Engineering group Metalrax has said it is trading in line with expectations just weeks after warning it would be unable to continue trading without a refinancing deal.
The Kings Norton firm, which announced last week it had agreed a crucial deal with banks which secured the future of hundreds of workers, told investors it had seen a slight improvement in trading.
Speaking at the company’s annual general meeting at the Burlington Hotel, in Birmingham, chairman John Crabtree also revealed the company had made further progress on its refinancing plans.
He said: “I can now report that trading has continued to improve in the meantime and accordingly the board believes that it will meet current market expectations for 2009.
“On 2 July 2009, Metalrax announced that its Romanian subsidiary, Hidrosib, had applied to the Romanian courts to commence insolvency proceedings, so as to stem losses running at approximately £100,000 per month.
“The group also announced then that progress was being made regarding the refinancing of its bank debt and that outline funding proposals had been received from the group’s banks, HSBC and The Royal Bank of Scotland, and these were being considered by the group and would require agreement of the pension trustees and the pension regulator. I can report that we have reached agreement on outline terms with the banks and pension trustees. This agreement is subject to legal documentation and approval by the pensions regulator and a further announcement will be made in due course.”
The company produces and markets bakeware sold in the UK market, sells kitchen accessories and also makes specialist products for the medical, specialist metal coating and premium automotive sectors. Annual results published at the end of June revealed a £16.2 million loss in 2008.