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.
My friend who is a high rise glass-window installer has had to relocate to Hamilton this year because of lack of work in Auckland.
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.
Well, I guess they sort of delivered what they promised. Revenue basically constant and they seem to be well on their way to deliver a 1 cts per share EPS at the end of the FY - hey if Covid plays nice and the building industry manages to deal with the boom, it might be even more.
No surprises and company delivering what they promised to - wouldn't this be one of the indicators to invest into them?
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Funny how Metro falls 10% today when they said 2 months ago that EBIT would be c. $10m below last year and it was at $3m v $12.8m.
Clearly that was only ever happening because of costs squeezing margins.
Todays reaction may well be the correct one but you cant say it was a shock to the market can you?
Funny how Metro falls 10% today when they said 2 months ago that EBIT would be c. $10m below last year and it was at $3m v $12.8m.
Clearly that was only ever happening because of costs squeezing margins.
Todays reaction may well be the correct one but you cant say it was a shock to the market can you?
Market has the benefit now of comparing it with other building material companies like STU & FBU.
another Dog of a NZ company. Make more per year invested in AVZ than taking losses in MPG - glad I got out when I did. In spite the fact of securing some heavy loss
Funny how Metro falls 10% today when they said 2 months ago that EBIT would be c. $10m below last year and it was at $3m v $12.8m.
Clearly that was only ever happening because of costs squeezing margins.
Todays reaction may well be the correct one but you cant say it was a shock to the market can you?
Methinks the shock’ is that didn’t paint a very rosy picture for the rest of the year and said you’ll have to wait until Feb before we’ll tell you if things are still bad, got worse or improving.
Market hates uncertainty …even though some current investors keep the faith.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
To think that just before the mid August Lockdown we were discussing an imputed MPG Dividend here
If STU can pull a whole bunch of rabbits out the hat in the current times - then what's wrong with MPG ?
Perhaps a nice stiff corrective Cap Raise to deal with borrowings may return the MPG ship back from the
heavy listing to one side & laying low in the water ? .. could be harsh medicine but may fix some of the inherent issues
in one foul swoop
Maybe dumping the Aussie Ops off to an eager Aussie buyer could help things as well ?
And a session of surgically pruning out the excessive deadwood lurking high in the canopy could be in order too ..
Recruiting a beady eyed really sharp Cost Accountant to snipe out Margins issues another must do ..
Do I need to re-post the to do list from the annual report release? Has anything on that list been achieved? Do we need to add another item to that list being the culling of the cast of thousands called the "exec team"?
Disclosure: I have been (and still am) on exec teams. That is not an exec team; it is a committee.
Disclosure #2: one of my key clients sells glass for around the home (not in the home, one of the regular posters can confirm I disclosed this to them privately some time ago) and business is going gangbusters over budget and well over last year (almost +50%) with margins down very slightly on budget but better than LY off the back of price rises. Yes we have longer lead times right now but we mitigated that with larger safety stock levels. Shame Metro can't do the same numbers given they specialise in glass....we don't.
Disclosure: I bought into Metro after post-COVID in expectation they would do what we are given they are much larger; I sold once it became apparent they were doing the opposite.
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