MPG
21/11/2014 08:30
HALFYR
REL: 0830 HRS Metro Performance Glass Limited
HALFYR: MPG: Interim results for the two months ended 30 September 2014
Metro Performance Glass on track to meet prospectus forecasts
New Zealand's largest value-added glass processor Metro Performance Glass
Limited (NZX.MPG; ASX.MPP) reports interim results for the 2015 financial
year in line with expectations. It also said it is on track to meet forecasts
made at the time of its July 2014 initial public offering (IPO).
Sales for the two months to 30 September 2014 were $31.5 million. Profit
before interest, tax and abnormal items (including IPO expenses of $3.9
million), was $7.0 million. This result is in line with the prospectus
forecast.
Profit after tax was $806,000.
Metro Performance Glass began trading after it acquired Metroglass Holdings
Limited following its IPO on 29 July 2014. As a consequence comparative
figures cannot be provided for the same period in the 2014 financial year.
Metro Performance Glass Chairman Sir John Goulter says: "Metro Performance
Glass is performing well and in line with forecasts we set out at the time of
our IPO. This reflects continued growth in the residential housing market and
commercial property markets that continue to benefit from the resilient
economy and the Christchurch rebuild."
Metro Performance Glass Chief Executive Nigel Rigby says: "As forecast at the
time of the IPO, the housing market continues its upward trajectory, driven
by strong housing growth, particularly in Auckland and Christchurch.
"In July, annualised residential building consents were forecast to increase
from approximately 21,000 in December 2013 to approximately 25,000 in
December 2014. This trend continues to play out and Metro Performance Glass
is benefitting, with sales in the two months up 13.4% versus the prior
corresponding period.
"Commercial revenue has also demonstrated growth and is ahead of the prior
year. The rebound in commercial property markets has been some time coming
but is now beginning particularly in Christchurch," Mr Rigby says.
Cash flow from operating activities for the period was $4.6 million and the
company retains a strong balance sheet with net debt (interest bearing
liabilities less cash and cash equivalents) standing at $47.6 million,
representing net debt to net debt plus equity of 26%.
Auckland Site Consolidation
The company is in the process of consolidating its five Auckland sites into
one purpose-built site at Highbrook in South Auckland.
Once completed, the new site will be the most advanced glass processing plant
in the country. It will automate glass cutting, toughening, double glazing
unit (DGU) manufacture and edgework processes and deliver Metro Performance
Glass significant operating efficiencies and productivity improvements in
future years.
"The project, which has an estimated capital cost of $21.5 million, is
approximately 80% complete and remains on schedule and on budget. We expect
to commission the plant in early 2015," Mr Rigby says.
Dividend
As outlined in the prospectus, the Directors will consider whether to pay a
dividend for the six months ended 31 March 2015 in May 2015. No dividend will
be payable for the period ended 31 September 2014.
Outlook
"Indications are that revenue growth will remain strong through to the end of
the financial year. Glass is a late cycle product, which we believe lags
consents on average by nine months. Assuming the current consents continue to
flow through to sales activity, we expect Metro Performance Glass to achieve
the prospectus forecast sales revenue of $117.8 million and profit after tax
of $9.4 million," says Sir John Goulter.
For further information contact:
Nigel Rigby David Carr
Chief Executive Officer Chief Financial Officer
+64 (0) 27 703 4184 +64 (0) 27 839 3504
Reconciliation of GAAP to non-GAAP profit measures:
Two months to 30 September 2014
$M
Profit after tax 0.80
Add back: taxation expense 1.85
Add back: net finance expense 0.43
Add back: Abnormal items (IPO expenses) 3.92
Profit before interest, tax and abnormal items 7.00
Metro Performance Glass' standard profit measure prepared under New Zealand
GAAP is profit after tax. The company has used non-GAAP profit measures in
this document of 'profit before interest, tax and abnormal items' when
discussing financial performance. The Directors believe this measure provides
useful information to evaluate the performance of the business. Non-GAAP
profit measures are not uniformly defined and the measure used in this
document may not be comparable with measures used by other companies.
About Metro Performance Glass
Metro Performance Glass (NZX.MPG; ASX.MPP) is the largest value added glass
processor in New Zealand. It produces a range of customised glass products
that are predominantly used in residential and non-residential construction
applications such as windows, doors, internal partitions, balustrades,
facades, showers, mirrors, furniture and splash backs. Metro Performance
Glass has national coverage through 17 decentralised sites, including five
major processing sites, a fleet of over 260 service vehicles and more than
700 employees across New Zealand. Learn more: www.metroglass.co.nz
End CA:00257915 For:MPG Type:HALFYR Time:2014-11-21 08:30:05
