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16-08-2020, 10:51 PM
#2151
Originally Posted by winner69
Even the three guys who gratefully took the $350m private equity offered them for Metro years ago thought it was ridiculous. That’s how far back the ‘goodwill’ goes.
I always smile when I see the $170.665 Million odd Deficit (Negative Reserve) - Group Reorganisation Reserve sitting in the MPG Balance Sheet
It must have been some fairly good reorganisation
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17-08-2020, 09:16 AM
#2152
Originally Posted by Ferg
What is disappointing is the employees sent home get full pay during COVID (not 80% like others), the bankers get their cash back faster without covenant breaches but what do the shareholders get? Maybe a dividend in fiscal 2022, or calendar 2022. Disappointing IMO. And I struggle to understand the levels of salaries for a simple organisation.....
edit:typo
Jeez, that’s a bit cruel
One could say that corporate welfare (eg subsidy) went indirectly to shareholders ....without that corporate welfare shareholders would have had to pay the wages ...or sack the staff
The corporate welfare might have saved the company from going bust and a complete wipe out for shareholders
Be grateful you’ve still got glaziers etc working for you.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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17-08-2020, 10:37 AM
#2153
Not trying to be cruel at all. Allow me to explain.
What I have observed elsewhere is employees sent home who cannot work from home got 80% of their pay. The employees of businesses I deal with were a) happy to get 80% knowing their personal spend had reduced, b) happy to know the businesses were doing this to survive and c) happy to know they had jobs to come back to given the impending surge in unemployment stats. {I believe c was the primary factor whilst a was accepted through gritted teeth} So I was surprised to see MPG pay 100% thinking 80% was the norm everywhere (else) I looked. Good on them for being a good corporate citizen but my point was that it appears shareholders are their lowest priority. Given their historic issues with staff retention, maybe they were doing this to turn around the lack of loyalty and tenure from a good portion of their workforce....maybe such tactics will pay off in future in better employee/management relations.....but I'm speculating.
After realising I hadn't looked at the IR I also went back and read the posts for MPG for the past 2-3 years. What a train wreck....but it appears they are making the hard decisions that needed to be made (i.e. suspend dividends to reduce debt & write off goodwill) but they are yet to make a decision regarding Australia. If (and that's a big IF) they can turn it around then good on them. But it reminds me of the old joke that Australians have about Kiwis : "how do you get a Kiwi into a small business? Put them into a large business and leave them to it."
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17-08-2020, 02:42 PM
#2154
Member
Have just today bought into MPG (very small qty). Market cap c.$40m. NTA c.$20m. Seems to be reasonably cash generative (post covid). Could be sustainable NPAT of up to c.$20m pa with some disciplined cost out (unproven). Good products and I'm less bearish than some on outlook for construction and building sector. IMHO will be primary beneficiary of low interest rates.
I see this as a 100% in 12-24 months type opportunity, and hopefully a divi resumption at some point.
NB not a ramping post - as I say my exposure is very small.
Cheers
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21-08-2020, 10:59 AM
#2155
Member
https://www.nzx.com/announcements/358415
Update out
Debt down and "Trading results in June and July were pleasing"
But are going to continue to pay down debt rather than resume divis in short term (good move imo)
Disc - small pos
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21-08-2020, 11:07 AM
#2156
The downside is they are going to re brand the company.
The new name is Metro Underperformance Glass.
The new code is MUG.
Dr JPG.
I specify CERTIFIED concrete to make CRAZY paving.
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21-08-2020, 12:27 PM
#2157
Junior Member
Agree with you Traderx, a good long term hold. I bought into MPG some years ago in the 80's and sold out in the 60's, just before the big drop (no prescience on my part). But they seem to have stabilised their act and gone some way with their debt reduction. Most of their intangibles have now been written off, their aussie operation losses have been staunched, and looking ok (perhaps?) and their NZ ops producing a reliable earnings stream. Excluding the intangible writeoffs, which should be greatly reduced in future, an NPAT of around $20m pa is definitely on, and that's an EPS of 11 to 12 cents per share.
disc: have just bought a small holding
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21-08-2020, 02:31 PM
#2158
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21-08-2020, 03:39 PM
#2159
Member
Am a long holder and long time sufferer. I will not post my entry price as I will lose the little self respect and credibility left.
I stayed in the free fall all the way down and averaged down when the sp was around 18c. How not to do things!!!
I like the approach atm: pay down debt, look after staff, don't over promise (and under deliver), reduce exposure to the bigger commercial sector, and eliminate all the book keeping fluffies and nonsense.
I will continue to hold. See light at the end of the tunnel for the sp when debt is low and divvies are being paid again.
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21-08-2020, 04:45 PM
#2160
Originally Posted by Left field
This from NZSA for their members FYI.
Revenue was down 5% at $254.9 million, EBIT was ($69.5 million) including a $86.5 million impairment in
New Zealand goodwill and $4.6 million NSW Australia restructuring costs. This compares to an EBIT of $15.7 million in FY19. The Net Loss after Tax was $77.9 million compared to a NPAT of $5 million in FY19.
We note that Debt to Equity is 106% compared to 56% in FY19.
Lots of warnings here.... Take care holders. ( Disc - don't hold)
Can someone explain to me how if they've been paying Debt down so successfully, how come Debt to Equity is UP vs 2019?
Is this something todo with Goodwill writedown? Thanks
All science is either Physics or stamp collecting - Ernest Rutherford
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