MPG - Metro Glass

[winner69]

no worries .... bright future

Our strategic programme continues to unlock the potential of the business, with investments in capability, quality, and a strong focus on improving our offering to customers. This creates value opportunities for the business alongside building insulation regulation changes expected to be introduced in our markets during FY23

[Balance]

Sales didn't grow but biggest issue is GM falling from 48% to $43% .... shocking .... early $8m impact on pcp

Selling prices didn't keep up with 'rapid increases in material costs'

Competition with a new player with the latest technology & efficiency.

The end is neigh.

[t.rexjr]

alongside building insulation regulation changes expected to be introduced in our markets during FY23

These new regs are likely to put even more pressure on margin with even budget builds having to use top shelf products. It will remove a 'premium product' as well as requiring the ability to produce that product on a large scale.

[t.rexjr]

Had all the tail winds, now starting to face head winds.

Yeah, nah, nah.....

Interestingly this is the first time in my experience that an 'economic slowdown' has not been foreshadowed by a construction slowdown.
I suspect what we will have this time is a self-fulfilling prophecy

[Beagle]

no worries .... bright future

Our strategic programme continues to unlock the potential of the business, with investments in capability, quality, and a strong focus on improving our offering to customers. This creates value opportunities for the business alongside building insulation regulation changes expected to be introduced in our markets during FY23

How many times have we heard them say that lol Only MPG in the middle of a building boom could stuff things up this badly. Uninvestable.

[Leemsip]

Loss is like $4m odd once you take out the one time revenue boost from COVID subsidies ($3m other revenue)

debt up $10m during the year to $65.

Its going to get real ugly if top line revenue declines.... which it probably will in 2023 and 2024 as the construction industry comes off

Agree they need a bailout from investors, cant carry this debt load and be in a loss making position for long.

Slow motion train wreck in progress

[Leemsip]

Have to admit I was looking forward to this report. Highlight of the week.
Does that make me a bad person?

[Sideshow Bob]

Have to admit I was looking forward to this report. Highlight of the week.
Does that make me a bad person?

No, many of us love a good train wreck.....

Well, only if not a holder.

[Arbroath]

Loss is like $4m odd once you take out the one time revenue boost from COVID subsidies ($3m other revenue)

debt up $10m during the year to $65.

Its going to get real ugly if top line revenue declines.... which it probably will in 2023 and 2024 as the construction industry comes off

Agree they need a bailout from investors, cant carry this debt load and be in a loss making position for long.

Slow motion train wreck in progress

Definitely does not look great compared to how say Steel & Tube has made a lot of cash in similar market conditions but clearly absent the price pressures from a new competitor.

However, debt is actually only up $4.3m to $52.3m from a year ago driven by higher inventory and the second half of FY22 the ebit was c. $2.9m against $5.1m in second half of FY21. The real damage to FY22 was done in the first half when costs went up and they couldn't recoup it in increased pricing (maybe defending important relationships against APL?).

It will be interesting to see if the price increases they've put through will deliver a higher ebit for first half '23 than the $3.0m for first half '22. I would've thought raising some equity (1:1 at 12c = $22m) to get the debt lower would be prudent but the Board have never been interested in raising like Steel & Tube did to take the balance sheet issues off the table...

[RTM]

How many times have we heard them say that lol Only MPG in the middle of a building boom could stuff things up this badly. Uninvestable.

Not sure about that...FBU were not exactly stellar in relatively recent times. And then of course we have this:
https://www.stuff.co.nz/business/128...ated-this-year