METC Metic Grp

 

TIDMMETC 
 
RNS Number : 1039T 
Metic Group plc 
01 June 2009 
 
 
 
METIC Group Plc 
Company Update 
 
 
Metic Group PLC (AIM: METC), ("Metic", "the Company" or "the Group"), the 
building systems and products group, today notifies Shareholders that it today 
has begun legal proceedings against Northern & Western Insurance Company Limited 
("N&W"). 
 
 
Metic alleges that as a result of N&W's complete failure to deliver funds in 
accordance with the contracted and guaranteed Stand-by Letter of Credit, Metic's 
UK based subsidiary, Melayway Glass ("Melayway"), has incurred a series of 
penalties on domestic contracts in the UK which has had a material impact on the 
performance of its Melayway subsidiary during the last quarter. However, the 
recently announced Queen Mary & Westfield College University has not been 
affected to date. 
 
 
The Company also informs Shareholders that as a result of the above it has 
appointed accountants, Tenon, to conduct a full review of the Group's activities 
which may or may not result in the closure of the Melayway subsidiary. Based in 
Stourbridge, Melayway is primarily responsible for carrying out Metic's UK based 
steel and glass constructions projects. 
 
 
Metic's growing overseas business, which is operated through its Space Decks and 
Portal divisions, is in no way materially affected by the N&W position. As 
announced, the Group has recently won contracts in the Arab Emirates and 
Barbados and is continuing to build a strong pipeline of overseas contracts. 
 
 
Metic is seeking in excess of GBP10 million in damages from N&W through the 
legal action based on the actual and consequential losses it believes its UK 
operations has suffered as a result of N&W's failure to perform. 
 
 
Following the completion of Tenon's review, the Company will provide a full 
update to Shareholders. 
 
 
Paul Williams, CEO of Metic, commented, 
"The impact of N&W's total and unforeseen failure to deliver funds has been 
severe. However, the losses are fully limited to just the domestic market and 
our Melayway subsidiary. Metic's overseas operations continue to progress well - 
having recently won significant contracts in the Middle East and Barbados. 
Further, we continue to enjoy the full support of our Bank during what has 
proven to be a testing period for the business." 
 
 
 
 
Further information: 
 
 
Ireland 
K Capital Source                 Jonathan Neilan                   T: +353 1 663 
3686 
 
 
UK 
Joint Brokers 
Old Park Lane Capital PLC    Forbes Cutler                       T: +44 20 749 
38188 
Seymour Pierce                   John Depasquale              T : +44 207 10 
78000 
 
 
UK Media 
gth Communications                    Toby Hall/Christian Pickel     T: +44 207 
153 8039 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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