Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Metro Glass announces strategic review, reiterates guidance

Metro Glass announces strategic review, reiterates guidance

By Rebecca Howard

Oct. 16 (BusinessDesk) - Metro Performance Glass will put its business under the microscope as the glass products maker's management faces blowback from shareholders unhappy with their ability to grow earnings.

Auckland-based Metro Glass said it will carry out a strategic review of all aspects of its business while trimming forecast capital expenditure for the current financial year by as much as a fifth.

"The strategic review will assess the company’s present strategy, longer-term market assumptions, and how the group’s business model should be tailored accordingly," chair John Goulter in a statement.

The review was sparked by "significant variations" in the timing of both residential and commercial work put in place in New Zealand between Metro Glass’s assumptions and the actual market, he said. The company expects the review to be completed by March 2018.

The share price fell to a record low earlier this month and has been under pressure after the company warned dwindling work in Canterbury and Wellington would weigh on annual earnings, followed by a second steep drop in August on a flat outlook for the first half, despite owning Australian Glass Group for the entire six-month period. The share rose 1 percent to $1.03, having dropped 47 percent so far this year.

Today, Metro Glass said first-half net profit and earnings before interest, tax, depreciation and amortisation to Sept. 30 was similar to the same period last year. The company reported a first-half profit of $11.5 million last year. It will release its first-half result on Nov. 27.

It also said, however, it continues to anticipate improved full-year results. Metro Glass delivered a $19.4 million net profit for the year to March 31.

The Auckland-based company said it now expects its capital expenditure to be "in the vicinity" of $20 million in the year to March 31 versus a prior forecast of up to $25 million. It expects to maintain both net debt and dividend payments to shareholders in the current financial year in line with the prior year. Net debt as at Sept 30 was slightly lower than the $95.4 million reported as at March 31.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Bell Gully: Uncertainty Ahead With New Unconscionable Conduct Legislation

new prohibition against ‘unconscionable conduct’ in trade is one of a number of changes to the Fair Trading Act 1986 that come into force from 16 August 2022. The new prohibition may have wide-ranging implications for many businesses... More>>


Statistics: Food Prices Increase 7.4 Percent Annually
Food prices were 7.4 percent higher in July 2022 compared with July 2021, Stats NZ said today... More>>



REINZ: Market Activity And Prices Continue To Ease, First Home Buyers Start To Return To The Market

New Zealand’s winter property market continues its recent trend, slowing from the pace of sales and price rises of last year — properties stay on the market longer and median prices dip... More>>



Kiwi Group Holdings: Fisher Funds Acquires Kiwi Wealth Business

Kiwi Group Holdings Limited (KGHL) today announced the sale of Kiwi Wealth to Fisher Funds for NZ$310 million... More>>



Retail NZ: Welcomes Return Of Cruise Ships

“Cruise visitors were big spenders in retail prior to COVID-19, and retailers in Auckland will be celebrating the arrival of P&O’s Pacific Explorer this morning... More>>



ASB: Full Year Results: Building Resilience Today And For Our Future

In its 175th year, ASB has reported a cash net profit after tax of $1,418 million for the 12 months to 30 June 2022, an increase of $122 million or 9% on the prior year... More>>