MPG - Metro Glass

[Beagle]

Mentioning debt reduction today a bit odd ......but signals impairment on the way and the need to remain within convenants. Clear as.

The guys who sold Metro for $366m in 2007 were indeed fortunate and good on them.

Since then they gone broke and restructured and all sorts of things and in spite of that is operationally still a very sound and solid company. But one that is not really suited to being listed if greased up to be a growth company.

Agreed. One can't help but wonder why they bothered investing in Australia when its so clear management already has had its work well and truly cut out for them trying to get their existing Kiwi operations running smoothly and efficiently. I suspect we might see the day where they exit that investment. Mentioning demand might go soft in the medium term is softening shareholders up for the possibility that all their recent capital improvements might actually amount to a big fat "nothing" from a profit perspective.

[Beagle]

I believe none of this bonus is to be paid

That said, I agree with your rant 100%

A one off incentive that was proportionate to performance criteria for the current
financial year (in particular, delivery of the capital installation program
and manufacturing improvement plan) will be awarded.

Good to get things off your chest. I maintain this is a shareholder rort, being paid a material incentive for nothing more than implementing a capex plan, the benefits thereof are yet to be felt in any way. Bit like Warehouse management being paid a huge bonus for lower financial performance.
Early days but I'll believe all these so called manufacturing efficiencies from their capex expenditure when I see them.

[winner69]

Agreed. One can't help but wonder why they bothered investing in Australia when its so clear management already has had its work well and truly cut out for them trying to get their existing Kiwi operations running smoothly and efficiently. I suspect we might see the day where they exit that investment. Mentioning demand might go soft in the medium term is softening shareholders up for the possibility that all their recent capital improvements might actually amount to a big fat "nothing" from a profit perspective.

Simple — the market (greedy shareholders) demanded growth

Australia acquisition is/was eps accretive in a sense

[winner69]

Good to get things off your chest. I maintain this is a shareholder rort, being paid a material incentive for nothing more than implementing a capex plan, the benefits thereof are yet to be felt in any way. Bit like Warehouse management being paid a huge bonus for lower financial performance.
Early days but I'll believe all these so called manufacturing efficiencies from their capex expenditure when I see them.

Wonder what he got for ‘extending his restraint of trade to two years’

Thought you would be more appalled at the years salary he’s getting ( even though part of his contract)

[carrom74]

Not much movement with the SP despite the downgrade... may be the market expected it to be worse.No word on the dividends though on the update.I am guessing 4c would be retained.

[Beagle]

Shareholders weren't the greedy ones in my opinion. The promoters pumped this up as a growth story from the outset and set the expectations of the market artificially too high for obvious commercial reason so they could maximise the float price...just like other floats in recent years like TGH and EVO. These three all have a number of things in common. Plenty of talk of growth that hasn't really eventuated and balance sheets grossly inflated with goodwill presently stated at very dubious level's.
I think all three will continue to disappoint shareholders in the foreseeable future.

[Pavan Sharma]

Not sure how they are struggling this bad in the middle of a construction boom, had a mate call them up for a quote, they said they'll send someone in 2 months, they appear to be flat out so not sure whats the story. Maybe they bit off more than they can chew and cant get enough staff

[crighton100]

As I said a few weeks ago,I spoke to an installer [has his own business] & he said their problem was quality control [they have heaps of business,but stuff ups are costing them big time].So it probably is a staff problem ,with inexperienced people employed,perhaps a bit more staff training might improve successful output & the bottom line.I sold out at the $1 price,making a small loss,but have bought back in at .71,so I think they will at least pay dividends that far exceed bank deposits.Hope so anyway..

[jimmybuffett]

As I said a few weeks ago,I spoke to an installer [has his own business] & he said their problem was quality control [they have heaps of business,but stuff ups are costing them big time].So it probably is a staff problem ,with inexperienced people employed,perhaps a bit more staff training might improve successful output & the bottom line.I sold out at the $1 price,making a small loss,but have bought back in at .71,so I think they will at least pay dividends that far exceed bank deposits.Hope so anyway..

Metro chairman Peter Griffiths pretty much confirmed the issues are around trying to manage quality while being so busy. Paraphrasing from NBR on 5th April, he says the supply chain is chocka, any mistakes made impact schedule, and they are operating at full capacity the whole time.

[t.rexjr]

Metro chairman Peter Griffiths pretty much confirmed the issues are around trying to manage quality while being so busy. Paraphrasing from NBR on 5th April, he says the supply chain is chocka, any mistakes made impact schedule, and they are operating at full capacity the whole time.

They'd have to be having many major balls-ups to significantly effect their overall performance. I've done a few factory tours and they are slick operations. Not buying it...