MPG - Metro Glass

[Rawz]

Currently trading on a historical P/E of 8.68. Based on last years profit of $8.5m

This years profit is guaranteed to be lower than last years because for some unexplained reason this lockdown is "significantly" impacting them compared to April 2020. hmmm. I think covid is a convenient excuse.

I don't want to have a guess at what profit they will turn in FY22 (if any) but looks like MPG will be trading on a forward PE in double digits. No thanks.. doesn't warrant it for a company that is selling less glass and making less.

I shouldn't have put a sell price on my first post but still am thinking this is a big fat SELL, especially when you can get into the likes of WHS and MHJ trading on a lower P/E + they actually pay dividends, not just promise them.

I wish nothing but the best for holders. Just disappointed in this company to be honest.

[winner69]

At least debt hasn’t gone up ….so still around $48m

That’s good

[Sideshow Bob]

From BusinessDesk this morning. Probably burned a bit of lawyers fees, but can't be material as no announcement.

Appeal court overturns bonus holiday pay decision

The court of appeal has overturned an employment court decision against Metro Performance Glass, which if upheld, could have cost other businesses hundreds of millions of dollars in holiday backpay.
Last year, the employment court found in favour of the Labour Inspectorate, which argued that Metro Glass had underpaid holiday pay by not appropriately recognising its short-term incentive scheme as part of employees’ gross income.

Read on »

[Balance]

Ongoing saga of a non performer :

https://www.nzx.com/announcements/383222

interim results for the 2022 financial year, achieving revenue growth in Australia in a difficult market and a continued focus to diversity product and customer mix in New Zealand. As announced in September 2021, profitability has been significantly impacted by extensive Covid-19 restrictions and international supply chain costs in the half. As a result, the board took the prudent decision to not consider a dividend alongside the 2022 interim results.

[winner69]

Ongoing saga of a non performer :

https://www.nzx.com/announcements/383222

interim results for the 2022 financial year, achieving revenue growth in Australia in a difficult market and a continued focus to diversity product and customer mix in New Zealand. As announced in September 2021, profitability has been significantly impacted by extensive Covid-19 restrictions and international supply chain costs in the half. As a result, the board took the prudent decision to not consider a dividend alongside the 2022 interim results.

$419,000 isn’t much profit eh Balance

At least not a loss


But ‘pricing strategies’ in place to overcome supply chain problems is a good sign

But I feel that they should be more worried about competition

[percy]

FBU and STU are in the same sector,and are trading well,so why not MPG.?

[Beagle]

All the capex in recent years to streamline and modernise operations has come to nothing.

[Balance]

FBU and STU are in the same sector,and are trading well,so why not MPG.?

As W69 has alerted to - competition.

[Balance]

All the capex in recent years to streamline and modernise operations has come to nothing.

The PE funds bled it dry, sold it to the punters who now are refunding the plant & equipment refurbishment to try & keep MPG competitive against the competitors with the latest & new plant & equipment.

[winner69]

When I talked to Metro guys at an industry get together 4 years ago labour constraints was a major talking point …not just in glass business but in many other related industries ….even painters lol

Seems Metro and others have done little to overcome these issues …even though they knew the building market was going to boom.