Metro Performance Glass has delivered an $11million profit, at the top end of earlier predictions, underpinned by activity in residential Auckland and commercial Canterbury.
Metro signalled in August it did not expect to make prospectus forecasts of a $12.1million after-tax profit, but it did hit the top end of the new $10million-$11million range.
Metro yesterday maintained its earlier guidance for sales and after-tax profit for the year to March 2016, of $190million and $20million-$22million respectively.
Metro cannot give comparative previous half figures, as it only began trading following its July 2014 initial public offering, after acquiring Metroglass Holdings.
Metro shares, down 21% on a year ago, were unchanged at $1.50 following the announcement.
Chairman Sir John Goulter said Metro had a strong balance sheet and low debt gearing.
''The board sees significant processing, product and distribution opportunities within our existing markets, but will be continuing to monitor any potential acquisition opportunities that will generate increased shareholder value,'' he said in a statement yesterday.
Sir John did sound a note of caution, saying the ''key risk'' to Metro's short-term outlook was present industry delays in initiating and completing commercial projects.
Chief executive Nigel Rigby said Metro had identified several growth opportunities, including glazing capabilities within growing commercial work pipeline and developing the infrastructure behind its rapidly growing Retrofit double-glazing business.
''Construction markets are benefiting from record net migration, low interest rates and rising momentum in building activity, particularly in Auckland and the non-residential rebuild in Canterbury,'' he said in a statement yesterday.
Forsyth Barr broker Suzanne Kinnaird said ''the guidance is consistent with the residential cycle, with consents experiencing a lull in early-mid 2015, which will flow through to subdued activity growth through second-half 2016 estimates.''
Importantly, the outlook beyond second-half 2016 was ''very favourable'', with residential consent growth back into double-digits in recent months.
''With a strong commercial pipeline also in place, and growing, we maintain a favourable view on Metro's earnings growth prospects,'' Mrs Kinnaird said.
Craigs Investment Partners broker Peter McIntyre said while Metro's management had not upgraded the full-year profit after tax guidance of $20million-$22million, they were bullish on the residential market outlook.
Auckland site consolidation was completed, cost savings were running on track and Mr McIntyre noted commercial business was doing well, the order book was up 17% and Retrofit was gaining good traction, with sales up 25.7%.
However, Mr McIntyre cautioned Metro's performance would hinge on how quickly the wider industry capacity constraints were resolved.
