- Glass manufacturer and supplier Metro Performance Glass (MPP) has flagged an expected drop in earnings ahead of its full-year financial results
- The company now expects to pull in between $16.5 million and $18 million in full-year earnings before tax and interest — a marked drop compared to $21.8 million in the last financial year
- As a result of the pandemic, the company has noted lower demand from its operations in the commercial construction sector
- However, work from the residential market remains robust, which the company is attributing to government stimulus in Australia and New Zealand, low interest rates and increased confidence in the sector
- Metro Performance Glass shares are trading at 28 cents
Metro Performance Glass (MPP) has flagged an expected drop in earnings ahead of its full-year financial results.
The company’s financial year is rounding up at the end of March and concludes a challenging year for the glass manufacturer and supplier under the pandemic.
The company now expects to pull in between $16.5 million and $18 million in earnings before tax and interest — a marked drop compared to $21.8 million in the last financial year.
As a result of the pandemic, the company has noted lower demand from its operations in NZ’s commercial construction sector. However, work from the residential market remains robust, which the company is attributing to government stimulus, low interest rates and increased confidence in the sector.
Turning to Metro’s Australian operations, revenue remains “broadly in line with the same period last year”, propped up by a similar boom in the company’s residential and double-glazing businesses.
Despite the expected downturn, CEO Simon Mander believes the company’s focus on cash generation and debt reduction over the past two years has enabled it to make good progress towards reducing net debt.
The company now expects to meet its targeted net debt to earnings before expenses ratio of 1.5 by the first half of its next financial year. Net debt this financial year is expected to drop around $18 million to roughly $49 million.
As for dividends, the company’s board continues to review its capital allocation policy and is expected to update shareholders on the final full-year results, which are expected on May 21.
Commenting on the new outlook and the company’s performance overall, Simon has been pleased with the solid and resilient performance from across the group despite COVID‐ 19 disruptions and prolonged uncertainty.
“Our teams are now accustomed to this operating environment and where required can mobilise our COVID‐19 response protocols rapidly, however, lock‐downs like those seen in Auckland and Victoria in recent weeks are very disruptive in the short term to the business, our customers and the broader supply chain,” he added.
Metro Performance Glass shares are trading at 28 cents per share at 10:21 am AEDT.