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Metroglass confirms on track for full year, as interim sales rise 13%

Friday 21st November 2014

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Metro Performance Glass, which has more than half of New Zealand's glass processing market, said it's on track to meet full-year prospectus forecasts after sales rose 13 percent in its first two months as a listed company. 

Profit in the two months ended Sept. 30 was $806,000, reflecting initial public offering costs of $3.92 million and $1.8 million in tax as it couldn't deduct IPO costs, the Auckland-based company said in a statement. It didn't provide a comparable profit figure. Sales rose 13 percent to $31.6 million in the two-month period. 

In the eight months ending March 31, 2015, the company expects profit of $9.4 million, on sales of $117.8 million. Metroglass won’t pay a dividend for this period and directors will decide next May whether to begin payments, the company said. 

MetroGlass is benefiting from a building boom in Auckland and the Canterbury rebuild which follows the earthquake damage in 2010 and 2011. 

"Metro Perfomance Glass is performing well and in line with forecasts we set at the time of our IPO," chairman John Goulter said. "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." 

In July, Metroglass sold 143.7 million shares at $1.70 apiece, to raise some $230.5 million to buy the Metroglass assets from its private equity owners Crescent Capital and Anchorage Capital and senior management. The private equity owners kept a combined stake of 18.5 percent and management retained 3.8 percent. Some $10.9 million went to cover the cost of the offer and $2.8 million went towards reducing debt. Net debt was about $50 million upon listing.

The private equity firm had taken control of Metroglass in 2012 after its previous owner couldn't manage the debt burden of the company.

Shares of Metroglass last traded at $1.94, and have gained 14 percent since listing.

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