MPG
27/05/2015 08:30
FLLYR
PRICE SENSITIVE
REL: 0830 HRS Metro Performance Glass Limited
FLLYR: MPG: Metro Performance Glass meets earnings forecasts
New Zealand's largest value-added glass processor Metro Performance Glass
Limited (NZX.MPG; ASX.MPP) reports earnings for the eight months ended 31
March 2015 in line with the forecasts made at the time of its July 2014
initial public offering (IPO).
Net profit after tax (NPAT) was $9.6 million for the eight months to 31 March
2015, slightly ahead of the company's prospective financial information (PFI)
forecast of $9.4 million. Sales were $115.0 million, slightly lower than the
PFI forecast of $117.8 million as capacity constraints within the
construction industry led to delays in the conversion of consents to revenue.
Comparative figures cannot be provided for the previous financial year as
Metro Performance Glass only began trading at the time it acquired Metroglass
Holdings Limited via its IPO on 29 July 2014.
"Metro Performance Glass has had a solid start as a publicly listed company,
achieving the first period earnings objectives set out in its 2014
prospectus" Metro Performance Glass Chairman Sir John Goulter said.
"The company has captured the growth in the residential housing and
commercial property markets, achieved its core financial objectives and
completed the opening of its new flagship plant in Auckland. It has been a
busy and challenging period and the company is well positioned for the
future."
Dividend
Consistent with the PFI, Directors have approved the payment of a maiden
dividend of 3.6 cents per share (fully imputed for New Zealand shareholders)
payable on 4 August 2015 to shareholders registered as at 5 pm on 20 July
2015.
Operational performance
Metro Performance Glass Chief Executive Nigel Rigby said: "We are very
pleased with the way the company has performed during the period. The
combination of the IPO, the plant upgrade in Christchurch, the new plant and
the consolidation of our five Auckland sites into our new purpose-built
facility has been very challenging."
"Sales have been slightly weaker than expected at the time of the IPO as we
believe residential housing consents are now taking longer to convert into
sales, reflecting industry capacity constraints. However we believe we have
continued to retain our market share."
"Commercial markets are active and anecdotal evidence suggests commercial
sector work is increasing. Nevertheless, the conversion of acceptances of
forward orders into revenue is difficult to predict, with many jobs
experiencing delays."
"Despite the challenges, we have managed to achieve our operating objectives
and to meet our core financial targets" Mr Rigby said.
Auckland Site Consolidation
During the year the company completed the consolidation of its five separate
Auckland sites into one purpose-built site at Highbrook in South Auckland.
"The Auckland plant and site consolidation has been a large and demanding
task. After some initial start-up difficulties, the plant has settled down
and is now operating well and is performing to expectations," Mr Rigby said.
"Additionally, we have managed to exit our previous sites at a cost that was
within our initial estimates."
"We appreciate the support of our customers during this difficult start-up
phase. We are confident the site is now meeting our service leadership
proposition to customers."
Outlook
"Reflecting the industry constraints on capacity, we believe the current
building cycle will last longer but have a lower peak. The frequent delays to
projects in both the residential and commercial markets could make
achievement of the PFI revenue target for the six months to 30 September 2015
more challenging." Sir John Goulter said.
"Offsetting this uncertainty, we are further ahead than planned in respect to
cost-out initiatives arising from the Auckland site consolidation and
automation. Given all these factors, we will be better placed to update the
market at, or prior to, our Annual Shareholders Meeting to be held on 26
August.
For further information contact:
Nigel Rigby David Carr
Chief Executive Officer Chief Financial Officer
+64 (0) 27 703 4184 +64 (0) 27 839 3504
End CA:00264843 For:MPG Type:FLLYR Time:2015-05-27 08:31:02
