities.
People
People at all levels of the Group have become accustomed to
change. They have greeted my arrival and the consequent
turbulent environment with grace and support. I would like to
record my appreciation for this. 
An essential part of the Group’s future success will be the
fundamental change in culture and focus away from defence
toward growth. Management changes throughout the Group
have been made and will continue as necessary. I am confident
that people will support necessary changes to facilitate
progressive and profitable growth.
We have decided that the existing incentive plans for Directors
and senior Executives should be amended for 2008 onward so
that they are aligned with our strategy and also better reflect
current best practice. Further details of the proposed chages
are included with the accompanying letter from the Chairman.
Current trading and prospects 
Against the backdrop of an uncertain economy, our
strengthened management team is implementing our new
strategy and driving performance improvements primarily
through controlling costs and improving efficiencies. We have
already disposed of the loss making Fine Blanking business and
are making progress in reducing the losses in other loss-
making operations. We are also achieving organic profit
growth in our other businesses which should cushion the
impact on the Group of the expected increase in steel prices.
The current year has started satisfactorily and I am confident
that the strategic and the operational changes we are making
will result in an improved performance overall during 2008 
and thereafter. 
AJ Richardson
Chief Executive
14 April 2008 Annual Report 2007 15 Metalrax Group PLC
Review of Business Operations
Operating environments, risks and uncertainties
The Group has identified a number of risks and uncertainties
which could have a material impact on its long term
performance. These risks together with the management
policies and procedures put in place to mitigate them are set out
below and are also discussed in the Corporate Governance
Statement.
Macro-economic and competition
The Group operated in a number of sectors defined broadly by
the three historic divisions: Housewares, Specialist Engineering
and Automotive. It operates predominantly in the UK and
Europe.  Thus the economic drivers for growth are reasonably
well spread over a number of sectors with no over-reliance on
any one. The Group has identified that the high-volume
automotive sector is unlikely to meet future growth objectives
and it has already been announced that the Group will exit this
sector.  Future acquisition strategy (see below) takes account of
the need to maintain a balanced approach to the economic
drivers underlying the business performance.
The markets in which the Group’s businesses operate are highly
competitive and there is a need to respond effectively to the
demands of customers and the activities of competitors while
maintaining a competitive cost base. In order to achieve a
speedy response, the task of analysing threats and identifying
appropriate mitigating actions is devolved to the divisional and
operating business level. Competition from product sourced in
China and other South-East Asian countries is seen as
particularly significant for the Housewares division and during
2007 work has been undertaken to strengthen that division’s
ability to access equivalent product and so maintain a
competitive pricing/quality position.
Raw material prices
The Group’s principal raw material, across all three divisions, is
steel. Movements in steel prices are driven by global market
conditions outside the control of the Group and substantial
movements in these prices could have an adverse impact on the
Group’s results. Where possible contracts are negotiated to
include raw material escalation clauses to enable this risk to be
transferred, at least in part, to the customer.
Acquisitions
While organic growth is key to the future of the business the
acquisition of new businesses is also important: to drive growth;
to improve overall return on assets; and to replace activities in
areas where there are seen to be limited future prospects with
those where the opportunities are greater and more in line with
the Group’s strategic thinking.
All acquisition brings with it risks, ranging from buying
inappropriate companies, the diversion of management resource
during the acquisition process, and post acquisition integration
problems. The Group has put in place formal acquisition criteria
and has improved the resource available to manage this process.
Financial and treasury risk
The Group does not use complex derivative financial instruments.
There are limited exposures to transactions in foreign currencies
(predominantly US Dollar and Euro) and, where significant, these
are hedged by way of forward contracts. There is limited
exposure to other treasury risks — this is discussed more fully in
Note 26.
Pensions deficit
The Group has a defined benefit scheme which is closed to new
members but which, in common with the vast majority of similar
schemes in the UK, is operating with an IAS 19 deficit. At
31 December 2007 this deficit amounted to £3.4 million (2006:
£3.2 million).
At the beginning of 2007 the Group increased its contributions
substantially to help reduce the deficit more quickly and there is
continuing discussion between the Board and the Trustees to
ensure that all parties understand the risks. The Group’s cashflow
allows the situation to be adequately managed. 
The small increase in deficit during the year, despite the accelerated
company contributions, has arisen because of under performance
of return on scheme assets together with changes to the
underlying actuarial assumptions which drive the value of the
scheme’ s liabilities. These changes, including in particular a
strengthening of the mortality assumption and changes to the
discount rate, are in line with current actuarial recommendations.
Resources
The main resources available to the Group are:
Employees who have an extensive knowledge of the markets in
which their individual businesses operate and so can identify and
react to opportunities and risk in a timely manner. There are
policies in place to ensure that appropriate skills are attracted,
trained and retained to maintain this skills base.
A strong portfolio of brands, each of which has a strong positive
presence in its associated market.
“While organic growth is key to the future of
the business the acquisition of new businesses
is also important.” 16
Review of Business Operations
Corporate and Social Responsibility
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
The Board believes that the long-term future of the Group is
best served by acknowledging the interests of all stakeholders:
our customers, members of staff, shareholders and the wider
community. The Group is committed to its corporate social
responsibility activities and will continue to report on them.
The Group continues to implement a range of policies which
are posted on the Group’s website.
II Ethics
The Group insists that its business activities are conducted in
accordance with high standards. The ethics policy statement
provides a framework for achievement of those standards.
II Employees
The Group recognises that skilled and motivated teams of
people are essential to deliver success. It has in place policies
and procedures dealing with recruitment, induction, conduct
and personal development in employment. The overriding
aims are to ensure fairness, consistency and opportunity in
relationships between people at all levels. Further, it has
published employee handbooks which are regularly reviewed
and updated where appropriate.
The Group believes in equal opportunities and non-
discrimination throughout the employment process. In
particular:
II There is compliance with the obligations of the 
Disability Discrimination Act. Appropriately qualified 
disabled applicants are given the same consideration as 
any other applicant for suitable vacancies and if an 
existing member of staff becomes disabled every effort 
is made to continue their employment. Support for this
includes training, adaption of the working environment
and, where necessary, redeployment. All property
modification and development plans give consideration
to their suitability for disabled personnel.
II Job applications are welcomed from all sections of the 
community irrespective of age, sex, race, colour, ethnic 
background or gender-orientation. The overriding 
issue in all recruitment is to find the best applicant 
bringing the best set of skills and abilities to carry out 
the required role and help grow the business.
II When vacancies arise, existing employees are
considered for promotion to the new position before
any external recruitment.
Skills are vital to the success of the business and training
plays a crucial role in their development and reinforcement;
in ensuring compliance with good standards and policies;
and in helping to develop the employee as an individual. In
particular:
II There is a process of induction training throughout the 
Group’s businesses to ensure awareness of job 
requirements; key employment and policy issues; and 
Health and Safety processes.
II Training policies and procedures are usually incorporated
within businesses’ quality management systems.
II Several operating units have formed strong links with
local colleges and training providers.
II Communication
Divisional and Group meetings are held regularly to share
information and to seek out mutual opportunities. The
Group issues a newsletter at regular intervals to keep all
employees informed of developments and sales
opportunities. 
II Customers
Customer satisfaction is the key to business success. Quality
of product, delivery and service is paramount. The Group
recognises the importance of formal quality management
systems and has a rolling programme for all companies to
achieve ISO 9001 or enhanced standards such as
ISO/TS16949 for the automotive sector. 
II Suppliers
All Group companies observe strict guidelines when sourcing
raw material or products. Suppliers of imported materials are
subject to additional controls regarding environmental and
employment aspects of the business. Where required the
Group employs independent third party bodies to monitor
their activities.
“The Group recognises that skilled and
motivated teams of people are essential 
to deliver success.” Annual Report 2007 17 Metalrax Group PLC
II Environment
The Group has a philosophy of respect for the environment
and is committed to a policy of complying with
environmental legislation, associated regulations,
authorisations or approved codes of practice. The Group
recognises the importance of sustainable development,
applying the following guiding principles:
II Take account of the views of all stakeholders.
II Embrace continual improvement methodology.
II Prevent unauthorised discharges to the environment 
and minimise the polluting effects of commercial 
activities.
II Comply with conditions established by enforcing
agencies.
II Develop an environmental management system that 
is acceptable to the stakeholders. This may require
customer or third party approvals to a recognised 
scheme such as EMAS or ISO14001.
II Source raw materials from verifiable responsible 
sources.
II Provide resources to achieve environmental goals.
II Minimise the use of raw materials and conserve 
energy.
II Reduce waste wherever possible.
II Co-operate with customers and suppliers to promote 
environmental awareness at all levels within the
supply chain.
II Review performance and communicate findings to 
stakeholders.
During the year the Group has achieved the following:
II Two more operating businesses have achieved ISO 
14001 status.
II Sustainable timber is used in its Housewares division 
wherever possible under the scheme verified by the 
Forestry Stewardship Council.
II The in-progress consolidation of the Cooper Coated 
Coil and Fabricote businesses onto one site noted in 
the Chief Executive’s review will lead to significant 
overall improvements in the abatement technology 
used to reduce emissions to atmosphere. It will also 
lead to a substantial improvement in overall energy 
efficiency.
The Board recognises that this is an area which requires
further attention and a formal Group-wide system of
reporting and managing environmental impacts is being
developed for implementation during 2008.
II Health and Safety
The health and safety of our employees and the wider public
is paramount. To help in delivering an acceptable position
the Group has in place a formal Health and Safety Policy
Manual which sets minimum standards that operating
businesses must achieve. There is also a Vehicle Users
Handbook setting out the requirements on personnel using
Company vehicles.
This is an area where there is no room for complacency and
where there must be a constant effort to improve
performance. Two initiatives to help deliver this are:
II Regular risk review meetings involving operating unit 
management, external consultants and the Quality 
Director (who coordinates Group Health and Safety 
matters). Their aim is to identify issues across a range of 
risk areas including Health and Safety and to 
implement risk minimisation and control processes.
II A formal quarterly reporting process covering Health 
and Safety, dealing with historic accident statistics; risk 
assessments and reduction plans; and 
training/communication initiatives. This allows better 
monitoring of performance and management for 
improvement. 18 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Review of Business Operations
Financial review
Results summary
The results have been prepared under international Financial
Reporting Standards (“IFRS”).
Revenues for the year ended 31 December 2007 at £118.6
million were 1.3% lower than in the previous year. The losses
for the year before taxation were £9.9 million against a profit
for 2006 of £6.1 million. Profits before exceptional items at
£2.3 million (2006: £6.5 million) were in line with market
expectations. Further details of divisional performances are set
out in the Chief Executive’s Review of Operations.
Exceptional items
During the year the Group incurred four main types of
exceptional item:
The sales of surplus properties produced a profit on sale of
£1.5 million.
Reorganisation costs totalling £9.6 million have been incurred in
the restructuring of various elements of the Group. The largest
element relates to the volume automotive businesses, including
the cost of completing the move of Belsize to Bacol Fine
Blanking; the subsequent exiting of fine blanking manufacturing
in the Group; and restructuring costs in the Romanian
operations. Some reorganisation costs were also incurred in
other Group businesses including central management.
The Group has incurred losses totalling £1.9 million on
negotiation of a settlement on old long term contracts,
including associated legal and professional fees.
As part of its business review the Group has introduced a more
systematic approach to identifying excess stock. This, together
with some amounts arising from commercial and strategic
changes, has resulted in an increase in stock provisions
totalling £2.2 million across all Group operations.
Taxation
The effective tax rate of 29.8% is very close to the standard
rate of 30%. Expenses not deductible for tax purposes (mainly
Romanian losses) and deferred tax not recognised were offset
by capital profits relieved by indexation and by a small prior
period adjustment.
(Loss)/earnings per share
Basic and diluted (loss)/earnings per share were (5.83p)
compared to 3.83p in the previous year. There are no dilutive
effects associated with share option granted under the 2007
Sharesave scheme during the year since these options are out-
of-the-money.
Dividend and dividend policy
As highlighted in the Chairman’s statement, the Group is to
implement a progressive and sustainable policy whereby
dividends should represent between 40% and 50% of net
profit before one-off items including goodwill impairment.
In line with this policy the Board does not propose to pay a
final dividend, leaving the total dividend per share in respect of
2007 at 1.65p (2006: 5.40p).
The dividend per share paid in 2007 (comprising the 2006 final
dividend and 2007 interim dividend) was 5.40p (2006: 5.40p).
Cash flow and capital investment
Bank overdrafts and loans at 31 December 2007 stood at
£12.0 million compared to £9.9 million for the previous year.
The debt increased in the year because, while there was £4.7
million cash generated by operations, it did not cover the
dividend payments of £6.5 million. The Group has total
unsecured banking facilities of £31.0 million.
Property revaluation
In 2006 the Group reported that the market value of the
Group’s freehold properties was approximately £11.0 million in
excess of their book value. A formal valuation exercise was
carried out as at 31 December 2007 on all UK property which
led to an increase in the carrying value of £11.7 million. Full
details of this valuation are contained in note 10.
Financial position
The financial position at 31 December 2007 can be
summarised as follows:
Assets Liabilities Net assets
£000 £000 £000
Property, plant and equipment 36,356 — 36,356 
Goodwill and intangible assets 11,381 — 11,381 
Current assets and liabilities 41,345 (23,017) 18,328 
Post-retirement obligations — (3,412) (3,412)
Deferred tax 1,609 (1,143) 466
Total before net debt 90,691 (27,572) 63,119
Net debt — (12,531) (12,531)
Total as at 31 December 2007 90,691 (40,103) 50,588
Total as at 31 December 2006 93,742 (39,443) 54,299
“The Group is to implement a new progressive 
and sustainable dividend policy.” Annual Report 2007 19 Metalrax Group PLC
Net assets fell from £54.3 million to £50.6 million. The net
exceptional charge of £12.2 million before tax (note 3) was
broadly balanced by the revaluation of land and buildings of
£11.7 million before tax (note 10). The prime reason for the
£3.7 million fall in net assets was that dividend payments in
the year of £6.5 million were not matched by profit.
Key performance indicators (KPIs)
Historically the Group monitored its overall performance based
on Group cashflow and a limited number of financial KPIs
focusing on pre-exceptional profitability and return on assets
as set out below:
2007 2006
Operating margin
Housewares 7.1% 4.8%
Engineering Support Services 2.3% 6.4%
Automotive 0.7% 5.2%
Return on net operating assets
Housewares 10.7% 6.6%
Engineering Support Services 4.5% 13.5%
Automotive 1.3% 8.7%
Individual operating units were managed using additional
operation-specific data relating to security of activity and
working capital management, such as cash generation, stock
turn and debtor days, summarised by division as follows:
Stockturn (days) 31 Dec 31 Dec
2007 2006
Housewares 77 129
Engineering Support Services 49 54
Automotive 54 61
Debtor days 31 Dec 31 Dec
2007 2006
Housewares 53 59
Engineering Support Services 76 84
Automotive 52 60
The Chief Executive’s strategic review has identified a number
of key performance areas where targets either have or are
being set and where future reporting will be used to monitor
performance, both at Group and at Divisional level. These
future KPI’s will include:
Non-financial KPIs
Health and safety incident reduction statistics
Measures of environmental impacts
Financial KPIs
Revenue growth
Gross margin
Operating profit growth
Return on sales
Return on net operating assets
Return on total invested capital (ROTIC) (Group only)
Cash generated to operating profit
Acquisitions and disposals
During the year to 31 December 2007 the Group neither
acquired nor disposed of any businesses.
On 25 January 2008 the Group acquired Post Glover LifeLink,
Inc (PGL) for a cash consideration of US Dollar 6.0 million
(£3.0m). PGL, a Cincinnati based manufacturer of power
supply equipment for the healthcare market, represents the
first step in the Group’s strategy of expanding into small
specialist niche areas.
On 14 February 2008 the Group disposed of the business and
certain assets of Bacol Fine Blanking for a cash consideration of
£0.5 million. Again this is in line with the strategy of exiting
non-niche business areas.
Going concern
After making enquiries the Directors have a reasonable
expectation that the Company and the Group have adequate
resources to continue in operational existence for the
foreseeable future. For this reason they continue to adopt the
going concern basis in preparing the financial statements.
Cautionary note
This Review of Business Operations has been prepared solely to
provide additional information to shareholders to allow them
to assess the Company’s strategies and the potential for those
strategies to succeed. It should not be relied on by any other
party or for any other purpose.
It contains certain forward-looking statements, made by the
Directors in good faith based on the information available to
them up to the time of their approval of this report. Such
statements should be treated with caution due to the inherent
uncertainties, including both economic and business risk
factors, underlying any such forward-looking information.
MJ Stock
Group Finance Director
14 April 2008 20
Board of Directors
John RA Crabtree 
aged 58
John is the Non-Executive Chairman 
and the Chairman of the Nomination
Committee. He was formerly senior partner
of Wragge & Co. the Birmingham-based
corporate law firm. He is Non-Executive
Chairman of SLR Holdings Ltd, Claimar Care
Group plc and Birmingham Hippodrome
Theatre Trust. He is also a Director of
Staffline Recruitment Plc, Advantage West
Midlands, Warwick Racecourse Company Ltd
and President of the Birmingham Chamber
of Commerce. He was appointed to the
Board in September 2003.
Andrew J Richardson*
aged 43
Joined Metalrax in October 2007 as the new
Group Chief Executive. Previously the
Divisional Chief Executive of Water
Management at Halma p.l.c., Andrew
started his career with Rover Group and has
worked with companies including Webasto
Roof Systems, Automotive Products, and
Mars confectionary.
Michael J Stock*
aged 43
Joined the Group in April 2008 as new
Group Finance Director. Previously Finance
Director for Premier Farnell plc (Europe &
Asia Pacific), Michael has worked with
companies including Ingersoll Rand Security
Technologies and the engineering division of
Interserve plc.
John K Adcock 
aged 60
John is the Senior Non-Executive Director
and Chairman of the Remuneration
Committee. He held a number of senior
positions with HSBC Holdings plc until he
joined the Group Board in 2002 as a Non-
Executive Director.
Andrew P Pearson 
aged 49
Joined the Group in January 2006 as Non-
Executive Director and from the 2006 AGM
became the Chairman of the Audit
Committee. He is a Chartered Accountant.
From 1990 to 2005 he was a partner with
KPMG specialising in advising on business
transactions. Since retiring in 2005, he has
been an active investor in several early-stage
private growth companies.
Ian H Paling
aged 56
Ian Paling was CEO of Corin Group PLC until
the end of 2007, having been with the
Company through private ownership and
then leading a highly successful IPO on the
main market of the LSE in May 2002. Whilst
at Corin, Ian was instrumental in securing
high profile distribution agreements, setting
up profitable overseas subsidiaries and
directing acquisition strategy. Throughout his
career he has been involved in manufacturing
environments and will bring a wealth of
relevant business experience to Metalrax.
Pictured:
01 John Crabtree — Chairman
02 Andrew Richardson — Chief Executive
03 Michael Stock — Group Finance Director
04 John Adcock
05 Andrew Pearson
06 Ian Paling
01
02
03
04
05
06
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
* Also a member of the Executive Board. 01
02
03
04
Annual Report 2007 21 Metalrax Group PLC
Executive Board
Garry H Gresham 
aged 50
Joined George Wilkinson (Burnley) Limited in
1990, was promoted to marketing Director
in 1992, and appointed Chief Executive in
2001. He is now Chief Executive of the
Consumer Durables division.
Mike Smith 
aged 43
Joined the Group in September 2007. An
engineering graduate of the University of
Newcastle upon Tyne, he has held
operational and commercial roles in the
aerospace and automotive industries. He is a
Divisional Chief Executive within the
Specialist Engineering division focusing both
on developing existing operations and
acquiring businesses in line with the Group’s
strategic objectives.
Ian Shergold
aged 44
Ian joined Metalrax in April 2008 as
Divisional Chief Executive within the
Specialist Engineering division. Previously
General Manager for Huber & Suhner Inc,
Ian has extensive exerience in electronics and
in managing overseas businesses in the US
and mainland Europe. Previous to Huber &
Suhner, Ian worked for Raychem Plc.
Peter Mason
aged 56
Joined the Group in November 2007. A
qualified cost and management accountant,
after 17 years with GEC he has spent the last
20 years as Finance Director of a number of
SME businesses requiring turn round. He is
Group Financial Analyst.
Pictured:
01 Garrry Greshan
02 Mike Smith
03 Ian Shergold
04 Peter Mason Directors and Advisers
22 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Directors
John RA Crabtree,* Chairman
Andrew J Richardson, Chief Executive 
(from 15 October 2007)
Michael J Stock, Group Finance Director
(from 2 April 2008)
Richard E Arbuthnot, Chief Executive
(to 12 October 2007)
William D Kelly, Group Finance Director 
(to 15 January 2008)
John K Adcock*
Andrew P Pearson*
Ian H Paling*
(from 4 April 2008)
Reginald Fort*
(to 23 May 2007)
* Non-Executive
Company Secretary
William D Kelly Group Finance Director 
(to 15 January 2008)
Darren J Farrimond
(from 15 January 2008)
Registered Office
Ardath Road
Kings Norton
Birmingham 
B38 9PN
Telephone: 0121 433 3444
Facsimile: 0121 433 3325
E-mail: info@metalraxgroup.co.uk
www.metalraxgroup.co.uk
Registered in England 793639 Annual Report 2007 23 Metalrax Group PLC
Auditors
Deloitte & Touche LLP
Four Brindleyplace
Birmingham 
B1 2HZ
Financial Advisers
N M Rothschild & Sons
67 Temple Row
Birmingham 
B2 5LS
and
Arden Partners
Nicholas House
3 Laurence Pountney Hill
London
EC4R 0EU
(from 11 January 2008)
Solicitors
HBJ Gateley Wareing LLP
One Eleven 
Edmund Street
Birmingham 
B3 2HJ
Principal Bankers
National Westminster Bank PLC
21 Digbeth
Birmingham 
B5 6BL
HSBC Bank plc
130 New Street
Birmingham
B2 4JU
Registrars
Computershare Investor Services PLC
P .O. Box 82
The Pavilions
Bridgwater Road
Bristol 
BS99 7NH
Dedicated Shareholder enquiries:
0870 707 1179
Financial PR
Smithfield Consultants Ltd
10 Aldergate Street
London 
EC1A 4HJ
Brokers
Arbuthnot Securities
20 Ropemaker Street
London 
EC2Y 9AR
(to 11 January 2008)
Arden Partners
Nicholas House
3 Laurence Pountney Hill
London
EC4R 0EU
(from 11 January 2008)
Remuneration Consultants
Mercers Limited
Tower Place
London
EC3R 5BU 24
Report of the Directors
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
The Directors present the audited accounts of the Group for
the year ended 31 December 2007.
Principal activities
The principal activities of the Group have been split into three
business segments as follows:
II Housewares — produces and markets bakeware, together
with associated ranges of kitchen tools to both retail and
commercial markets in the UK and internationally.
II Engineering Support Services — provides surface coated
metals, architectural, primary and secondary steelwork,
mezzanine flooring and storage equipment and also
distribution of tools, fasteners and janitorial products.
II Automotive — precision manufacturing activities providing
supplies worldwide to automotive, telecommunications, off-
road vehicles, enclosure hardware and brewery bar display
markets.
From 1 January 2008 the Group has been restructured into
two new segments:
II Consumer Durables — contains the former Housewares
operations.
II Specialist Engineering — comprises the former Engineering
Support Services and Automotive businesses.
Business review
The Company is required to set out in this report an enhanced
business review of the Group for the year ended 31 December
2007 which includes future developments. This can be found
in the Review of Business Operations on pages 6 to 19.
Dividends
The Directors recommend that no final dividend be paid in
respect of the year ended 31 December 2007. The interim
dividend of 1.65p per ordinary share paid on 26 October 2007
therefore comprises the total dividend in respect of the year
(2006: 5.4p).
The dividend per share paid in 2007 (comprising the 2006 final
dividend and the 2007 interim dividend) was 5.40p (2006:
5.40p).
Directors
The names of the present Directors are shown on pages 20
and 22. They all held office throughout the year except for AJ
Richardson who was appointed Chief Executive on 15 October
2007, MJ Stock (appointed 2 April 2008) and IH Paling
(appointed 4 April 2008). 
On 15 January 2008 WD Kelly resigned as a Director and as
Company Secretary.
Details of Directors’ shareholdings and service agreements are
disclosed in the Directors’ Remuneration Report.
At the Annual General Meeting the Director retiring by
rotation will be AP Pearson, who has no service agreement. In
addition AJ Richardson who was appointed during the year,
together with MJ Stock and I Paling who were appointed after
the year end, will seek election.
Substantial shareholdings
The Company has been notified or is aware of the following
substantial holdings of ordinary shares at 25 March 2007 being
not more than one month prior to the date of the notice of
the Annual General Meeting.
Number of % of issued
Ordinary shares Capital
Schroders 5,625,956 4.69
AXA 5,943,800 4.96
Henderson 6,136,563 5.12
C.K. Coombs 6,126,962 5.11
Arlington Capital Investors 8,405,300 7.01
Gartmore 6,879,282 5.74
Lowland Investment 3,788,679 3.16
Fixed assets
The Directors are of the opinion that, following the revaluation
of freehold and leasehold properties as at 31 December 2007
(see note 10) there is no significant difference between their
market value and their carrying value. Annual Report 2007 25 Metalrax Group PLC
Payment of creditors
While not following any recognised code or standard, the
Group policy on payment of all creditors is to abide by the
terms of payment agreed with relevant suppliers. At
31 December 2007 the trade creditors represented 67 days
(2006: 65 days) in relation to the average amounts invoiced by
suppliers.
Capital structure
To the extent the Directors consider applicable or material, the
disclosures required by the Takeovers Directive have been
included in notes 21 and 22.
Charitable donations
Donations to charitable organisations consisted of £5,618
(2006: £4,050) for local charities, and £1,000 (2006: £2,100)
for people with disabilities.
Directors’ Statement as to disclosure of information 
to Auditors
The Directors who were members of the Board at the time of
approving the Report of the Directors are listed on page 22.
Having made enquiries of fellow Directors and of the
Company’s Auditors, each of these Directors confirms that:
II to the best of each Director’s knowledge and belief, there is
no information relevant to the preparation of their report of
which the Company’s Auditors are unaware, and
II each Director has taken all the steps a Director might
reasonably be expected to have taken to be aware of the
relevant audit information and to establish that the
Company’s Auditors are aware of that information.
The above is in accordance with the provisions of S.234 ZA of
the Companies Act 1985.
Auditors
Deloitte & Touche LLP are willing to continue in office as
Auditors and a resolution to reappoint them will be proposed
at the Annual General Meeting.
Annual General Meeting
Shareholders will be asked to approve as Special Business
(Resolutions 9 and 10) amendments to the Executive Share
Option Plan and the Long Term Incentive Plan for Directors and
senior management. Further details are set out in the
Chairman’s letter which accompanies this Annual Report.
The authority to allot unissued Ordinary shares was approved
at the Annual General Meeting held in 2005 and will expire on
22 May 2010. The Directors will be seeking approval (as
Resolution 11) for the annual renewal of the Directors’
authority to allot shares for cash.
Shareholders will also be asked to approve as Special Business
at the Annual General Meeting a resolution authorising the
Directors to make market purchases of the Company’s shares
(Resolution 12). This has become routine business at the
Annual General Meeting of many public companies.
Whilst the Directors have no current intention to purchase any
Ordinary shares of the Company, they consider it desirable to
obtain authorisation from the shareholders which would
enable them to act swiftly to make purchases if earnings per
share would thereby be increased and if they considered such
action to be in the best interests of the shareholders generally.
The maximum price which may be paid for each share is an
amount equal to 105% of the average of the middle market
quotations for an Ordinary share of the Company derived from
the Stock Exchange Daily Official List for each of the five
business days immediately preceding the day on which the
Ordinary share is purchased. The minimum price will be 5p.
The power will be limited to purchasing 12,000,000 shares
being approximately 10% of the total Ordinary shares in issue
at the date hereof and will expire at the next Annual General
Meeting of the Company or, if earlier, fifteen months after the
resolution is passed.
Resolutions 9 and 10 are ordinary resolutions while resolutions
11 and 12 are special resolutions.
On behalf of the Board
DJ Farrimond
Company Secretary
14 April 2008 Corporate Governance
26 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
The Company is committed to the principles of corporate
governance contained in the Combined Code on Corporate
Governance that was issued in 2006 by the Financial Reporting
Council (‘the Code’) for which the Board is accountable to
shareholders.
Statement of compliance with the Combined Code
Throughout the year ended 31 December 2007, the Company
has been in compliance with the Code provisions set out in
section 1 of the Code.
Application of the principles
The Company has applied the main and supporting principles
set out in section 1 of the Code in a manner the Board
considers appropriate. The Group organisation, its business
activities, and its financial structure are not complicated.
Direction of the Group relies not only on formal Board
meetings but also on day-to-day contact amongst and
between executive Directors and the management of
operating divisions and businesses.
The Non-Executive Directors are appointed to provide a
balance at Board meetings and to bring their knowledge and
experience to help in setting objectives and resolving problems.
The Board considers that the Non-Executive Directors are
independent and free from business and other relationships
that could interfere with their exercise of independent
judgement. The Board further believes that any shareholdings
of the Non-Executive Directors serve to align their interests
with those of the Shareholders. Each Non-Executive Director is
subject to re-election at least every three years.
Composition of the Board
The Board currently includes four independent Non-Executive
Directors, being JRA Crabtree who is also the Chairman of the
Nomination Committee; JK Adcock who is the Chairman of
the Remuneration Committee; AP Pearson Chairman of the
Audit Committee and IH Paling who was appointed on 4 April
2008. R Fort retired 23 May 2007 and JK Adcock assumed the
role of senior independent Non-Executive Director. At 
31 December 2007 there were two executive Directors,
AJ Richardson, appointed Chief Executive on 15 October 2007,
and WD Kelly, Group Finance Director and Company Secretary.
WD Kelly resigned on 15 January 2008, and has been replaced
by MJ Stock with effect from 2 April 2008.
The Chairman, JRA Crabtree, has primary responsibility for
running the Board and devotes such time to his role as is
necessary to properly discharge his duties. The Chief Executive,
AJ Richardson, has executive responsibility for delivering the
Group’s strategy and achieving operational and financial goals.
Board effectiveness
As required by the Code, the Board conducts annual evaluations
of its own performance. The results of the process were
analysed and evaluated by the Chairman. The conclusion drawn
from the process was that the Board had performed effectively.
The Board employed a similar process to review the performance
of each individual committee. The Board reached the conclusion
that each Board committee had performed effectively. During
the year the Chairman met with the Non-Executive Directors
without the executive Directors being present.
Operation of the Board
The Board meets at least five times per annum and convenes
additional meetings to consider matters that are time critical.
Additional meetings are held annually to consider and review
strategy and opportunities arising. Each meeting is supported
by a full agenda and supporting papers distributed prior to 
the meeting.
The Board operates to oversee the Group’s activities and as a
whole decides upon dividend policy, acquisition and disposal
strategy and authorises major capital expenditure and other
matters that affect the overall Group.
The executive Directors review the day-to-day activities of the
subsidiaries, manage Group finances, perform negotiations
regarding acquisitions and disposals, recruit Directors of
subsidiaries, and allocate resources to manage the risk
environment.
The Non-Executive Directors are responsible for, but not
restricted by, the duties as described in the terms of reference
of the three committees, namely the Audit Committee, the
Remuneration Committee and the Nomination Committee.
Details of the terms of reference for the committees can be
found on the Group website.
The Executive Board oversees the day-to-day activities of the
businesses and internal risk management as delegated to the
management teams. Management decisions include the
purchase of authorised capital expenditure, negotiating
contracts for sales and purchases, recruiting and controlling
employees as necessary to operate their respective businesses. Annual Report 2007 27 Metalrax Group PLC
The Executive Board meets at least four times a year.
Board and committee attendance
During the year the attendance by Directors at Board and
Committee meetings was as follows:
Audit Remuneration Nomination
Board Committee Committee Committee
Total scheduled meetings 7 2 2 2
Attendance
AJ Richardson 
(from 15 October 2007) 1 — — — 
WD Kelly 7 2* — —
RE Arbuthnot 
(to 12 October 2007) 6 2* — —
JRA Crabtree 7 — 22
JK Adcock 6 2 2 2
AP Pearson 7 2 2 2
R Fort 
(to 23 May 2007) 3 1 1 — 
* Attended by invitation of the committee.
In addition AJ Richardson attended a further Board meeting prior
to his appointment as a Director.
Audit Committee
The Audit Committee is appointed by the Board from the Non-
Executive Directors of the Group. It is made up of AJ Pearson,
who chairs the committee, and JK Adcock. R Fort retired on
23 May 2007. The Audit Committee’s terms of reference
include all matters indicated by the Combined Code. The terms
of reference are considered annually by the Audit Committee
and are then referred to the Board for approval.
The Audit Committee is responsible for:
II monitoring the integrity of the financial statements of the
Group and any formal announcements relating to the
Group’s financial performance and reviewing significant
financial reporting judgements contained therein;
II reviewing the Group’s internal financial controls and, unless
expressly addressed by the Board itself, the Group’s internal
control and risk management systems;
II making recommendations to the Board, for a resolution to
be put to the shareholders for their approval in general
meeting, in relation to the appointment of the external
Auditors and the approval of the remuneration and terms of
engagement of the external Auditors;
II reviewing and monitoring the external Auditors’
independence and objectivity and the effectiveness of the
audit process, taking into consideration relevant UK
professional and regulatory requirements; and
II developing and implementing a policy on the engagement
of the external Auditors to supply non-audit services, taking
into account relevant guidance regarding the provision of
non-audit services by the external audit firm.
The Audit Committee is required to report its findings to the
Board, identifying any matters in respect of which it considers
that action or improvement is needed, and make
recommendations as to the steps to be taken.
Meetings are held at least two times a year. Other Directors
may be invited to attend and the Group Finance Director
attended both meetings held in 2007. The Auditors also
attended both meetings during 2007 and are also authorised
to speak directly to any Board member whenever they wish.
Remuneration Committee
The Remuneration Committee is made up of JK Adcock, who
chairs the committee, AP Pearson and JRA Crabtree. R Fort
retired on 23 May 2007. The committee meets whenever
necessary and met twice in 2007. The prime function of the
committee is to establish and review the remuneration,
incentives and terms and conditions for the executive
Directors. The Directors’ Remuneration Report on pages 30
and 34 shows how the principles regarding Directors’
remuneration have been applied. 
Nomination Committee
The principal task of the committee is to ensure that the skills,
experience and age of the Board is appropriate to the Group’s
activities to ensure its future success.
JRA Crabtree chairs the committee which was made up of
JK Adcock and AP Pearson throughout the year and
AJ Richardson, subsequent to his appointment.
The Nomination Committee met in 2007 in respect of the
appointment of AJ Richardson and the consideration of Board
succession.  28
Corporate Governance continued
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Internal control
The Directors have overall responsibility for the Group’s system
of internal controls and at least annually review the
effectiveness of all controls including financial, operational and
compliance controls and risk management systems. The Board
confirms that the procedures which accord with the Guidance
for Directors in the Combined Code have been in place for
2007 and up to the date of approval by the Board of the
Directors’ report and accounts. They recognise that any system
can provide only reasonable and not absolute assurance
against material misstatement or loss. 
The Group consists of a substantial number of autonomous
business units operating in a clearly-defined divisional structure
with clear lines of reporting. Each unit has the responsibility for
identifying its own significant business risks and for putting in
place an appropriate control environment and mitigation
processes to reduce exposure. As such there is real limitation of
the concentration of risk from a Group perspective.
The individual businesses operate under Group head-office
oversight, In particular:
II There are Group-wide policies for key areas of exposure such 
as Health and Safety
II Some key business activities, such as providing insurance
cover and employee benefits, are managed centrally so
allowing a level of expertise to be used which would be
difficult to sustain at each operating unit. These areas are
reviewed at least annually by the Board.
II Treasury functions are managed centrally and on a 
conservative basis to minimise risk.
II All major capital expenditure is subject to Board approval.
II A formal process of certification by the management of each 
business was introduced for 2007, covering control 
environment and compliance issues.
II There is a formal budgetary process together with regular 
monthly reporting of financial and other performance against 
budget. This information is reviewed at each meeting of 
the executive Board as well as at each Board meeting.
The Group’s external Auditors, Deloitte & Touche LLP , have
audited the financial statements and have reviewed the
internal financial control system to the extent they consider
necessary to support their audit report. Their findings are
reported to the individual units and also to the Audit
Committee at least annually.
All processes can be improved and, following the
organisational changes outlined in the Chief Executive’s Review
of Strategy, internal reporting and control procedures are being
strengthened to improve both quality and scope. This, together
with a greater emphasis on the formalisation of strategic
planning and risk review, should lead to a more robust position
going forward.
The Group does not have a separate internal audit function,
nor do the Board consider that the current scale of the
operation requires one. The existing level of oversight together
with planned improvements is regarded as sufficient to provide
the Board with reliable information. The Board is mindful to
keep this situation under regular review. 
“Whistleblowing”
Internal procedures are established to report grievances or
suspected inappropriate behaviour that may cause detriment
to other individuals or organisations. If it is not possible to deal
with the matter locally because of the nature of the behaviour,
any employee may email in confidence to the Group Chief
Executive at whistleblow@metalraxgroup.co.uk stating the
nature and location of the incident and this will be followed up
appropriately. The Company will treat dishonest or spurious
actions and accusations seriously; this may result in disciplinary
action in accordance with Company rules and disciplinary
procedures. Any employee raising any issue that proves to be
genuine need have no fear of any reprisals and the Company
will use its reasonable endeavours to ensure this.
This statement appears on the Group’s website. 
Shareholder relations
Both Chairman and Chief Executive meet regularly with
institutional Shareholders mainly in the periods following the
announcement of interim and final results but also at other
times, and the results of those meetings are communicated to
the Directors.
Communication with private and other Shareholders is made
both formally and informally at the Annual General Meeting
which is usually attended by the full Board.
Directors’ responsibilities for financial statements
The Directors are responsible for preparing the Annual Report,
Directors’ Remuneration Report and the financial statements in
accordance with applicable law and regulations. Annual Report 2007 29 Metalrax Group PLC
Company law requires the Directors to prepare financial
statements for each financial year. The Directors are required
by the IAS Regulation to prepare the Group financial
statements under International Financial Reporting Standards
(IFRSs) as adopted by the European Union and have also
elected to prepare the parent Company financial statements in
accordance with IFRSs as adopted by the European Union. The
financial statements are also required by law to be properly
prepared in accordance with the Companies Act 1985 and
Article 4 of the IAS Regulation. 
International Accounting Standard 1 requires that financial
statements present fairly for each financial year the Group’s
financial position, financial performance and cash flows. This
requires the faithful representation of the effects of
transactions, other events and conditions in accordance with
the definitions and recognition criteria for assets, liabilities,
income and expenses set out in the International Accounting
Standards Board’s ‘Framework for the preparation and
presentation of financial statements’. In virtually all
circumstances, a fair presentation will be achieved by
compliance with all applicable IFRSs. However, Directors are
also required to:
II properly select and apply accounting policies;
II present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information; and 
II provide additional disclosures when compliance with the
specific requirements in IFRSs are insufficient to enable users
to understand the impact of particular transactions, other
events and conditions on the entity’s financial position and
financial performance.
The Directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Group and Company and enable them
to ensure that the financial statements comply with the
Companies Act 1985. They are also responsible for
safeguarding the assets of the Group and hence for taking
reasonable steps for the prevention and detection of fraud and
other irregularities.
The Directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
Company’s website. Legislation in the United Kingdom
governing the preparation and dissemination of financial
statements may differ from legislation in other jurisdictions.
Auditors’ independence
The Audit Committee has responsibility for setting policy on
and reviewing external auditor independence, a process which
it performs at least annually. Day-to-day monitoring is
delegated to the Group Finance Director.
The policy restricts the non-audit services which the external
auditor may perform to tax compliance work and other areas
where the service will not conflict with their independence,
either in terms of the scope or scale.
On behalf of the Board
DJ Farrimond
Company Secretary
14 April 2008 30
Directors’ Remuneration Report
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
The Directors’ Remuneration Report covers all the Directors,
both executive and Non-Executive. A resolution to approve the
report will be proposed at the Company’s Annual General
Meeting to be held on 23 May 2008.
Information not subject to audit
Remuneration Committee
The purpose of the Remuneration Committee (the committee)
is to determine policy for the remuneration and terms of
engagement of the executive and Non-Executive Directors and
senior executives of the Company.
The committee comprises the Non-Executive Directors of 
the Company. The members of the committee during the 
year were:
JK Adcock (Chairman)
JRA Crabtree
R Fort (to 23 May 2007)
AP Pearson
The committee members have no personal financial interest,
other than as shareholders, in the Company. They have no
conflicts of interest arising from other responsibilities outside
the Company and are not involved in the day-to-day running
of the Company. They do not participate in any bonus, share
option or pension arrangements.
The committee operates under terms of reference available for
inspection at the registered office or on the Company’s
website. The terms of reference and constitution of the
committee comply with the principles set out in the Combined
Code on Corporate Governance.
The committee met twice during the period under review and
there was full attendance on both occasions.
Remuneration policy
The Group operates in a highly competitive global
environment. It is essential to recruit, retain, motivate and
reward executives with the capability of devising and delivering
Group strategy that will deliver a satisfactory financial
performance for all our stakeholders and shareholders over
time.
The committee’s objective therefore is to provide levels of
remuneration that are consistent with this objective. In doing
so, it sets salary levels which are appropriate for individual
responsibilities having regard for the marketplace and sector
generally and seeks to provide incentives to achieve strategic
and operational goals and growth in shareholder value. It is
the committee’s policy that the majority of an executive’s
remuneration package should be performance related.
In 2007 the committee appointed Mercer Limited to provide
independent advice on all aspects of executive remuneration.
Mercer does not provide any other material advice to the
Company.
Remuneration of executive Directors
The remuneration of executive Directors consists of the
following elements:
(i) Salary
Salary is determined at the beginning of each year and
when a Director has a change of responsibility. The
committee takes account of each Director’s performance in
the light of its knowledge of rates of salary for similar
responsibilities in other companies and of pay levels
elsewhere in the Group.
(ii) Benefits in kind
These principally comprise benefits relating to the use of a
vehicle (or cash equivalent), life assurance, membership of
the Group’s healthcare insurance scheme and accident
insurance. These benefits are not pensionable.
(iii) Annual bonus
Executive Directors will participate in an annual bonus
scheme up to 100% of salary dependent upon the degree
to which certain corporate and personal performance
measures are achieved for the 2008 financial year, payable
in 2009. No bonuses were paid in respect of the 2007
financial year performance. AJ Richardson’s bonus in 2007
represents an amount paid in March 2008 as
compensation for bonus and loss of benefits foregone at
his previous employer as a consequence of his appointment
to Metalrax Group Plc.
Bonus schemes are also in operation for senior Executives
dependent upon pre-agreed corporate, divisional or
business unit and personal objectives being achieved.
(iv) Share-based payments
The Directors believe that share options are an excellent
method of aligning the interests of senior management Annual Report 2007 31 Metalrax Group PLC
(including executive Directors) who have completed six
months’ continuous service. Under this plan the Company
can, if it thinks fit, grant options at a price 20% below the
market price. Exercise of options under the Sharesave Plan
is not subject to any performance condition. Details of
Directors options under this plan are given in this report.
Long Term Incentive Plan (LTIP)
The 2006 LTIP was approved at the Annual General
Meeting held on 23 May 2006. No options have been
granted under the LTIP . Subject to shareholder approval at
the Meeting, the Committee proposes that for each 1%
increase in the group’s pre-tax profits, participants will
receive an option over shares worth 2% of their annual
salary. Furthermore, it is proposed that future awards will
only be made if group profit before tax exceeds that for 31
December 2007 and subsequently the best group profit
before tax in excess of 2007. It is the Committee’s intention
that only AJ Richardson will participate in the LTIP , with first
awards made under this plan in 2009. The performance
target attached to the vesting of awards made will be the
same as under the modified ESOS above.
One-off Long Term Incentive Plan for Chief Executive
A one-off long-term incentive plan has been put in place
for AJ Richardson to facilitate his recruitment and retention
over the long term. Under this plan, he received a one-off
award of 3,963,964 phantom units on 10 April 2008. A
phantom unit is equivalent to one ordinary share in the
Company.
The award will vest after five years from the date of
awards, subject to the achievement of a relative Total
Shareholder Return (“TSR”) condition. Performance will be
measured over five financial years from 1 January 2008 to
31 December 2012. Therefore, 50% of the award will vest
if the Company’s TSR is at the median of a comparator
group consisting of companies in the FTSE All Share Index
and 100% will vest if the Company’s TSR is at the upper
quartile or higher. There will be no vesting below median
and the award will vest on a straight-line basis between
median and upper quartile. The vesting of the award will
be satisfied in either cash or shares, at the discretion of the
Committee.
with those of Shareholders. Executive Directors participate
in the following plans:
2007 Executive Share Option Plan (ESOP)
The Annual General Meeting held on 23 May 2007
approved the 2007 Executive Share Option Plan. This
enables the committee to also grant options, if it thinks fit,
to any employee throughout the Group (including
executive Directors) to purchase shares in the Company at
market value on the award date, subject to the
achievement of Performance Targets. 
The Performance Targets require the increase in earnings
per share of the Group to exceed the increase in the retail
price index during a period of three consecutive financial
years immediately following and including the date the
option is granted.
Subject to shareholder approval at the Annual General
meeting on 23 May 2008, the committee is proposing to
modify the overall maximum individual award limit so that
it applies only to awards made under the ESOP . Therefore,
the overall maximum individual award limit under the ESOP
would be 100% of salary in a financial year. The committee
is also proposing to increase the maximum individual
award limit in exceptional circumstances, for example, to
support the recruitment of key personnel, to 200% of
salary in a financial year. 
The performance targets attached to the awards made
from 2008 will be as follows: 50% of the awards will vest
if the increase in earnings per share (“EPS”) equals the
increase in Retail Price Index (“RPI”) plus 3% per annum
and 100% will vest if the increase in EPS equals the
increase in RPI plus 5% or more per annum. Between these
two points, awards will vest on a straight line basis and
there will be no vesting if the increase in EPS is less than
the increase in RPI plus 3% per annum. The performance
period will be three financial years starting from the
financial year prior to that in which the awards are made.
There will be no re-testing opportunity of the performance
target. 
No options have been granted under this plan. 
2007 Sharesave Plan
The Annual General Meeting on 23 May 2007 approved
the 2007 Sharesave Plan. This plan is open to all employees Directors’ Remuneration Report continued
32 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Remuneration of Non-Executive Directors
The remuneration of the Chairman is decided by the Board
following recommendations made by other members of the
Remuneration Committee in consultation with the Chief
Executive. The remuneration of the other Non-Executive
Directors is determined by the Board following
recommendations by the Chairman and after consultation with
the Chief Executive.
Directors’ service agreements
No Director has a contract requiring more than 12 months
notice. AJ Richardson’s contract, dated 15 October 2007
contains a notice period of 12 months. The Non-Executive
Directors, whose remuneration is determined by the Board, do
not have service agreements but are appointed for a fixed term
expiring when they become due for re-election at an Annual
General Meeting. They are not allowed to participate in share
option schemes and are not eligible to join any of the Group’s
pension schemes.
Compensation for loss of office
Compensation for loss of office typically includes payments of
salary, benefits, pension contributions and lump sum payments.
The committee believes that EPS and TSR are both
appropriate measures of performance: EPS measures the
profit generated for our ordinary shareholders whilst TSR is
a measure of shareholder value created.
(v) Pension benefits
The executive section of the Metalrax Group PLC Pension
and Life Assurance Plan, which in 2007 only applied to RE
Arbuthnot as Chief Executive, provides a pension at age 62
of two-thirds of final pensionable salary subject to
completion of sufficient years of service. In accordance
with Group policy, pensionable salary does not include any
bonuses. If a member of the scheme dies while still in
service the scheme provides life assurance cover of four
times pensionable salary and a widow’s pension. 
AJ Richardson and WD Kelly are members of a money
purchase scheme. They also receive death in service cover
of four times basic salary.
250
200
150
100
50
0
2002 2003 2004 2005 2006 2007 
Value of £100 Invested in December 2002
Metalrax                     FTSE All Share 
Directors’ other interests
No Director had an interest in any contract subsisting during
the year which was significant in relation to the Group’s
business.
Performance graph
The Directors consider the FTSE all share index to be 
appropriate for comparative purposes as it represents a broad
equity index. Annual Report 2007 33 Metalrax Group PLC
Information subject to audit
Directors’ Remuneration (excluding pension)
Compensation
Salary/ Benefits for loss of Total Total
Fee Bonus in kind office 2007 2006
£000 £000 £000 £000 £000 £000
Executive
AJ Richardson (from 15 October 2007) 41 150 2— 193 —
WD Kelly 129 — 13 98 240 119
RE Arbuthnot (to 12 October 2007) 126 — 13 314 453 185
JGL Edwards (to 14 March 2006) ——— — — 23
GH Gresham (to 14 March 2006) ——— — — 24
DJ Farrimond (to 14 March 2006) ——— — — 21
RH Brook-Carter (to 14 March 2006) ——— — — 20
Non-executive
JRA Crabtree (Chairman) 52 ——— 52 50
JK Adcock 31 ——— 31 30
AP Pearson 31 ——— 31 30
R Fort (to 23 May 2007) 10 ——— 10 22
2007 total 420 150 28 412 1,010 524
2006 total 463 29 32 — 524
RE Arbuthnot was employed until 31 December 2007. His compensation for loss of office represents continuation of his salary
and benefits until retirement date. The compensation for loss of office for WD Kelly represents lump sum amounts in respect of
pay in lieu of notice and premium benefit accounted for in 2007.
Pension benefits earned by Directors
Transfer value of accrued Accumulated Transfer value of 
pension benefits at Increase in accrued  Transfer value total accrued pension accrued pension benefits 
beginning of the year pension during the year of increase at year end at end of the year
£000 £000 per annum £000 £000 per annum £000
RE Arbuthnot
(to 12 October 2007) 1,246 3 56 83 1,302
The pension entitlements shown are those earned during the year and which would be paid annually on retirement based on
service to 31 December 2007 or date of leaving if earlier. The increase in accrued pension during the year excludes any increase
for inflation. The transfer value has been calculated on the basis of actuarial advice in accordance with Actuarial Guidance Note
GN11. No additional voluntary contributions have been included in the above table.
Contributions paid by the Company in respect of Directors participating in money purchase schemes were as follows:
2007 2006
£000 £000
AJ Richardson 11 —
WD Kelly 32 25
43 25 34
Directors’ Remuneration Report continued
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Directors’ interests in shares
The beneficial interests of the Directors who held office at the end of the year in the ordinary shares of the Company, as notified
to the Company, are:
31 December
2007 2006
JRA Crabtree 50,000 30,000
AJ Richardson (appointed 15 October 2007) 20,000 —
WD Kelly 20,000 15,000
JK Adcock 34,809 34,809
AP Pearson 20,000 10,000
Directors’ share options
The movement in share options during the financial year were as follows:
As at Granted Exercised As at Exercise Date first
Scheme 01 Jan 07 in year in year 31 Dec 07 price exercisable
WD Kelly 2007 Sharesave — 20,869 — 20,869 46p 1 Dec 2010
All options lapse no later than six months after the date they are first exercisable
On behalf of the Board
JK Adcock
14 April 2008
Chairman of the Remuneration Committee  Annual Report 2007 35 Metalrax Group PLC
Report of the independent Auditors 
to the members of Metalrax Group PLC
We have audited the Group and parent Company financial
statements (the ‘’financial statements’’) of Metalrax Group PLC
for the year ended 31 December 2007 which comprise the
Consolidated income statement, Consolidated statement of
recognised income and expenses, Consolidated balance sheet,
Parent Company balance sheet, Cash flow statements and the
related notes 1 to 34. These financial statements have been
prepared under the accounting policies set out therein. We
have also audited the information in the Directors’
Remuneration Report that is described as having been audited.
This report is made solely to the Company’s members, as a body,
in accordance with section 235 of the Companies Act 1985. Our
audit work has been undertaken so that we might state to the
Company’s members those matters we are required to state to
them in an Auditors’ report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the
Company’s members as a body, for our audit work, for this
report, or for the opinions we have formed.
Respective responsibilities of Directors and Auditors
The Directors’ responsibilities for preparing the Annual Report,
the Directors’ Remuneration Report and the financial statements
in accordance with applicable law and International Financial
Reporting Standards (IFRSs) as adopted by the European Union
are set out in the Statement of Directors’ Responsibilities.
Our responsibility is to audit the financial statements and the
part of the Directors’ Remuneration Report to be audited in
accordance with relevant legal and regulatory requirements
and International Standards on Auditing (UK and Ireland).
We report to you our opinion as to whether the financial
statements give a true and fair view and whether the financial
statements and the part of the Directors’ Remuneration Report
to be audited have been properly prepared in accordance with
the Companies Act 1985 and, as regards the Group financial
statements, Article 4 of the IAS Regulation. We also report to
you whether in our opinion the information given in the
Report of the Directors is consistent with the financial
statements. The information given in the Report of the
Directors includes that specific information presented in the
Chairman’s statement, Chief Executive’s review, Financial
review and Corporate and Social responsibility statement that
is cross referred from the Business Review section of the Report
of the Directors.
In addition we report to you if, in our opinion, the Company
has not kept proper accounting records, if we have not
received all the information and explanations we require for
our audit, or if information specified by law regarding
Directors’ remuneration and other transactions is not disclosed.
We review whether the Corporate Governance Statement
reflects the Company’s compliance with the nine provisions of
the 2006 Combined Code specified for our review by the
Listing Rules of the Financial Services Authority, and we report
if it does not. We are not required to consider whether the
Board’s statements on internal control cover all risks and
controls, or form an opinion on the effectiveness of the
Group’s corporate governance procedures or its risk and
control procedures.
We read the other information contained in the Annual Report
as described in the contents section and consider whether it is
consistent with the audited financial statements. We consider
the implications for our report if we become aware of any
apparent misstatements or material inconsistencies with the
financial statements. Our responsibilities do not extend to any
further information outside the Annual Report.
Basis of audit opinion
We conducted our audit in accordance with International
Standards on Auditing (UK and Ireland) issued by the Auditing
Practices Board. An audit includes examination, on a test basis,
of evidence relevant to the amounts and disclosures in the
financial statements and the part of the Directors’
Remuneration Report to be audited. It also includes an
assessment of the significant estimates and judgments made
by the Directors in the preparation of the financial statements,
and of whether the accounting policies are appropriate to the
Group’s and Company’s circumstances, consistently applied
and adequately disclosed.
We planned and performed our audit so as to obtain all the
information and explanations which we considered necessary
in order to provide us with sufficient evidence to give
reasonable assurance that the financial statements and the
part of the Directors’ Remuneration Report to be audited are
free from material misstatement, whether caused by fraud or
other irregularity or error. In forming our opinion, we also
evaluated the overall adequacy of the presentation of
information in the financial statements and the part of the
Directors’ Remuneration Report to be audited.  36 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Opinion
In our opinion:
II The Group financial statements give a true and fair view, in 
accordance with IFRSs as adopted by the European Union, of 
the state of the Group’s affairs as at 31 December 2007 and 
of its loss for the year then ended;
II The parent Company financial statements give a true and 
fair view, in accordance with IFRSs as adopted by the 
European Union as applied in accordance with the provisions 
of the Companies Act 1985, of the state of the parent 
Company’s affairs as at 31 December 2007;
II The financial statements and the part of the Directors’ 
Remuneration Report to be audited have been properly 
prepared in accordance with the Companies Act 1985 and, 
as regards the Group financial statements, Article 4 of the 
IAS Regulation; and
II The information given in the Report of the Directors is 
consistent with the financial statements.
Separate opinion in relation to IFRSs
As explained in the Accounting Policies statement to the Group
financial statements, the Group in addition to complying with
its legal obligations to comply with IFRSs as adopted by the
European Union, has also complied with the IFRSs as issued by
the International Accounting Standards Board.
In our opinion, the Group financial statements give a true and
fair view, in accordance with IFRSs, of the state of the Group’s
affairs as at 31 December 2007 and of its loss for the year then
ended.
Deloitte & Touche LLP
Chartered Accountants and Registered Auditors 
Four Brindleyplace
Birmingham
B1 2HZ
14 April 2008
Report of the independent Auditors 
to the members of Metalrax Group PLC continued Financial Statements
Annual Report 2007 37 Metalrax Group PLC 38
Consolidated income statement
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Year ended 31 December 2007
2007 2006
Before Before
exceptional Exceptional exceptional Exceptional
items items* Total items items* Total
Notes £000 £000 £000 £000 £000 £000
Continuing operations
Revenue 1 118,647 — 118,647 120,233 — 120,233
Cost of sales (95,804) — (95,804) (95,028) — (95,028)
Gross profit 22,843 — 22,843 25,205 — 25,205
Distribution expense (7,092) — (7,092) (7,713) — (7,713)
Administrative expense (12,370) (13,689) (26,059) (10,485) (2,286) (12,771)
Other operating income — 1,472 1,472 — 1,878 1,878
Operating profit/(loss) 5 3,381 (12,217) (8,836) 7,007 (408) 6,599
Finance income 4 ——— 6— 6
Finance expense 4 (1,120) — (1,120) (511) — (511)
Profit/(loss) before taxation 2,261 (12,217) (9,956) 6,502 (408) 6,094
Taxation 6 2,970 (1,497)
(Loss)/profit for the year (6,986) 4,597
(Loss)/profit for the year attributable
to equity holders of the parent (6,986) 4,597
(Loss)/earnings per ordinary share
Basic and diluted (loss)/earnings per share 7 (5.83p) 3.83p
Dividends in respect of the year
Paid (£000) 8 6,474 6,474
Paid per share 8 5.40p 5.40p
* Exceptional items (note 3) are items of income and expenditure that, in the judgement of management, should be disclosed separately on the basis that they are material, either by
their nature or their size, to the understanding of the financial statements and where not to do so would distort the comparability of financial performance between periods. In 2007 the
£12.2 million charge comprised reorganisation costs, losses on long-term contracts, stock write-downs and property profits. In 2006 the £0.4 million charge consisted of reorganisation
costs, property profits and a discount on acquisition. Annual Report 2007 39 Metalrax Group PLC
Statement of recognised income and expense
Year ended 31 December 2007
Consolidated
2007 2006
Note £000 £000
Revaluation of properties 11,667 —
Actuarial (loss)/gain on defined benefit pension scheme (572) 2,441
Tax on items taken directly to equity (1,320) (733)
Exchange losses (41) —
Net income recognised directly in equity 9,734 1,708
(Loss)/profit for the year (6,986) 4,597
Total recognised income for the year 24 2,748 6,305
Attributable to:
Equity holders of the parent 24 2,748 6,305
Company
2007 2006
£000 £000
Revaluation of properties 1,113 —
Actuarial (loss)/gain on defined benefit pension scheme (572) 2,409
Tax on items taken directly to equity (95) (723)
Net income recognised directly in equity 446 1,686
Loss for the year (1,847) (1,089)
Total recognised (expense)/income for the year (1,401) 597
Attributable to:
Equity holders of the parent (1,401) 597 40
Consolidated balance sheet
As at 31 December 2007
2007 2006
Notes £000 £000
Assets
Goodwill 9 11,381 11,356
Other intangible assets 9 — 50
Property, plant and equipment 10 36,356 33,158
Deferred tax asset 20 1,609 948
Total non-current assets 49,346 45,512
Inventories 13 13,176 18,068
Trade and other receivables 14 24,338 29,099
Current tax asset 274 —
Assets held for sale 15 3,557 1,063
Total current assets 41,345 48,230
Total assets 90,691 93,742
Liabilities
Loan notes 17 250 250
Trade and other payables 22,344 22,930
Provisions 18 384 —
Current tax payable — 540
Bank overdrafts and loans 17 12,031 9,936
Total current liabilities 16 35,009 33,656
Loan notes 17 250 500
Provisions 18 289 —
Employee benefits 19 3,412 3,159
Deferred tax liabilities 20 1,143 2,128
Total non-current liabilities 5,094 5,787
Total liabilities 40,103 39,443
Net assets 50,588 54,299
Equity
Share capital 21 5,995 5,995
Share premium account 23 2,732 2,732
Capital redemption reserve 23 274 274
Revaluation reserve 23 10,262 —
Other reserve 23 15 —
Retained earnings 23 31,310 45,298
Total equity 24 50,588 54,299
Signed on behalf of the Board by
AJ Richardson
Group Chief Executive
14 April 2008
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 41 Metalrax Group PLC
Company balance sheet
As at 31 December 2007
2007 2006
Notes £000 £000
Assets
Property, plant and equipment 11 2,851 1,688
Investments 12 30,041 30,066
Deferred tax asset 20 955 906
Total non-current assets 33,847 32,660
Other receivables 14 71 688
Amounts owed by Group undertakings 31,645 20,677
Current tax assets 193 1,365
Total current assets 31,909 22,730
Total assets 65,756 55,390
Liabilities
Loan notes 17 250 250
Trade and other payables 2,252 1,699
Bank overdrafts and loans 17 23,225 5,847
Total current liabilities 16 25,727 7,796
Loan notes 17 250 500
Employee benefits 19 3,412 3,021
Deferred tax liabilities 20 182 13
Total non-current liabilities 3,844 3,534
Total liabilities 29,571 11,330
Net assets 36,185 44,060
Equity
Share capital 21 5,995 5,995
Share premium account 23 2,732 2,732
Capital redemption reserve 23 274 274
Revaluation reserve 23 933 —
Retained earnings 23 26,251 35,059
Total equity 36,185 44,060
Signed on behalf of the Board by
AJ Richardson
Group Chief Executive
14 April 2008 42
Cash flow statements
Year ended 31 December 2007
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
Operating activities
Cash generated from/(used in) operations 25(a) 6,490 5,089 (9,179) (1,782) 
Interest received — 6 — 6 
Interest paid (996) (511) (996) (480)
Taxation paid (810) (1,882) (759) (1,305)
Net cash generated from/(used in) operating activities 4,684 2,702 (10,934) (3,561) 
Investing activities
Purchase of property, plant and equipment (6,019) (3,241) (98) (51)
Proceeds from sale of property, plant and equipment 6,263 1,746 677 15
Acquisition of businesses 25(d) (549) (6,692) (549) (5,084)
Net cash (used in)/from investing activities (305) (8,187) 30 (5,120)
Financing activities
Equity dividends paid 8 (6,474) (6,474) (6,474) (6,474)
Repayment of borrowings — (690) — —
New bank loans raised 17 5,000 5,000 5,000 5,000
(Decrease)/increase in bank overdraft (2,905) 4,936 12,378 847
Net cash (used in)/from financing activities (4,379) 2,772 10,904 (627)
Net decrease in cash and cash equivalents 25(b) — (2,713) — (9,308) 
Cash and cash equivalents at beginning of year — 2,713 — 9,308 
Cash and cash equivalents at end of year 25(c) — — — — 
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 43 Metalrax Group PLC
Accounting policies Year ended 31 December 2007
Metalrax Group PLC is a Company incorporated in the United Kingdom under the Companies Act 1985. The consolidated
financial statements of the Company for the year ended 31 December 2007 comprise the Company and its subsidiaries (together
referred to as the “Group”). The consolidated and parent Company financial statements were authorised for issuance on
14 April 2008.
The address of the registered office is given on page 22. The nature of the Group’s operations and its principal activities are set
out in the Chief Executive’s Review of Operations on page 8, Report of the Directors on page 24, and note 2 on page 50.
These financial statements are presented in pounds sterling because that is the currency of the primary economic environment in
which the Group operates. Foreign operations are included in accordance with the policies set out in the accounting policies below.
Statement of compliance
Both the Group and parent Company financial statements have been prepared and approved by the Directors in accordance with
International Financial Reporting Standards and interpretations adopted for use by the EU (“IFRS”). On publishing the parent
Company financial statements here together with the Group financial statements, the Company is taking advantage of the
exemption in s230 of the Companies Act 1985 not to present its individual income statement and related notes that form part of
the approved financial statements.
Basis of preparation
The financial statements are prepared on the historical cost basis except that freehold and long leasehold properties, derivative
financial instruments and assets classified as held for sale are held at fair value. The preparation of financial statements in
conformity with IFRSs requires management to make judgements, estimates and assumptions that affect the application of
policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are
based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of
which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from
other sources. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods.
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial
statements.
Basis of consolidation 
Subsidiaries are entities controlled by the Company. Control exists when the Company has the power, directly or indirectly, to
govern the financial and operating policies of an entity so as to obtain benefits from its activities. The financial statements of
subsidiaries are included in the consolidated financial statements from the date that control commences until the date that
control ceases.
Intra-Group balances, and any unrealised gains and losses or income and expenses arising from intra-Group transactions, are
eliminated in preparing the consolidated financial statements. 
Business combinations
The acquisition of subsidiaries is accounted for using the purchase method. The cost of the acquisition is measured at the
aggregate of the fair values, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments
issued by the Group in exchange for control of the acquiree, plus any costs directly attributable to the business combination. 
The acquiree’s identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 are
recognised at their fair value at the acquisition date, except for non-current (or disposal Groups) that are classified as held for
resale in accordance with IFRS 5 Non Current Assets Held for Sale and Discontinued Operations, which are recognised and
measured at fair value less costs to sell.
Goodwill arising on acquisition is recognised as an asset and initially measured at cost, being the excess of the cost of the
business combination over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities
recognised. If, after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable assets, liabilities and
contingent liabilities exceeds the cost of the business combination, the excess is recognised immediately in profit or loss.
Revenue
Revenue is measured at the fair value of the consideration received or receivable and represents the amounts receivable for goods
and services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Sales of goods are
recognised when goods are delivered and title has passed. 44
Accounting policies continued
Construction contracts
The Group undertakes long term contracts for construction projects as a sub-contractor. Where the outcome of a construction
contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract
activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to
date bear to the estimated total contract costs, except where this would not be representative of the stage of completion.
Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the
customer.
Where the outcome of a construction contract cannot be estimated reliably contract revenue is recognised to the extent of
contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which
they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised
as an expense immediately.
Depreciation
Depreciation of Property, Plant and Equipment is charged to the income statement so as to write off the cost or valuation of the
assets over the estimated useful lives after taking account of estimated residual values. Land is not depreciated.
The principal rates and methods of depreciation used are as follows:
II Freehold buildings, long leasehold property improvements and ground rents: 2% per annum on cost.
II Short leasehold property improvement: over the period of the lease
II Plant, fixtures and fittings and office equipment: 10–20% per annum on cost.
II Motor vehicles: 25% per annum on cost.
Leases
Leases in which the Group assumes substantially all of the risks and rewards of ownership are classified as finance leases. These
assets are included in the balance sheet and are depreciated accordingly. The capital element of the corresponding financing
commitments is included in the balance sheet.
Lease payments in respect of finance leases are apportioned between the finance charge and the reduction of the outstanding
liability. The finance charge is allocated to each period during the lease term so as to produce a constant periodic rate of interest
on the remaining balance of the liability.
Payments made under operating leases are recognised in the income statement on a straight-line basis over the term of 
the lease.
Financing income and costs
Financing costs comprise interest payable on borrowings, and gains and losses on financial instruments that are recognised in the
Income Statement.
Interest income is recognised in the income statement as it accrues.
Interest payable on borrowings includes a charge in respect of attributable transaction costs, which are recognised in the income
statement over the period of the borrowings on an effective interest basis. The interest expense component of finance lease
payments is recognised in the income statement using the implicit interest rate method.
Taxation
The tax on the profit or loss comprises current and deferred tax. Current tax is the expected tax payable on the taxable income
for the year, using tax rates enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.
Deferred tax is provided using the balance sheet liability method, providing for temporary differences between the carrying
amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following
temporary differences are not provided for: goodwill not deductible for tax purposes, the initial recognition of assets or liabilities
that affect neither accounting nor taxable profit, and differences relating to investments in subsidiaries to the extent that they will
probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of
realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted on the
balance sheet date.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which
the asset can be utilised.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 45 Metalrax Group PLC
Segment reporting
A segment is a distinguishable component of the Group that is engaged in providing products or services (business segment) or
in providing products or services within a particular economic environment (geographical segment), which is subject to risks and
rewards that are different from those of other segments.
The Group primarily analyses its activities based on class of business. Its operational activities are undertaken almost entirely
within the UK and accordingly the Group’s operating activities are derived from only one geographical segment.
Impairments
The carrying amounts of all the Group’s assets are reviewed at each balance sheet date to determine whether there is any
indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is
recognised whenever the carrying amount of an asset or its cash generating unit exceeds its recoverable amount. Impairment
losses are recognised in the Income Statement unless the asset is recorded at a revalued amount in which case it is treated as a
revaluation decrease.
Property, plant and equipment
Items of property, plant and equipment are stated at cost or valuation less accumulated depreciation and accumulated
impairment losses. Revaluations are performed with sufficient regularity that the carrying amount does not differ materially from
that which would be determined using fair values at the balance sheet date.
Any revaluation increase arising on the revaluation of land and buildings is credited to the revaluation reserve, except to the
extent that it reverses a revaluation decrease for the same asset previously recognised as an expense, in which case the increase is
credited to the income statement to the extent of the decrease previously charged. A decrease in carrying amount arising on the
revaluation of such land and buildings is charged as an expense to the extent that it exceeds the balance, if any, held in the
revaluation reserve relating to a previous revaluation of that asset.
Depreciation on revalued buildings is charged to income. On the subsequent sale or retirement of a revalued property, the
attributable revaluation surplus remaining in the revaluation reserve is transferred directly to retained earnings.
The cost of self-constructed assets includes the cost of materials, direct labour, and an appropriate proportion of directly
attributable overheads.
When parts of an item of property, plant and equipment have different useful lives, those components are accounted for as
separate items of property, plant and equipment.
Intangible assets
Goodwill
All business combinations are accounted for by applying the purchase method. In respect of acquisitions since April 2004,
goodwill represents the difference between the cost of acquisition and the fair value of the Group’s share of the net identifiable
assets acquired. In respect of acquisitions prior to this date, goodwill is included on the basis of its deemed cost, which represents
the amount recorded under previous GAAP .
At each balance sheet date the Group reviews the carrying amounts of its goodwill to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated
in order to determine the extent of the impairment loss (if any). Where the asset does not generate any cash flows that are
independent from other assets, the Group estimates the recoverable amount of the cash-generating unit (CGU) to which the
asset belongs. Any goodwill with an indefinite useful life is tested for impairment annually and whenever there is an indication
that the asset may be impaired.
Recoverable amount is the higher of fair value less costs to sell and value in use. The key assumptions for the value in use
calculations are those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during
the period. Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of
money and the risks specific to the CGUs. The growth rates are based on industry growth forecasts. Changes in selling prices and
direct costs are based on past practices and expectations of future changes in the market.
The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next
three years and extrapolates cash flows to perpetuity excluding any growth.
If the recoverable amount of goodwill is estimated to be less than its carrying amount, the carrying amount is reduced to its
recoverable amount. An impairment loss is recognised as an expense immediately. 
Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Other intangible assets
Intangible assets other than goodwill that are acquired by the Group are stated at cost less accumulated amortisation and
impairment losses (see note 9). 46
Accounting policies continued
Amortisation
Amortisation is charged to the income statement on a straight-line basis over the estimated useful lives. Other intangible assets
are amortised from the date that they are available for use. The Group has identified intangible assets in respect of its customer
base. The values of these contracts are recognised as part of the net identifiable assets acquired, and are amortised over the
unexpired period of the contract, which is up to five years.
Inventories
Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where appropriate,
overheads that have been incurred in bringing the inventory to its present location and condition. Net realisable value is the
estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
Financial instruments
(a) Financial assets
The Group’s financial assets fall into the categories discussed below, with the allocation depending to an extent on the purpose
for which the asset was acquired. Although the Group occasionally uses derivative financial instruments in economic hedges of
currency rate risk, it does not hedge account for these transactions. The Group has not classified any of its financial assets as held
to maturity.
Unless otherwise indicated, the carrying amounts of the Group’s financial assets are a reasonable approximation of their fair
values.
(a) (i) Loans and receivables
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market.
They arise principally through the provision of goods and services to customers (e.g. trade receivables) and deposits held at
banks, but may also incorporate other types of contractual monetary asset. They are initially recognised at fair value plus
transaction costs that are directly attributable to the acquisition or issue and subsequently carried at amortised cost using the
effective interest rate method, less provision for impairment.
The effect of discounting on these financial instruments is not considered to be material.
Impairment provisions are recognised when there is objective evidence (such as significant financial difficulties on the part of the
counterparty or default or significant delay in payment) that the Group will be unable to collect all of the amounts due under the
terms receivable, the amount of such a provision being the difference between the net carrying amount and the present value of
the future expected cash flows associated with the impaired receivable. For trade receivables, such provisions are recorded in a
separate allowance account with the loss being recognised within distribution expenses in the income statement. On
confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the
associated provision.
(a) (ii) Fair value through profit or loss
This category comprises only ‘in the money’ foreign exchange derivatives to the extent that they exist (see (b)(ii) for ‘out of the
money’ derivatives). They are carried in the balance sheet at fair value with changes in fair value recognised in finance income or
expense. Other than these derivative financial instruments, the Group does not have any assets held for trading nor has it
designated any financial assets as being at fair value through profit or loss.
The fair value of the Group’s foreign exchange derivatives is measured using quoted forward exchange rates and yield curves
derived from quoted interest rates matching maturity of the contracts.
(b) Financial liabilities
The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was
incurred. Although the Group uses derivative financial instruments in economic hedges of currency risk, it does not hedge
account for these transactions.
Unless otherwise indicated, the carrying amounts of the Group’s financial liabilities are a reasonable approximation of their fair
values.
(b) (i) Financial liabilities measured at amortised cost
These liabilities include the following items:
II Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried 
at amortised cost using the effective interest method.
II Bank borrowings and loan notes are initially recognised at fair value net of any transaction costs directly attributable to the 
issue of the instrument. Such interest bearing liabilities are subsequently measured at amortised cost using the effective 
interest rate method. Interest is recognised as a finance expense in the income statement.
The fair value of the Group’s financial liabilities is determined in accordance with generally accepted pricing models based on
discounted cash flow analysis using market rates of interest.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 47 Metalrax Group PLC
(b) (ii) Fair value through profit or loss
This category comprises only ‘out of the money’ derivatives to the extent that they exist (see (a) (ii) for ‘in the money’ derivatives).
They are carried in the balance sheet at fair value with changes in fair value recognised in finance income or expense. Other than
these derivative financial instruments, the Group does not have any liabilities held for trading nor has it designated any financial
liabilities as being at fair value through profit or loss.
The methods used for calculating the fair value of the Group’s interest rate and foreign exchange derivatives have been described
in (a) (ii) above.
(c) Share capital
The Group’s ordinary shares are classified as equity instruments. The Group is not subject to any externally imposed capital
requirements. Share capital includes the nominal value of the shares and any share premium attaching to the shares.
Assets held for sale
Assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale transaction
rather than through continuing use. 
Assets held for sale are stated at the lower of carrying amount and fair value less costs to sell.
Cash and cash equivalents
For the purposes of the consolidated cash flow statement, cash and cash equivalents comprise cash balances with less than three
months maturity from the date of acquisition.
Employee benefits
Pension Schemes
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. Payments made to
state-managed retirement benefit schemes are dealt with as payments to defined contribution schemes where the Group’s
obligations under the schemes are equivalent to those arising in a defined contribution retirement benefit scheme.
For defined benefit schemes, the cost of providing benefits is determined using the Projected Unit Credit Method, with actuarial
valuations being carried out at each balance sheet date. Actuarial gains and losses are recognised in full in the period in which
they occur. They are recognised outside profit or loss and presented in the statement of recognised income and expense.
Past service cost is recognised immediately to the extent that the benefits are already vested, and otherwise is amortised on a
straight-line basis over the average period until the benefits become vested.
The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation
as adjusted for unrecognised past service cost, and as reduced by the fair value of scheme assets. Any asset resulting from this
calculation is limited to past service cost, plus the present value of available refunds and reductions in future contributions to the
scheme.
Share-based payments
The Group provides share-based incentives under three schemes, all previous schemes having lapsed:
Executive bonus and Long-Term Incentive Plan (LTIP)
This was introduced during 2006 for certain executives. To date no awards have been made under this plan.
2007 Executive Share Option Plan (ESOP)
This plan introduced during 2007 allows the granting of options to any employee in the Group, including executive Directors,
subject to the achievement of certain performance targets. To date no awards have been made under this plan.
2007 Sharesave Scheme
This HM revenue & Customs approved scheme was introduced during 2007 and allows employees to commit to saving a fixed
amount of salary each month, which can be used after three years to purchase share options awarded to individual employees
based on the level of savings they have agreed to. As such it is regarded as an equity-settled share option plan with a vesting
period of three years and with non-market based performance criteria.
The first awards under this scheme were made on 24 October 2007 and will vest on 1 December 2010. The fair value of this
award was measured at the date of grant using the Black-Scholes model and will not be subsequently re-measured. This fair
value is charged to the consolidated income statement on a straight-line basis over the vesting period based on the actual level of
forfeiture and the expected level of options that will ultimately vest. The corresponding credit is to Shareholders’ funds. 48
Accounting policies continued
Provisions
A provision is recognised in the balance sheet when the Group has a present legal or constructive obligation as a result of a past
event, and it is probable that an outflow of economic benefits will be required to settle the obligation. If the effect is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessments of the time value of money and, where appropriate, the risks specific to the liability.
Foreign currencies
The individual financial statements of each Group company are presented in the currency of the primary economic environment
in which it operates (its functional currency). For the purpose of the consolidated financial statements, the results and financial
position of each Group company are expressed in pounds sterling, which is the functional currency of the Company, and the
presentation currency for the consolidated financial statements.
In preparing the financial statement of the individual companies, transactions in currencies other than the functional currency
(foreign currencies) are recorded at the rates of exchange prevailing on the dates of the transactions. At each balance sheet date,
monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the balance
sheet date.
For the purpose of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations are
translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average
exchange rates for the period.
Significant judgments and estimates
The preparation of financial statements in conformity with IFRS requires management to make judgments, estimates and
assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The
estimates and associated assumptions are based on historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis of making the judgments about carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
In the process of applying the Group’s accounting policies, management have concluded that the three areas of significant
judgment and estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are:
Impairment of goodwill
Determining whether goodwill is impaired requires an estimation of the value in use of the cash-generating units to which
goodwill has been allocated. The value in use calculation requires the Company to estimate the future cash flows expected to
arise from the cash-generating unit and a suitable discount rate to calculate present value. The carrying amount of goodwill at
the balance sheet date was £11,381,000. No impairment loss was recognised during 2007.
Long term contracts
The carrying value of both work in progress and amounts recoverable in contracts is carefully considered through an exercise of
estimating the final position on completion of those contracts. This includes making a judgment as to the success of any claims,
including those which may be subject to a legal process for recovery.
Stock provisioning policy
In 2007 the basis on which provisions for obsolete and slow-moving stock were set up was revised to a systematic approach
based on anticipated usage. This requires management at each business unit to make judgments relating both to the extent to
which historic usage is likely to continue into the future, and also on the likely net realisable value of stock.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 49 Metalrax Group PLC
Notes to the Accounts Year ended 31 December 2007
Adoption of new and revised Standards
In the current year the Group has adopted IFRS 7 ‘Financial Instruments: Disclosures’ which is effective for annual reporting periods beginning
on or after 1 January 2007, and the related amendment to IAS 1 ‘Presentation of Financial Statements’. The impact of this has been to expand
the disclosures provided in these financial statements regarding the Group’ s financial instruments and management of capital (see note 26).
Four Interpretations issued by the International Financial Reporting Interpretations Committee are effective for the current period. These are:
II IFRIC 7 ‘Applying the Restatement Approach under IAS 29, Financial Reporting in Hyperinflationary Economies’
II IFRIC 8 ‘Scope of IFRS 2’
II IFRIC 9 ‘Re-assessment of Embedded Derivatives’
II IFRIC 10 ‘Interim Financial Reporting and Impairment’
The adoption of these interpretations has not led to any changes in the Group’s accounting policies.
At the date of authorisation of these financial statements the following Standards and Interpretations which have not been applied in
these financial statements were in issue but not yet effective:
II IFRS 8 ‘Operating Segments’
II IAS 23 (Revised) ‘Borrowing Costs’
II IFRIC 11 ‘IFRS 2 — Group and Treasury Share Transactions’
II IFRIC 12 ‘Service Concession Arrangement’
II IFRIC 13 ‘Customer Loyalty Programmes’
II IFRIC 14 ‘IAS 19 The Limit on a Defined Benefit Asset, Minimum Funding Requirements and their Interaction’
The Directors anticipate that the adoption of these Standards and Interpretations in future periods will have no material impact on the
financial statements of the Group except for additional segment disclosures when IFRS 8 comes into effect for periods commencing on
or after 1 January 2009.
1 Revenue analysis by geographical destination and activity
An analysis of the Group’s revenue is as follows:
2007 2006
£000 £000
Sales of goods 109,185 108,437
Revenue from construction contracts 9,307 11,648
Property rental income 155 148
118,647 120,233
Finance income — 6
Revenue from external customers only 118,647 120,239
2007 2006
£000 £000
United Kingdom 88,622 92,201
Rest of Europe 22,617 21,153
North America 2,712 2,252
Rest of World 4,696 4,627
118,647 120,233
Housewares 25,661 27,640
Engineering Support Services 54,348 54,175
Automotive 42,453 42,471
Intra-Group (3,815) (4,053)
118,647 120,233
Intra-Group sales are charged at prevailing market prices and mostly originate from the Engineering Support Services segment. 50
Notes to the Accounts continued Year ended 31 December 2007
2 Segmental analysis by activity
As noted in the Chief Executive’s Review of Strategy, from January 2008 the Group has been reorganised into two divisions —
Consumer Durables and Specialist Engineering — and future management and reporting will be on this basis. For 2007, the Group
was organised into three operating divisions — Housewares, Engineering Support Services and Automotive — and the segmental
reporting has been analysed on this basis. The principal activities of the three divisions are as follows;
Housewares — produces and markets bakeware, together with associated ranges of kitchen tools to both retail and commercial
markets in the UK and internationally.
Engineering Support Services — provides surface coated metals, architectural, primary and secondary steelwork, mezzanine flooring
and storage equipment and also distribution of tools, fasteners and janitorial products.
Automotive — precision manufacturing activities providing supplies worldwide to automotive, telecommunications, off-road vehicles,
enclosure hardware and brewery bar display markets.
2007 2006
Before Exceptional Before Exceptional
exceptional items exceptional items
items (note 3) Total items (note 3) Total
Operating profit £000 £000 £000 £000 £000 £000
Housewares 1,825 (2,490) (665) 1,316 866 2,182
Engineering Support Services 1,263 (3,217) (1,954) 3,465 (90) 3,375
Automotive 293 (6,510) (6,217) 2,226 (1,184) 1,042
3,381 (12,217) (8,836) 7,007 (408) 6,599
Finance income — 6
Finance costs (1,120) (511)
(Loss)/profit before taxation (9,956) 6,094
Taxation 2,970 (1,497)
(Loss)/profit for the year (6,986) 4,597
2007 2006
Engineering Engineering
Support Support
Housewares Services Automotive Total Housewares Services Automotive Total
Other information £000 £000 £000 £000 £000 £000 £000 £000
Capital 
expenditure 1,370 1,056 3,471 5,897 368 1,202 1,618 3,188
Depreciation 631 1,192 2,024 3,847 840 989 1,495 3,324
Impairment 
losses —— 2,990 2,990 ——— —
Amortisation — 50 — 50 — 80 — 80
Balance sheet
Segment assets 20,025 37,973 30,036 88,034 23,247 36,330 33,002 92,579
Unallocated
assets 2,657 1,163
90,691 93,742
Segment
liabilities 2,997 10,124 7,914 21,035 3,207 10,617 7,365 21,189
Unallocated
liabilities 19,068 18,254
40,103 39,443
ˆ ˆ ˆ ˆ
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 51 Metalrax Group PLC
2 Segmental analysis by activity continued
The unallocated assets and liabilities represent corporate assets and liabilities, cash, tax (including deferred tax) and pension scheme
obligations. Capital expenditure and depreciation above excludes amounts in respect of the parent Company and other Group
companies not included in the segmental analysis.
An analysis of the unallocated assets and liabilities is provided below:
2007 2006
Unallocated Assets £000 £000
Deferred tax asset 1,609 948
Current tax asset 274 —
Corporate assets 774 215
2,657 1,163
2007 2006
Unallocated Liabilities £000 £000
Loan notes 500 750
Current tax payable — 540
Bank overdrafts and loans 12,031 9,936
Pension 3,412 3,159
Deferred tax 1,143 2,128
Corporate liabilities 1,982 1,741
19,068 18,254
3 Exceptional items
Exceptional items are items of income and expenditure that, in the judgement of management, should be disclosed separately on the
basis that they are material, either by their nature or their size, to the understanding of the financial statements and where not to do
so would distort the comparability of financial performance between periods. Items which have been considered appropriate to
disclose as exceptional include: profits and losses on the disposal of non-current assets; restructuring and reorganisation costs including
profits or losses on the disposal of businesses; and significant impairments of other current assets.
2007 2006
£000 £000
Profit on sale of property
(1)
1,472 1,026
Discount on acquisition
(2)
— 852
Reorganisation and restructuring costs
(3)
(9,571) (2,286)
Losses on long-term contracts
(4)
(1,941) —
Provision for stock write-downs
(5)
(2,177) —
Total exceptional items before taxation (12,217) (408)
(1)
Profit on the sale of property arises from the disposal of UK operating sites. In 2007 this related to the sites formerly occupied by
Kenham Tools and Pressings and Prescott Powell, together with part of the GW International site at Burnley.
(2)
The discount on acquisition in 2006 reflected the discount against net asset value on the acquisition of Advanced Quality Solutions
Limited, arising primarily from a revaluation of the Romanian property at the date of acquisition.
(3)
During 2007 £9.571 million of reorganisation and restructuring costs were incurred. These related to:
II £1.999 million of costs incurred as a result of the integration of Belsize into Bacol Fine Blanking and exiting the Belsize site at 
Milton Keynes, together with production inefficiencies arising from the move.
II Other reorganisation and restructuring costs at GW International, MRX Automotive, Cooper Coated Coil/Fabricote, MRX
Romania totalling £2.299 million.
II Write-down of Bacol Fine Blanking fixed assets, stock and debtors plus professional fees incurred in the disposal of the Bacol 
Fine Blanking business amounting to £2.589 million.
II A £1.838 million write-down of assets, restructuring and contractual costs relating to the exit of high volume low margin
automotive business in Romania following the CEO’s strategic review.
II £0.846 million of costs for restructuring the PLC Board together with professional fees in connection with the CEO’s 
strategic review.
Included in the total is £2.990 million arising from impairment losses on plant and equipment. 52
Notes to the Accounts continued Year ended 31 December 2007
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
3 Exceptional items continued
(4)
Down & Francis were involved in two major construction contracts where over-runs and specification changes occurred. These
resulted in contract disputes and loss of profits on other contracts. Claims lodged against these disputes had been in negotiation
over the course of two years. Since publication of last year’s accounts, considerable expense on professional fees had been incurred
in pursuit of these claims. In addition, disproportionate management time was being consumed, which was affecting ongoing
trading. Following a full and thorough review of these contracts, including newly commissioned professional advice, the Company
has negotiated a settlement on these disputes. The settlement and additional costs incurred since the last audited accounts gives
rise to a charge totalling £1.941 million in respect of the disputed and other affected contracts.
(5)
An extensive review of old, obsolete and slow-moving stock has been carried out which gives rise to an additional stock provision
requirement of £2.177 million, in part due to changes in commercial and strategic focus. A new systematic approach to
identification and provisioning for slow-moving stock has been implemented.
4 Finance income and expense
2007 2006
£000 £000
Interest income on loans and bank balances — 6
Total finance income — 6
Net finance cost of defined benefit pension scheme (95) —
Interest on bank loans and overdrafts (1,025) (511)
Total finance expenses (1,120) (511)
Net finance expense (1,120) (505)
5 Operating (loss)/profit for the year
2007 2006
£000 £000
This is stated after charging/(crediting) the following:
Auditors’ remuneration
Audit (including parent Company £27,000; 2006: £20,000) 113 103
Other services 46 27
Depreciation 3,976 3,473
Amortisation of intangibles 50 80
Plant hire 340 352
Property rentals 367 448
Cost of inventories recognised as an expense 62,136 64,306
Discount on acquisition — (852)
Net foreign exchange gain (320) (47)
Staff costs 30,572 31,935
2007 2006
£000 £000
Auditors’ remuneration
Fees payable to the Company’s Auditors for the audit of the Company’s annual accounts 27 20
The audit of the Company’s subsidiaries pursuant to legislation 86 83
Total audit fees 113 103
Other services pursuant to legislation 16 8
Tax services 30 19
Total non-audit fees 46 27 Annual Report 2007 53 Metalrax Group PLC
6 Taxation
2007 2006
£000 £000
Current tax:
UK corporation tax at 30% — 1,332
Previous overprovision (4) —
(4) 1,332
Deferred tax (note 20):
Current year (2,813) 110
Effect of change in rate 47 —
Prior year (200) 55
(2,970) 1,497
Factors affecting the tax charge for the year
(Loss)/profit on continuing activities before tax (9,956) 6,094
Tax on continuing activities at 30% (2,987) 1,828
Effects of:
Expenses not deductible for tax purposes 210 22
Capital profits not taxable (412) (428)
Deferred tax not recognised 376 20
Change in rate 47 —
Adjustment to tax charge in respect of previous periods (204) 55
(2,970) 1,497
Taxation for other jurisdictions is calculated at the rates prevailing in the respective jurisdictions.
7 (Loss)/earnings per share
The basic and diluted (loss)/earnings per share are calculated using the (loss)/profit attributable to equity holders of the parent. The
adjusted earnings per share uses this figure adjusted by the post-tax exceptional charges.
Diluted earnings per share needs to be disclosed when a Company could be called upon to issue shares that would decrease net
profit or increase net loss per share. It would be inappropriate to assume that option holders would act irrationally in exercising out-
of-the-money options when the Company has made a loss and therefore the existing options have no dilutive effect in the current
year. Since there are no other diluting future share issues, diluted (loss)/earning per share equals basic (loss)/earning per share for the
current year. In the previous year there were no potential diluting future shares.
The weighted average number of shares used in the calculation of the basic (loss)/earnings per share, the adjusted earnings per
share, and the diluted (loss)/earnings per share is therefore 119,897,298 (2006: 119,897,298).
8 Dividends (equity)
2007 2006
£000 £000
Final dividend for 2006 paid on 25 May 2007 of 3.75p (2005: final 3.75p) 4,496 4,496
Interim dividend for 2007 paid on 26 October 2007 of 1.65p (2006: interim 1.65p) 1,978 1,978
Total equity dividends paid 6,474 6,474
Proposed dividends
The Directors recommend that no final dividend be paid and a resolution to this effect will be proposed at the Annual General
Meeting to be held on 23 May 2008. Therefore the final dividend amounts to £nil (2006: £4,496,000). 54
Notes to the Accounts continued Year ended 31 December 2007
9 Goodwill and other intangible assets
Other
Goodwill Intangibles
£000 £000
Cost
At 1 January 2006 11,058 250
Arising on acquisitions 298 —
At 1 January 2007 11,356 250
Adjustment to purchase consideration 25 —
Disposals — (250)
At 31 December 2007 11,381 —
Amortisation
At 1 January 2006 — 120
Charge for the year — 80
At 1 January 2007 — 200
Charge for the year — 50
Disposals — (250)
At 31 December 2007 ——
Net book value
At 31 December 2007 11,381 —
At 31 December 2006 11,356 50
Goodwill impairment
Goodwill acquired in a business combination is allocated, at acquisition, to the cash generating units (CGUs) that are expected to
benefit from that business combination. The carrying amount of goodwill had been allocated as follows:
2007 2006
£000 £000
Housewares 4,862 4,837
Engineering Support Services 6,378 6,378
Automotive 141 141
11,381 11,356
The Group tests goodwill annually for impairment, or more frequently if there are indications that goodwill might be impaired.
The recoverable amounts of the CGUs are determined from value in use calculations. The key assumptions for the value in use
calculations are those regarding the discount rates, growth rates and expected changes to selling prices and direct costs during the
period. Management estimates discount rates using pre-tax rates that reflect current market assessments of the time value of money
and the risks specific to the CGUs. The growth rates are based on industry growth forecasts. Changes in selling prices and direct
costs are based on past practices and expectations of future changes in the market.
The Group prepares cash flow forecasts derived from the most recent financial budgets approved by management for the next three
years and extrapolates cash flows to perpetuity excluding any growth.
Other intangible assets
Other intangible assets comprise beneficial contracts identified on acquisition of a subsidiary. 
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 55 Metalrax Group PLC
10 Property, plant and equipment of the Group
Freehold and Short
long leasehold leasehold Plant and
properties properties vehicles Total
£000 £000 £000 £000
Cost or valuation
At 1 January 2006 15,894 557 47,328 63,779
Additions 293 — 2,948 3,241
Acquisition of businesses 6,816 — 1,587 8,403
Disposals (865) — (543) (1,408)
Transfer to current assets (975) —— (975)
At 1 January 2007 21,163 557 51,320 73,040
Additions 3,082 — 2,937 6,019
Disposals (3,354) — (4,671) (8,025)
Exchange adjustment 14 — 15 29
Revaluation increase 8,514 23 — 8,537
Transfer to current assets (2,877) (580) (7,916) (11,373)
At 31 December 2007 26,542 — 41,685 68,227
Comprising
At cost —— 41,685 41,685
At valuation on 31 December 2007 26,542 —— 26,542
At 31 December 2007 26,542 — 41,685 68,227
Aggregate depreciation and impairment
At 1 January 2006 3,122 230 33,804 37,156
Charge for year 322 11 3,140 3,473
Disposals (45) — (469) (514)
Transfer to current assets (233) —— (233)
At 1 January 2007 3,166 241 36,475 39,882
Charge for year 332 11 3,633 3,976
Impairment losses —— 2,990 2,990
Disposals (623) — (3,417) (4,040)
Exchange adjustment 3— 6 9
Eliminated on revaluation (2,878) (252) — (3,130)
Transfer to current assets —— (7,816) (7,816)
At 31 December 2007 —— 31,871 31,871
Carrying value
At 31 December 2007 26,542 — 9,814 36,356
At 31 December 2006 17,997 316 14,845 33,158
The cost or valuation of depreciable assets included above is £58,827,000 (2006: £68,384,000).
The cost or valuation of long leasehold properties included above is £3,590,000 (2006: £2,897,000).
The impairment loss on plant arose in connection with the restructuring in the Automotive division.
Freehold and long leasehold properties were revalued at 31 December 2007 by AtisReal Limited, independent valuers not connected
with the Group, on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent
market transactions on arm’s length terms for similar properties. Details of the revaluation surplus are disclosed in note 23.
At 31 December 2007, had the freehold and long leasehold properties been carried at historic cost less accumulated depreciation
and accumulated impairment losses, their carrying value would have been approximately £16.6 million (2006: £17.9 million). 56
Notes to the Accounts continued Year ended 31 December 2007
11 Property, plant and equipment of the Company
Freehold Plant and
properties vehicles Total
£000 £000 £000
Cost or valuation
At 1 January 2006 2,123 145 2,268
Additions — 51 51
Disposals — (20) (20)
At 1 January 2007 2,123 176 2,299
Additions — 118 118
Disposals — (56) (56)
Revaluation increase 593 — 593
At 31 December 2007 2,716 238 2,954
Comprising
At cost — 238 238
At valuation on 31 December 2007 2,716 — 2,716
At 31 December 2007 2,716 238 2,954
Aggregate depreciation
At 1 January 2006 448 106 554
Charge for year 36 24 60
Disposals — (3) (3)
At 1 January 2007 484 127 611
Charge for year 36 29 65
Disposals — (53) (53)
Eliminated on revaluation (520) — (520)
At 31 December 2007 — 103 103
Carrying value
At 31 December 2007 2,716 135 2,851
At 31 December 2006 1,639 49 1,688
The cost or valuation of depreciable assets included above is £1,851,000 (2006: £1,982,000). The revaluation of the properties is
outlined in note 10.
At 31 December 2007, had the freehold properties been carried at historic cost less accumulated depreciation, their carrying value
would have been approximately £1,603,000 (2006: £1,639,000).
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 57 Metalrax Group PLC
12 Investments of the Company
Shares in
subsidiaries
£000
Cost
At 1 January 2006 29,774
Additions 5,041
At 1 January 2007 34,815
Adjustment to purchase consideration 25
Disposal (250)
At 31 December 2007 34,590
Provisions
At 1 January 2006 4,669
Movement for the year 80
At 1 January 2007 4,749
Movement for the year 50
Disposal (250)
At 31 December 2007 4,549
Net book value
At 31 December 2007 30,041
At 31 December 2006 30,066
The Company has the following principal subsidiaries:
Country of incorporation
or operation Activity Holding%
MRX Housewares Limited Great Britain Manufacturing 100
MRX Engineering Support Services Limited Great Britain Manufacturing 100
MRX Automotive Limited Great Britain Manufacturing 100
Metalrax Group Properties Limited Great Britain Property holding 100
Hidrosib SA Romania Manufacturing 99
Investments in subsidiaries are stated at cost less, where appropriate, provisions for impairment. 58
Notes to the Accounts continued Year ended 31 December 2007
13 Inventories
2007 2006
£000 £000
Raw materials 5,070 7,113
Work in progress 3,728 4,369
Finished goods 4,378 6,586
13,176 18,068
14 Trade and other receivables
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
Trade receivables 23,675 27,639 — —
Other receivables — 705 — 671
Prepayments 663 755 71 17
24,338 29,099 71 688
The average credit period taken on sales of goods is 72 days. No interest is charged on past due receivables. In 2006 the other
receivables related to proceeds from the disposal of properties received during January 2007.
The above amounts are net of an allowance (net of VAT) of £324,000 (2006: £336,000) made for estimated irrecoverable amounts
from the sale of goods. The movements on this allowance account during the year are summarised below:
2007 2006
£000 £000
Opening balance at 1 January 2007 336 563
Increases in provisions 269 198
Written off against provisions (356) (438)
Recovered amounts 75 13
Closing balance at 31 December 2007 324 336
An analysis of the age of trade receivables that are past due as at the reporting date but are not impaired can be seen in the table
below:
2007 2006
£000 £000
1–30 days overdue 2,290 3,289
31–60 days overdue 679 950
> 60 days overdue 917 1,581
Total 3,886 5,820
An analysis of the age of impaired trade receivables is as follows:
2007 2006
£000 £000
1–30 days overdue — —
31–60 days overdue — —
> 60 days overdue 363 394
Total 363 394
The main factors used in assessing the impairment of trade receivables are the age of the balance and the circumstances of the
individual customer. The fair value of trade receivables that are past due or impaired is their carrying amount.
2007 2006
Construction contracts £000 £000
Contracts in progress at the balance sheet date:
Amounts due from contract customers included in
trade and other receivables 223 1,712
Contracts costs incurred plus recognised profit less recognised losses to date 622 3,392
Less: progress billings (399) (1,680)
223 1,712
At 31 December 2007, retentions held by customers for contract work amounted to £398,000 (2006: £407,000). There were no
advances received from customers for contract work.
At 31 December 2007, amounts of £112,000 (2006: £70,000) included in trade and other receivables and arising from construction
contracts are due for settlement after more than 12 months.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 59 Metalrax Group PLC
15 Assets held for sale
Assets held for sale comprise:
Long leasehold property together with plant and equipment following the sale of the Bacol Fine Blanking business;
Plant and equipment in Romania as a result of the decision to exit high-volume low margin automotive businesses; and
Freehold properties at Premier Stairways and Cooper Coated Coil as a result of relocations.
These assets are available for sale and are being actively marketed.
16 Creditors
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
Loan notes 250 250 250 250
Trade payables 15,473 18,181 324 23
Accruals 3,689 1,238 1,281 309
Social security and other taxes 2,520 2,606 546 900
Provisions 384 — — —
Current tax payable — 540 — —
Bank overdrafts and loans 12,031 9,936 23,225 5,847
Other payables 662 905 101 467
35,009 33,656 25,727 7,796
Trade creditors and accruals principally comprise amounts outstanding for trade purchases and ongoing costs. The average credit
period taken for trade purchases is 67 days. The Directors consider that the carrying amount of trade payables approximates to their
fair value.
The increase in accruals in the year is primarily due to items associated with the exceptional charges, detailed in note 3.
Included in other payables is deferred consideration on acquisition of businesses of £227,000 (2006: £502,000).
17 Loans and borrowings
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
Current loans and borrowings
Bank overdraft 2,031 4,936 13,225 847
Bank loans 10,000 5,000 10,000 5,000
Loan notes 250 250 250 250
Total current loans and borrowing 12,281 10,186 23,475 6,097
Non-current loans and borrowings
Bank loans — — — —
Loan notes 250 500 250 500
Total non-current loans and borrowings 250 500 250 500
Total loans and borrowings 12,531 10,686 23,725 6,597
The fair value of the Group’s bank loans and overdrafts at the balance sheet date was £12.0 million (2006: £9.9 million). For the
Group’s other loans and borrowings, the carrying amounts are a reasonable approximation of the financial instruments’ fair value.
The Group has a bank overdraft facility of £14.0 million which is due for renewal on 31 July 2008. Bank overdrafts accrue interest at
1% over the bank’s base rate, are repayable on demand and are covered by cross-guarantees within the Group. Interest accrues on a
daily basis and increases the balance outstanding on the overdraft.
The Group’s bank loan facility allows the Group to draw down a maximum of £15 million. The facility is renewable on 24 May 2011.
During this period the Group is able to draw down variable amounts for fixed periods, usually 6 months. The interest rate is fixed at
0.6% above LIBOR at the date of the drawdown and is payable at the end of the agreed drawdown period.
The Group also has £2 million drawdown foreign currency facility which it uses to fund the Group activities in US dollars and euros.
Interest is payable at 1% above the bank’s base rate and accrues on a daily basis. No amounts have been drawn down at this facility
at the year end (2006: £nil).
The loan notes formed part of the consideration for the purchase of Stackright Building Systems Limited and only become payable if
Stackright Building Systems Limited achieves its profit targets for the years ending 31 December 2007 and 2008. The loan notes
mature in equal proportions on each of 3 consecutive anniversaries of their issuance. They are interest-free. 60
Notes to the Accounts continued Year ended 31 December 2007
18 Provisions
Onerous contract
provision Total
£000 £000
At 1 January 2007 ——
Additional provision in the year 673 673
At 31 December 2007 673 673
Included in current liabilities 384
Included in non-current liabilities 289
673
The onerous contract provision represents management’s best estimate of the cost of maintaining the Group’s operations in Romania
until September 2009 in accordance with the contractual obligation to the Romanian government entered into by Advanced 
Handling Limited.
19 Pensions
Defined contribution plans
The Group contributes to a number of defined contribution pension plans and the total cost charged to income for the year was
£375,000 (2006: £257,000) representing the contributions due to the plans for the year.
Defined benefit plans
The Group operates a defined benefit plan in the UK for qualifying employees, although this is closed to new entrants, which provides
benefits based on final pensionable pay. The assets of the scheme are held separately from those of the Group, being invested with
insurance providers. The contributions are determined by an independent qualified actuary employed by the insurance providers on the
basis of triennial valuations using the attained age funding method. The major assumptions used by the actuary were:
2007 2006 2005 2004 2003
% p.a. % p.a. % p.a. % p.a. % p.a.
Inflation 3.4 3.1 2.8 2.8 2.8
Rate of increase in salaries 3.9 3.6 3.8 3.8 3.8
Pension increases, subject to LPI 3.4 3.1 2.8 2.8 2.8
Discount rate 5.7 5.1 4.7 5.2 5.3
Return on plan assets
Equities 8.4 8.0 7.7 8.7 8.8
Property 8.4 8.1 7.8 7.8 7.8
Bonds 4.9 4.7 4.3 4.8 5.0
Other 4.5 4.5 4.3 4.8 3.8
Total 5.9 5.6 5.2 5.6 5.1
Amounts recognised in the income statement in respect of defined benefit schemes are as follows:
2007 2006
£000 £000
Current service cost 326 564
Interest cost on scheme liabilities 987 952
Expected return on scheme assets (892) (761)
421 755
Actual return on scheme assets (51) (1,357)
The current service cost excludes the cost of insuring death in service benefits.
Of the charge for the year £326,000 (2006: £755,000) has been included in administrative expenses and £95,000 (2006: £nil) 
has been included in finance expense (see note 4). Actuarial gains and losses have been reported in the statement of recognised income
and expense.
The amounts included in the balance sheet arising from the Group’s obligations in respect of defined benefit schemes are as follows:
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
Total market value of assets 16,448 16,464 16,448 13,842
Present value of scheme liabilities (19,860) (19,623) (19,860) (16,863)
Gross pension liability (3,412) (3,159) (3,412) (3,021)
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 61 Metalrax Group PLC
19 Pensions continued
Movements in the present value of defined benefit obligations were as follows:
2007 2006
£000 £000
At 1 January 2007 19,623 20,239
Service cost 326 564
Interest cost 987 952
Contributions from scheme members 230 228
Actuarial gains and losses (270) (1,845)
Benefits paid (1,036) (515)
At 31 December 2007 19,860 19,623
Movements in the fair value of scheme assets were as follows:
2007 2006
£000 £000
At 1 January 2007 16,464 14,425
Expected return on scheme assets 892 761
Actuarial gains and losses (842) 596
Contributions from Company 740 968
Contributions from scheme members 230 228
Benefits paid (1,036) (514)
At 31 December 2007 16,448 16,464
The analysis of the scheme assets and the expected rate of return at the balance sheet date was as follows:
Expected return Fair value of assets
2007 2006 2007 2006
% % £000 £000
Cash and other assets 4.5 4.5 (115) (53)
Group pension contracts 5.9 5.6 16,563 16,517
16,448 16,464
The five year history of experience adjustments is as follows:
2007 2006 2005 2004 2003
£000 £000 £000 £000 £000
Present value of defined benefit obligations (19,860) (19,623) (20,239) (16,079) (15,586)
Fair value of scheme assets 16,448 16,464 14,425 12,147 11,931
Deficit in the scheme (3,412) (3,159) (5,814) (3,932) (3,655)
Experience adjustments on scheme liabilities 270 1,845 (2,500) (368) (890)
Percentage of scheme liabilities (%) 1.4 9.4 (12.4) (2.3) (5.7)
Experience adjustments on scheme assets (842) 596 1,045 366 (38)
Percentage of scheme assets (%) (5.1) 3.6 7.2 3.0 (0.3)
The estimated amount of contributions expected to be paid to the scheme during 2008 is £674,000. 62
Notes to the Accounts continued Year ended 31 December 2007
20 Deferred taxation
Group Company
£000 £000
Balance at 1 January 2006 219 (1,661)
Transfer from income statement 165 45
Acquired with subsidiary 63 —
Transfer from statement of recognised income and expenses 733 723
Balance at 1 January 2007 1,180 (893)
Transfer from income statement (2,966) 25
Transfer from statement of recognised income and expenses 1,320 95
Balance at 31 December 2007 (466) (773)
At 31 December 2007
Accelerated allowances 1,143 182
Losses recognised (654) —
Pension scheme deficit (955) (955)
Asset (466) (773)
At 31 December 2006
Accelerated allowances 2,128 13
Pension scheme deficit (948) (906)
Liability/(asset) 1,180 (893)
Deferred tax on temporary differences has been calculated at the rate of 28% (2006: 30%). The effect of the reduction in the UK
corporation tax rate from 30% to 28% from 1 April 2008 has resulted in a reduction in the deferred tax liability at the end of 2007
of £33,000, of which £14,000 has been credited directly to the statement of recognised income and expenses.
21 Equity share capital
2007 2006
Number of Number of
Ordinary shares of 5p each shares £000 shares £000
Authorised 140,000,000 7,000 140,000,000 7,000
Allotted, called up and fully paid 119,897,298 5,995 119,897,298 5,995
The Company has one class of ordinary shares which carry no right to fixed income.
Capital risk management
As described in the share capital accounting policy the Group considers its capital to comprise its ordinary share capital, share
premium and accumulated retained earnings. In managing its capital, the Group’s primary objective is to ensure its continued ability
to provide a consistent return for its equity shareholders through a combination of capital growth and distributions.
In order to achieve this objective, the Group monitors its gearing to balance risks and returns at an acceptable level and also to
maintain a sufficient funding base to enable the Group to meet its working capital and strategic investment needs. In making
decisions to adjust its capital structure to achieve these aims, either through altering its dividend policy, new share issues, or the
reduction of debt, the Group considers not only its short-term position but also its long-term operational and strategic objectives.
22 Share-based payments
Equity-settled share option scheme
Under the 2007 Sharesave plan employees are granted options to purchase shares in the Company based on a fixed amount each
contributes monthly into a Save As You Earn account. The options are exercisable at a price which represents a 20% discount to the
closing mid-market price averaged over the three days immediately prior to the date of grant. The options vest three years after the
date of grant, although there is scope for early vesting under the plan rules in circumstances such as retirement, redundancy or
change of control. Options lapse if they have not been exercised within six months of vesting. There are no other performance
criteria applicable to the exercise of the option.
At 31 December 2007 options were outstanding as set out below, exercisable for the periods and at the prices stated:
2007 2006
Number of Weighted Number of Weighted
share average share average
Summary of movement in share options options option price options option price
Outstanding at the beginning of the year —— ——
Exercised during the year —— ——
Granted during the year 1,381,629 46p ——
Lapsed during the year —— ——
Outstanding at the end of the year 1,381,629 46p ——
Exercisable at the end of the year —— ——
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 63 Metalrax Group PLC
22 Share-based payments continued
Exercisable
Number of Option six months
Analysis of outstanding options at 31 December 2007 shares price from
Options granted 24 October 2007 1,381,629 46p 1 Dec 2010
The weighted average remaining contractual life of the options outstanding was 2.92 years.
Under IFRS2 the fair value of the options granted has been recognised based on a Black-Scholes model using the following
assumptions:
Year of grant 2007 2006 2005
Risk-free interest rate 4.9% ——
Dividend yield 5.0% ——
Expected volatility 44.4% ——
Expected life (years) 3.08 ——
Option price 46p ——
Fair value of an option 18.84p ——
The expected volatility has been calculated based on the historic volatility of the Company’s share price over the past 3 years,
adjusted for any expected changes to future volatility arising from publicly available information.
The total cost recognised in the consolidated income statement in respect of equity-settled share-based payment schemes amounted
to £15,000 (2006: £nil).
23 Reserves
Capital
Share redemption Revaluation Other Retained
premium reserve reserve reserve earnings
£000 £000 £000 £000 £000
Group
At 1 January 2006 2,732 274 —— 45,467
Profit for the year ———— 4,597
Equity dividends paid ———— (6,474)
Actuarial gain on retirement benefits (net of tax) ———— 1,708
At 1 January 2007 2,732 274 —— 45,298
Loss for the year ———— (6,986)
Equity dividends paid ———— (6,474)
Actuarial gain on retirement benefits (net of tax) ———— (487)
Share-based payments ——— 15 —
Revaluation of land and buildings —— 11,667 ——
Deferred tax liability on revaluation of land and buildings —— (1,405) ——
Exchange losses ———— (41)
At 31 December 2007 2,732 274 10,262 15 31,310
The capital redemption reserve arose in previous years when the Company repurchased its own shares.
The other reserve represents the provision established in respect of the value of equity-settled share options (see note 22).
Capital
Share redemption Revaluation Retained
premium reserve reserve earnings
£000 £000 £000 £000
Company
At 1 January 2006 2,732 274 — 40,866
Loss for the year ——— (1,019)
Equity dividends paid ——— (6,474)
Actuarial gain on retirement benefits (net of tax) ——— 1,686
At 1 January 2007 2,732 274 — 35,059
Loss for the year ——— (1,847)
Equity dividends paid ——— (6,474)
Actuarial gain on retirement benefits (net of tax) ——— (487)
Revaluation of land and buildings —— 1,113 —
Deferred tax liability on revaluation of land and buildings —— (180) —
At 31 December 2007 2,732 274 933 26,251
The Company loss for the financial year amounted to £1,847,000 (2006: £1,019,000). 64
Notes to the Accounts continued Year ended 31 December 2007
24 Movement in equity
Capital
Share Share redemption Revaluation Other Retained Total
capital premium reserve reserve reserve earnings equity
£000 £000 £000 £000 £000 £000 £000
At 1 January 2006 5,995 2,732 274 —— 45,467 54,468
Total recognised income for the year—— —— — 6,305 6,305
Equity dividends paid —— —— — (6,474) (6,474)
At 1 January 2007 5,995 2,732 274 —— 45,298 54,299
Total recognised income for the year—— — 10,262 — (7,514) 2,748
Equity dividends paid —— —— — (6,474) (6,474)
Share-based payments —— —— 15 — 15
At 31 December 2007 5,995 2,732 274 10,262 15 31,310 50,588
25 Notes to the cash flow statement
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
a) Reconciliation of operating profit to 
net cash flow from operating activities
Continuing operations
Operating (loss)/profit (8,836) 6,599 (566) (1,055) 
Depreciation (net of disposals) 4,872 3,428 53 62 
Profit on sale of property (1,472) (1,026) — —
Impairment losses 2,990 — — —
Share-based payment expense 15 — — —
Exchange losses (41) — — —
Discount on acquisition — (852) — —
Amortisation of intangibles 50 80 50 80 
Decrease in inventories 4,891 53 — —
Decrease/(increase) in trade and other receivables 4,099 (3,054) (9,101) (1,446)
(Decrease)/increase in payables (432) 78 704 762
Increase in provisions 673 — — —
Decrease in non-current liabilities (319) (217) (319) (185) 
Cash generated from/(used in) continuing operations 6,490 5,089 (9,179) (1,782)
b) Reconciliation of net cash flow 
to movement in net (debt)/funds
Decrease in cash in the year — (2,713) — (9,308)
New bank loan (5,000) (5,000) (5,000) (5,000)
Decrease/(increase) in bank overdrafts 2,905 (4,936) (12,378) (847)
Loan notes redeemed 250 300 250 300
Movement in net debt (1,845) (12,349) (17,128) (14,855)
Net (debt)/funds at 1 January 2007 (10,686) 1,663 (6,597) 8,258
Net debt at 31 December 2007 (12,531) (10,686) (23,725) (6,597)
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 65 Metalrax Group PLC
25 Notes to the cash flow statement continued
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
c) Net debt reconciled to the balance sheet
Cash and cash equivalents — — — —
Current liabilities: loan notes, bank overdrafts and loans (12,281) (10,186) (23,475) (6,097)
Non-current liabilities: loan notes (250) (500) (250) (500)
(12,531) (10,686) (23,725) (6,597)
d) Acquisitions
Cash consideration — 4,539 — 4,539
Cash acquired — (105) — —
Loans acquired — 1,713 — —
Payment of deferred consideration 549 545 549 545
549 6,692 549 5,084
26 Financial instruments
Risk exposure and management
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes
the Group’s objectives, policies and processes for managing those risks and the methods used to measure them. Further quantitative
information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes
for managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.
Principal financial instruments
The principal financial instruments used by the Group and the Company from which financial instrument risk arises, are as follows:
Group Company
II trade and other receivables II other receivables
II bank overdrafts II inter-company receivables
II trade and other payables II bank overdrafts
II bank loans II trade and other payables
II loan notes II bank loans
II loan notes
The Group occasionally uses forward exchange contracts to mitigate the effect of fluctuations in the US dollar/sterling exchange rate
and euro/sterling exchange rate. At the balance sheet date, the Group had no outstanding contracts for purchase or sale of currency,
nor had there been any significant contracts entered into during the year.
Inter-company receivables are due on demand and so pose no liquidity risk to the Company.
The Company is also party to cross-company guarantees with its subsidiaries relating to bank overdrafts as detailed in note 27.
Categories of financial assets and financial liabilities
The Group and Company hold no financial assets or liabilities categorised as held for trading. All of the Group’s liabilities are
unsecured. 66
Notes to the Accounts continued Year ended 31 December 2007
26 Financial instruments continued
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst
retaining ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the
effective implementation of the objectives and policies to the Group’s finance function. The Board receives monthly reports through
which it reviews the effectiveness of the processes put in place and the appropriateness of the objectives and policies it sets.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s
competitiveness and flexibility. Further details regarding these policies are set out below:
Credit risk
Credit risk arises principally from the Group’s trade receivables. It is the risk that the counterparty fails to discharge its obligation in
respect of the instrument.
Credit risk is managed locally by the management of each business unit. Prior to accepting new customers, credit checks are
obtained from a reputable external source (for example Atradius, creditCHECK, creditsafe.com).
Based on this information, credit limits and payment terms are established, although for some large customers and contracts, credit
risk is not considered to be high, and credit limits can sometimes be exceeded. These exceeded accounts are closely monitored and if
there is a concern over recoverability accounts are put on stop and no further goods will be sold before receiving payments. Pro
forma invoicing is sometimes used for new customers, or customers with a poor payment history, until creditworthiness can be
proven or re-established.
Management teams at each division receive monthly ageing reports, and these are used to chase relevant customers for outstanding
balances. The Board receives monthly reports, summarising the turnover, trade receivable balance and ageing profile of each of the
key customers individually.
A number of the Group’s businesses insure their credit risk. During the year approximately 23% of the Group’s revenue was insured.
No major renegotiation of terms has taken place during the year. There are no customers with restricted accounts.
Concentration of credit risk
While individual businesses may each have a limited number of significant customers, these are usually blue-chip companies where
the credit risk is assessed as low. Given the diverse range of markets and customers with which the Group trades, the credit risk is
spread over a large population and no individual customer is significant to the Group.
The carrying value of trade receivables recorded in the financial statements, which is net of impairment losses, represents the Group’s
maximum exposure to credit risk. Full details are shown in note 14.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt
instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due. The Group’s
policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due.
To achieve this aim, the cash position is continuously monitored to ensure that cash balances (or agreed facilities) meet expected
requirements for a period of at least 90 days. 
The Board monitors annual cash budgets and updated forecasts against actual cash position on a monthly basis. At the balance sheet
date these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations under all reasonably
expected circumstances. The following table illustrates the contractual maturity analysis of the Group’s financial liabilities that must be
settled gross based, where relevant, on balance sheet interest rates and exchange rates prevailing at the balance sheet date.
Group Gross undiscounted cash flows due
In under Between 6 and Between 1 and In more than
Total On demand 6 months 12 months 3 years 3 years
2007 £000 £000 £000 £000 £000 £000
Bank overdraft 2,031 2,031 ————
Bank loans 10,000 — 10,000 ———
Loan notes (note 17) 500 — 250 — 250 —
At 31 December 2007 12,531 2,031 10,250 — 250 —
2006
Bank overdraft 4,936 4,936 ————
Bank loans 5,000 — 5,000 ———
Loan notes (note 17) 750 — 250 — 500 —
At 31 December 2006 10,686 4,936 5,250 — 500 —
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 67 Metalrax Group PLC
26 Financial instruments continued
Company Gross undiscounted cash flows due
In under Between 6 and Between 1 and In more than
Total On demand 6 months 12 months 3 years 3 years
2007 £000 £000 £000 £000 £000 £000
Bank overdraft 13,225 13,225 ——— —
Bank loans 10,000 — 10,000 ———
Loan notes (note 17) 500 — 250 — 250 —
At 31 December 2007 23,725 13,225 10,250 — 250 —
2006
Bank overdraft 847 847 ——— —
Bank loans 5,000 — 5,000 ———
Loan notes (note 17) 750 — 250 — 500 —
At 31 December 2006 6,597 847 5,250 — 500 —
Market risk
Market risk arises from the Group’s use of interest bearing and foreign currency financial instruments. It is the risk that the fair value
of future cash flows of a financial instrument will fluctuate because of changes in interest rates (interest rate risk) or foreign exchange
rates (currency risk).
Interest rate risk 
It is the Group’s policy to reduce interest rate risk by fixing the interest rate for the period of the drawdown on the £15 million loan
facility. The interest rate is fixed for the period of the drawdown at amount of 0.6% above LIBOR on the date of the drawdown. The
bank overdraft and the foreign currency drawdown facility accrue a variable rate of interest at a rate of 1% above the banks’ base
rate. Interest rates are monitored on a regular basis.
Interest rate sensitivity
The annualised effect of a 50 basis point decrease in the interest rate at the balance sheet date on the variable rate debt carried at
that date would, all other variables held constant, have resulted in an decrease in post-tax loss for the year of £7,000 (2006: increase
in post-tax profit £17,000). A 50 basis point increase in the interest rate would, on the same basis, have increased potential loss by
the same amount.
Currency risk
Currency risk arises both on the translation of currency assets and liabilities in the balance sheet as well as from operational
transactions. Historically the Group has not hedged translational credit risk (primarily on its Romanian operations). Group entities
settle liabilities denominated in their functional currency with the cash generated from their own operations in that currency. Where
Group entities have liabilities denominated in a currency other than their functional currency they utilise cash reserves in that currency
or transfer currency within the Group. Where the exposure is substantial they set up appropriate forward contracts to fix the liability.
In order to monitor the continuing effectiveness of this policy, the Board receives a monthly forecast, analysed by the major currencies
held by the Group, of liabilities due for settlement and expected cash reserves. The Group is exposed to currency risk on purchases
made from a major supplier based in the USA and the risk is occasionally hedged using forward exchange contracts. Whilst this is an
economic hedge of the cash flow risk, the Group does not apply hedge accounting. At the balance sheet date the Group had trade
payables of £158,000 (2006: £371,000) denominated in US dollars.
Currency risk sensitivity
The effect of a 10% strengthening of the US dollar against sterling at the balance sheet date on the dollar-denominated trade
payables carried at that date would, all other variables held constant, have resulted in an increase in post-tax loss for the year of
£12,000 (2006: decrease in post-tax profit of £26,000). A 10% weakening in the exchange rate would, on the same basis, have
decreased post-tax loss by £10,000 (2006: £24,000). 68
Notes to the Accounts continued Year ended 31 December 2007
27 Contingent liabilities
The Company had given various cross-guarantees in connection with Group banking arrangements. At 31 December 2007 the
liabilities under these arrangements were £12,031,000 (2006: £9,936,000). 
28 Future capital expenditure
At 31 December 2007 capital expenditure contracted for but not provided in these accounts amounted to approximately £1,337,000
(2006: £122,000).
29 Commitments under operating leases
2007 2006
£000 £000
Minimum lease payments under operating leases recognised in income for the year 619 606
At the balance sheet date, the Group had outstanding commitments for future minimum lease payments under non-cancellable
operating leases, which fall due as follows:
2007 2006 2007 2006
Properties Properties Other Other
£000 £000 £000 £000
Within one year 358 395 288 155
Between two and five years 1,471 548 235 288
After five years 3,295 1,557 — —
5,124 2,500 523 443
30 Employees
2007 2006 2007 2006
Group Group Company Company
Number Number Number Number
Average number during the year:
Monthly paid 491 426 18 10
Weekly paid 1,025 1,201 — —
1,516 1,627 18 10
31 Employee costs (including Directors)
2007 2006 2007 2006
Group Group Company Company
£000 £000 £000 £000
Wages and salaries 27,752 28,199 1,386 801
Social security 2,119 2,915 178 86
Pension costs:
Defined benefit schemes 326 564 85 87
Defined contribution schemes 375 257 57 25
30,572 31,935 1,706 999
Detailed information concerning Directors’ emoluments and share options is shown in the Directors’ Remuneration Report on 
pages 30 to 34.
32 Events after the balance sheet date
On 25 January 2008 the Group acquired the entire share capital of Post Glover LifeLink, Inc. Details of the transaction are given in 
note 33.
On 14 February 2008 the business and certain asset of Bacol Fine Blanking were disposed of for consideration of £0.5 million.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 69 Metalrax Group PLC
33 Acquistion of subsidiary undertaking
On 25 January 2008 Metalrax Holdings Inc, a fully owned subsidiary of the Group, acquired the entire share capital of Post Glover
LifeLink, Inc (PGL) for a cash consideration of £3.0 million. The Company is based in Erlanger, KY, USA and is involved in the
manufacture of isolated electrical power systems and electrical raceways for the medical, laboratory and educational sectors. The
transaction was accounted for by the purchase method of accounting.
Since the acquisition took place after the end of the year the final assessment of goodwill and other intangible assets has not yet been
completed and so the numbers reported below are provisional. For the same reason the Group believes it is not appropriate to report
information regarding revenue and profitability. The final numbers will be reported in the 2008 Annual Report.
The provisional net assets acquired are:
Book value Fair value
£000 £000
Property, plant and equipment 597 597
Inventories 304 304
Trade and other receivables 550 550
Cash and cash equivalents 80 80
Trade and other payables (522) (522)
1,009 1,009
Goodwill 2,034
Total consideration 3,043
Satisfied by cash 3,043
Net cash outflow arising on acquisition
Cash consideration 3,043
Cash and cash equivalents acquired (80)
2,963
34 Related party transactions
Transaction between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and so are not
disclosed as part of the consolidated accounts.
With regard to the Company accounts, during the year the Company incurred costs on behalf of MRX Housewares Limited, MRX
Engineering Support Services Limited and MRX Automotive Limited, all of whom are subsidiaries of Metalrax Group PLC. These
amounts were subsequently recharged.
2007 2006
Amounts Amounts
Amounts due from Amounts due from
recharged related party recharged related party
£000 £000 £000 £000
MRX Housewares Limited 1,072 11,713 587 12,678
MRX Engineering Support Services Limited 1,673 17,768 665 10,798
MRX Automotive Limited 2,005 15,955 986 15,840
4,750 45,436 2,238 39,316
The recharges relate primarily to the reallocation of insurance, employee benefits, audit and other professional fees, and vehicle
leasing charges provided at a Group level, together with management services provided by the Company on behalf of its subsidiaries.
In addition the Company is party to a cross-guarantee arrangement with its subsidiary companies with regard to their bank overdraft
facility as detailed in note 27.
Remuneration of key management personnel
The remuneration of key management personnel of the Group is set out below in aggregate for each of the categories specified in 
IAS 24 Related Party Disclosures. Further information about the remuneration of individual Directors is provided in the Directors’
Remuneration Report on pages 30 to 34.
2007 2006
£000 £000
Short-term employee benefits 1,218 930
Post-employment benefits 145 123
1,363 1,053
Directors’ transactions
None of the key management personnel were party to any transactions falling within Schedule 6 to the Companies Act 1985 or 
within IAS 24.
ˆ 70
Shareholder information
Analysis of shareholdings
Shareholders at 31 December 2007 analysed by number of shares held
Number 
Range of shares held Holdings % of shares %
1–1,000 555 18.11 279,960 0.23
1,001–5,000 1,233 40.23 3,556,254 2.97
5,001–10,000 547 17.85 4,127,026 3.44
10,001–100,000 599 19.54 16,893,424 14.09
100,001+ 131 4.27 95,040,634 79.27
Total 3,065 100.00 119,897,298 100.00
Shareholders at 31 December 2007 analysed by type of holding
Number 
Range of shares held Holdings % of shares %
Individuals 2,299 75.02 31,431,457 26.22
Banks or nominees 687 22.41 83,824,806 69.91
Investment trust 5 0.16 18,824 0.02
Insurance company 4 0.13 58,500 0.05
Other company 66 2.15 4,277,400 3.56
Other corporate body 4 0.13 286,311 0.24
Total 3,065 100.00 119,897,298 100.00
Financial calendar 
23 May 2008 Annual General Meeting
August 2008 Interim Results
October 2008 Interim Dividend
March 2009 Annual Results 
Capital gains tax
The official market value of the Company’s ordinary shares at 31 March 1982 was 46.5 pence each. Since that date the Company
has declared sixteen scrip issues of 10% each, which had the cumulative effect by 31 December 2006 of reducing that figure to the
equivalent of 10.1 pence.
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 71 Metalrax Group PLC
Five Year Record
2007 2006 2005 2004 2003
£000 £000 £000 £000 £000
Revenue 118,647 120,233 104,009 95,167 104,350
Operating (loss)/profit (after exceptional items) (8,836) 6,599 6,022 11,172 11,850
(Loss)/profit before taxation (after exceptional items) (9,956) 6,094 6,067 11,406 12,047
(Loss)/profit for the financial year (6,986) 4,597 4,414 9,190 8,135
Net assets
Non-current assets 49,346 45,512 39,555 34,829 31,227
Current assets 41,345 48,230 43,871 48,999 25,100
Total assets 90,691 93,742 83,426 83,828 56,327
Current liabilities (35,009) (33,656) (20,431) (20,045) (344)
Non-current liabilities (5,094) (5,787) (8,527) (6,236) (2,020)
50,588 54,299 54,468 57,547 53,963
Key statistics
(Loss)/earnings per share (5.83p) 3.83p 3.68p 7.61p 6.78p
Dividends per share paid 5.40p 5.40p 5.40p 5.40p 5.40p
Dividend cover (times) N/A 0.7 0.7 1.4 1.3
Return on shareholders’ funds* (13.8%) 8.5% 8.1% 15.9% 15.2%
Return on assets† (17.5%) 12.2% 11.1% 19.4% 22.0%
Share price — high 87.0p 82.0p 88.5p 100p 86p
— low 15.5p 61.5p 68.25p 74p 58p
* Profit for the year/total equity
† Operating profit/net assets
Note: 
(i) 2007–2004 are reported under IFRS. 2003 as previously reported under UK GAAP . Notice is hereby given that the forty-fourth Annual General Meeting will be held at the Burlington Hotel, 126 New Street, Birmingham, 
B2 4DH on Friday 23 May 2008 at 12.15 pm.
The business of the meeting will be to pass:
(A) Ordinary resolutions
1 To receive the report of the Directors and the audited accounts for the year ended 31 December 2007.
2 To confirm the Directors’ recommendation that no final dividend be paid.
3 To receive the Directors’ remuneration report and the report of the Auditors thereon.
4 To re-elect AP Pearson as a Director.
5 To elect AJ Richardson as a Director.
6 To elect MJ Stock as a Director.
7 To elect IH Paling as a Director.
8 To appoint Deloitte & Touche LLP as Auditors and to authorise the Directors to determine their remuneration.
(B) Ordinary resolutions as special business:
9 THAT
(a) the amended rules of the Metalrax Group PLC Long Term Incentive Plan 2006 a summary of the principal terms of which
is set out in the Appendix to the Chairman’s letter to shareholders dated 14 April 2008 and the Rules of which are
submitted to the Meeting and signed by the Chairman by way of identification, be and is hereby approved; and 
(b) the Directors be and they are hereby authorised to do all acts and things which they may consider necessary or expedient
for the purpose of establishing and carrying the said plan into effect.
10 THAT
(a) the amended rules of the Metalrax Group PLC Executive Share Option Plan, a summary of the principal terms of which is
set out in the Appendix to the Chairman’s letter to shareholders dated 14 April 2008 and the Rules of which are
submitted to the Meeting and signed by the Chairman by way of identification, be and are hereby approved; and 
(b) the Directors be and they are hereby authorised to do all acts and things which they may consider necessary or expedient
for the purpose of carrying the amendments to the said plan into effect including making any further amendments
thereto required to obtain the approval of HM Revenue & Customs to the amendment to Part A under the provisions of
Schedule 4 to the Income Tax (Earnings and Pensions) Act 2003.
(C) Special resolutions
11 THAT the Directors of the Company be and are hereby empowered pursuant to Section 95 of the Companies Act 1985 to allot equity
securities (within the meaning of Section 94 of the said Act) for cash pursuant to the authority given by ordinary resolution number 7 at
the 2005 AGM as if Section 89(1) of the said Act did not apply to any such allotment provided that this power shall be limited:
(a) to the allotment of equity securities in connection with a rights issue in favour of or general offer or open offer to ordinary
shareholders where the equity securities respectively attributable to the interest of all ordinary shareholders are proportionate (as nearly
as may be) to the respective number of ordinary shares held by them (but subject to such exclusions or other arrangements as the
Directors may deem necessary or expedient to deal with problems under the law of any territory or the requirement of any regulatory
body or any stock exchange in any territory or in connection with fractional entitlements or otherwise); and
(b) to the allotment (otherwise than pursuant to sub-paragraph (a) above) of equity securities up to an aggregate nominal value of
£299,000 being 5% of the current issued share capital,
and shall expire at the conclusion of the next annual general meeting of the Company or fifteen months from the date of the passing
of this resolution (whichever shall occur first), save that the Company may before such expiry make an offer or agreement which
would or might require equity securities to be allotted after such expiry and the Directors of the Company may allot equity securities
in pursuance of such offer or agreement as if the power conferred hereby had not expired.
72
Notice of Meeting
Annual Report 2007 Stock Code: MRX Metalrax Group PLC Annual Report 2007 73 Metalrax Group PLC
12 THAT the Company be and is hereby generally and unconditionally authorised to make market purchases (within the meaning of
Section 163(3) of the Companies Act 1985) of ordinary shares of 5p each in the capital of the Company (“ordinary shares”) 
provided that:
(a) the maximum number of ordinary shares hereby authorised to be purchased is 12,000,000 which represents approximately 10% of
the current issued share capital of the Company;
(b) the minimum price which may be paid for an ordinary share is 5p (exclusive of expenses); and
(c) the maximum price at which an ordinary share may be purchased is an amount (exclusive of expenses) equal to 105% of the
middle market quotations for such shares as derived from the London Stock Exchange Daily Official List for each of the five
dealing days immediately preceding the date on which an ordinary share is purchased,
and shall, unless it is (prior to its expiry) duly revoked or renewed, expire at the conclusion of the next annual general meeting of the
Company or 15 months from the date of the passing of this resolution (whichever shall occur first), save that the Company may make
a contract to purchase ordinary shares under this authority before such expiry which will or may be executed wholly or partly after
such expiry, and may make a purchase of ordinary shares pursuant to any such contract as if the authority hereby conferred had not
expired.
On behalf of the Board Ardath Road
DJ Farrimond Kings Norton
Birmingham
14 April 2008 B38 9PN
Notes:
1 Copies of this report are sent to all shareholders of the Company.
2 The Company, pursuant to Regulation 41 of the Uncertificated Securities Regulations 2001, specifies that only those holders of ordinary shares on the Register of members
of the Company as at 6 pm on 21 May 2008 shall be entitled to attend and vote at the Meeting in respect of the number of shares registered in their name at that time.
Changes to entries on the relevant register of Securities after 6 pm on 21 May 2008 shall be disregarded in determining the rights of any person to attend or vote at the
meeting.
3 Members entitled to attend and vote may appoint one or more proxies, who need not be members, to attend and (on a poll) vote. A form of proxy is enclosed. To be
effective, a form of proxy must be completed in accordance with the instructions printed on it and must be deposited at the Company’s Registrars so as to be received not
less than 48 hours before the time fixed for the meeting. Completion of a form of proxy will not affect the right of a member to attend and vote in person at the meeting.
4 Copies of all Directors’ service contracts and the register of Directors’ interests in the Company’s shares will be available for inspection at the registered office of the
Company during normal business hours on each business day from the date of this notice until the conclusion of the annual general meeting and at the place of the Annual
General Meeting for at least fifteen minutes prior to and during the annual general meeting.
5 Copies of the existing Articles of Association will be available for inspection at the registered office of the Company during normal business hours on each business day from
the date of this notice until the conclusion of the Annual General Meeting and at the place of the annual general meeting for at least fifteen minutes prior to and during
the Annual General Meeting.
6. The purpose of Resolution 9 is to amend the rules of the Metalrax Group PLC Long Term Incentive Plan 2006. A copy of the rules as proposed to be amended by
Resolution 9 and a copy of the current rules will be available for inspection at the registered office of the Company and at the offices of Mercers Limited, 
Tower Place, London, EC3R 5BU during usual business hours from the date of this Notice until the date of the Meeting and at the place and on the date of the
Meeting from at least 15 minutes before the Meeting begins until the conclusion of the Meeting. 
7. The purpose of Resolution 10 is to amend the rules of the Metalrax Group PLC Executive Share Option Plan. A copy of the rules as proposed to be amended by
Resolution 10 and a copy of the current rules will be available for inspection at the registered office of the Company and at the offices of Mercers Limited, 
Tower Place, London, EC3R 5BU during usual business hours from the date of this Notice until the date of the Meeting and at the place and on the date of the
Meeting from at least 15 minutes before the Meeting begins until the conclusion of the Meeting. 74 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Shareholder Notes Annual Report 2007 75 Metalrax Group PLC 76 Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Shareholder Notes 14636 11/04/2008 Proof 10 14636 11/04/2008 Proof 10
During 2007 the Group operated through three distinct divisions:
Housewares
Engineering Support Services
Automotive
Metalrax Group PLC make and supply specialist
steel products worldwide, operating in niche
markets with significant barriers to entry.
Welcome to Metalrax
Annual Report 2007 Stock Code: MRX Metalrax Group PLC
Contents
II Headlines 1 II Group at a Glance 2 II Chairman’s Statement 4 II Chief Executive’s Review of Strategy 6
II Chief Executive’s Review of Operations 8 II Operating environments, risks and uncertainties 15
II Corporate and Social Responsibility 16 II Financial Review 18 II Board of Directors 20 II Executive Board 21
II Directors and Advisers 22 II Report of the Directors 24 II Corporate Governance 26
II Directors’ Remuneration Report 30 II Report of the independent Auditors 35 II Consolidated Income Statement 38
II Statement of Recognised Income and Expense 39 II Consolidated Balance Sheet 40 II Company Balance Sheet 41
II Cash Flow Statements 42 II Accounting Policies 43 II Notes to the Account 49 II Shareholder information 70
II Five year record 71 II Notice of Meeting 72 II Group Operations 77
Metalrax }niche
Annual Report 2007 77 Metalrax Group PLC
Group operations
Housewares 
GW International
(formerly George Wilkinson (Burnley) and Microwise
Cookware)
Progress Works, Elm Street, 
Burnley, Lancashire BB10 1PB
Tel: 01282 415511   Fax: 01282 433112
‘Progress’ consumer bakeware, kitchen tools and
gadgets.
‘Microwise’ microwave cookware.
Samuel Groves
Norton Street, Hockley, Birmingham B18 5RQ
Tel: 0121 554 2001  Fax: 0121 523 2924
‘Mermaid‘ bakeware and cookware.
‘Longlife‘ catering equipment.
RTA 
Station Road, Great Ryburgh, 
Fakenham, Norfolk NR21 0DX
Tel: 01328 829292   Fax: 01328 829667
Wood and metal wine racks.
Innovative kitchen products.
Bathroom furniture.
MRX China Limited
Room 1307–8, Dominion Centre,
43–59 Queens Road East, Wanchai, Hong Kong
Enquiries to GW International
Engineering Support 
Services  
Advanced Handling
Northfields Industrial Estate,
Market Deeping, Peterborough PE6 8LD
Tel: 01778 345365   Fax: 01778 341654
Providing integrated handling solutions
Commercial Bearings
Bordesley Green Road, Birmingham B9 4TP
Tel: 0121 766 1370   Fax: 0121 773 8238
Industrial bearings
Cooper Coated Coil
Great Bridge Street, West Bromwich
West Midlands B70 0DJ
Tel: 0121 521 1500   Fax: 0121 521 1526
Surface coated metals
Down and Francis
Ardath Road, Kings Norton, Birmingham B38 9PN
Tel: 0121 433 3300   Fax: 0121 459 9222
Structural engineering and steel fabrications
Fabricote
Unit 38, Planetary Industrial Estate,
Planetary Road, Wednesfield, 
Wolverhampton WV13 3XB
Tel: 01902 864422   Fax: 01902 305442
Surface coated metals
Makespace Mezzanine Floors
Unit 1, Millfield Road Industrial Estate,
Donington, Spalding, Lincolnshire PE11 4UR
Tel: 01775 822060   Fax: 01775 822061
Lightweight mezzanine floors 
Metalrax
Bordesley Green Road, Birmingham B9 4TP
Tel: 0121 772 8151   Fax: 0121 772 6135
Storage systems, shelving 
and roller conveyor systems
Premier Architectural Metalwork
Unit 300, Catesby Park, Eckersall Road, 
Kings Norton, Birmingham B38 8SE
Tel: 0121 451 1212   Fax: 0121 451 1220
Architectural metalwork
Sections and Tubes
Hall Street, West Bromwich, 
West Midlands B70 7DW
Tel: 0121 553 2721   Fax: 0121 500 5002
Cold rolled metal sections
Stackright Building Systems
Charleywood Road, Knowsley Industrial Park (North),
Kirkby, Merseyside L33 7SG
Tel: 0151 548 3666   Fax: 0151 548 3777
and Units 1 and 2, Bloxwich Road, 
Walsall WS2 7BD
Tel: 01922 474455 Fax: 01922 474477
Building Systems
Welland Engineering Supplies
Northfields Industrial Estate,
Market Deeping, Peterborough PE6 8LD
Tel: 01778 380371   Fax: 01778 346916
Distributor of fasteners, hand tools 
and maintenance products 
Automotive 
Bacol Fine Blanking
(business sold 14 February 2008)
Sherwood Road, Aston Fields Industrial Estate,
Bromsgrove, Worcestershire B60 3DR
Tel: 01527 874205   Fax: 01527 833761
Fine blanking to 630 tonnes capacity
MRX Automotive
(formerly Bacol Industries, 
Kenham Tools and Pressings and Prescott Powell)
Middlemore Industrial Estate, Middlemore Road,
Smethwick, West Midlands B66 2EQ
Tel: 0121 558 3911   Fax: 0121 558 8798
Presswork to 700 tonnes capacity
Deep drawing and ironing
Tube manipulation and assemblies
B.S.C. Diecasting
Fryers Close, Bloxwich, Walsall, 
West Midlands WS3 2XQ
Tel: 01922 710070   Fax: 01922 408008
Zinc and aluminium pressure diecasting
Toolspec
Sedgwick Road, Luton, Bedfordshire LU4 9DT
Tel: 01582 572626   Fax: 01582 596891
Tube manipulation and assemblies
Weston Body Hardware
Crossgate Road, Park Farm Industrial Estate,
Redditch, Worcestershire B98 7SN
Tel: 01527 516060   Fax: 01527 526060
Locks, handles, latches and ancillary products
MRX Romania
Hidrosib S.A.
Sibiu, Romania
Enquiries to MRX Automotive 
Engineering and manufacturing facilties 
This document is printed on Take 2 Offset,
made from 100% recycled fibres sourced
from post consumer waste only.
14636METALRAXCOV spine:Layout 1  12/4/08  10:02  Page 2 14636 11/04/2008 Proof 10 14636 11/04/2008 Proof 10
Registered Office
Ardath Road, Kings Norton
Birmingham B38 9PN
Tel: 0121 433 3444
Fax: 0121 433 3325
Website: www.metalraxgroup.co.uk
E-mail: info@metalraxgroup.co.uk
Registered in England 793639
Metalrax Group PLC
Annual Report 2007
Metalrax Group PLC          Annual Report 2007
14636METALRAXCOV spine:Layout 1  12/4/08  10:03  Page 4