MPG - Metro Glass

[Arbroath]

That article is a good summary of whats happened but one crucial point gets missed....valuation. Right now the enterprise value is $170m at 44c with about $88m debt. The past collapses have always been from way too much debt rather than a bit more than a prudent board would be comfortable with which is they rightly, imho, cut the dividend.

The NZ business is sound..its AGG that is bleeding and has to be got back to at least breakeven ebit. By the time APL enter the fray Metro should have their debt down to about $65-70m.

The cock-up was buying AGG. That's history of course but if they hadn't done that they'd still be $1+ and paying decent dividends. They simply must sort out AGG or sell it for whatever they can get. Personally I'd take the c. $24m FNZC reckon AGG is worth (if there was a buyer) and in one stroke get the debt down before APL are up and running. If they got $20m for AGG combined with NZ cash flow in a years time debt would be about $50m and npat would be c. $18m if the NZ business keeps trucking along. That would a much more comfortable situation for MPG investors.

[Arbroath]

Another 1.5% changes hands - crossed at 42c this morning. Is it Bain still?

[Balance]

Another 1.5% changes hands - crossed at 42c this morning. Is it Bain still?

Unlikely to be anyone else?

[whatsup]

Q will MPG get to sub .40 again and buying range ?

[Arbroath]

Unlikely to be anyone else?

Turns out its ACC. Interesting how NZ Super FUnd puked 10% of the stock at 40c late last year but the ACC boffins obviously sense opportunity and are now up to 6.5%

[Balance]

https://www.nzx.com/announcements/332910

Another one bites the dust - this one after 20 years with Metro Glass.

You gotta love the statement from the CEO : “Geoff has been instrumental in shaping our manufacturing operations in New Zealand and more recently in Australia, and has led the business’ major capital programmes and manufacturing process improvement initiatives. I take this opportunity to thank Geoff for his many years of dedication and the great impact he has made at Metroglass. ”

Yup - everyone has been doing a great job, it seems?

[Balance]

lol,

Maybe ACC and Bain will have a bidding war.

You gonna keep averaging down?

Chill, Ogg - matter of time in this case.

Much much more potential ahead than CVT which is sitting on $120m of 'manuka' honey which is diminishing in value by the hour!

[nomis]

https://www.nzx.com/announcements/332910

Another one bites the dust - this one after 20 years with Metro Glass.

You gotta love the statement from the CEO : “Geoff has been instrumental in shaping our manufacturing operations in New Zealand and more recently in Australia, and has led the business’ major capital programmes and manufacturing process improvement initiatives. I take this opportunity to thank Geoff for his many years of dedication and the great impact he has made at Metroglass. ”

Yup - everyone has been doing a great job, it seems?

I had a laugh at that myself.

[BlackPeter]

https://www.nzx.com/announcements/332910

Another one bites the dust - this one after 20 years with Metro Glass.

You gotta love the statement from the CEO : “Geoff has been instrumental in shaping our manufacturing operations in New Zealand and more recently in Australia, and has led the business’ major capital programmes and manufacturing process improvement initiatives. I take this opportunity to thank Geoff for his many years of dedication and the great impact he has made at Metroglass. ”

Yup - everyone has been doing a great job, it seems?

Actually, having seen Metro Glass operation - they do have a quite a high tech environment, a well oiled logistics and a well trained team. Of course - the company does have lots of problems, but I don't think it would be fair to blame the operations manager for them. I do think their problems are more in the overall strategy: are they providing the right products for the market? Was it sensible to invest into this Australian subsidiary for the sake of growth? Shouldn't they have put more emphasis on future market tendencies instead of past market share?

Sure - Geoff was one voice in the SMT, but I don't think that any of the above questions fall into his main responsibilities;

[Sideshow Bob]

We recently broke some glass at home - bit of an accident on a glass sliding door.

New house, and went to the window joinery company and they put us on to Metro. They didn't have the glass in stock - so had to order it - took between 1-2 weeks.

I thought we weren't going to get invoiced, but turned up 3-4 weeks later. It was an insurance job, and Metro had quoted for it. Invoice came in circa 10% less than the quote. Invoice was supposed to come to us, but went to the insurance company instead - they had already paid out to us.

Nothing wrong with the glass or the job - but some of their basic business processes were not exactly timely or best practice.