MRX

It has been a busy six months for turnaround specialist Andrew Richardson, who took charge of ailing steel products company Metalrax (MRX) last October.

He discovered a company that had hardly changed for 25 years. There was no proper information technology and a top-heavy management structure. Now Richardson can tell at the touch of a button how the various offshoots are performing, when previously it took five weeks to obtain trading statements.

Not only did the board have to be rejigged but so did most of the next layer down, with 14 senior managers collecting their P45s, replaced by nine newcomers. Richardson is focusing on higher-margin niche businesses and withdrawing from low-margin automotive activities. The loss-making blanking company was sold and the Romanian business is expected to follow.

Shares Says: Metalrax has plenty of potential once the dross is swept away and surplus property sold to finance earnings-enhancing acquisitions and reduce debt further.

by: Timon Day