Metroglass profit $19.4m

One of Metroglass' vehicles delivering glass.
One of Metroglass' vehicles delivering glass.
Metro Performance Glass has delivered a $19.4million net profit for the year to March 3, down from $21.3million a year earlier.

It had to absorb the costs of a major acquisition in the Australian market, the impact of declining building activity in Canterbury, and a dip in Wellington activity after the Kaikoura earthquake last November.

Reflecting its Australian Glass Group acquisition last September, total revenue rose 30% to $244.3million, with earnings before interest, tax, depreciation and amortisation, normalised to exclude $1million of one-off expenses associated with the purchase coming in 20% higher than the previous year, at $44.9million.

The company will pay a final dividend of 4c per share, fully imputed for New Zealand shareholders, to equal total dividends in the previous year of 7.6 cents per share.

It is assessing AGG’s "short-to-medium-term capital requirements to allow it to achieve its significant potential over the medium term".

"While it is still early days for us, AGG has proved a sound investment to date,"  chief executive Nigel Rigby  said in a statement to the NZX.

"Both sales and ebitda [came] in ahead of our expectations for the seven months to 31 March, 2017."

Seven months’ trading from AGG contributed revenue of $30.5million and ebitda of $4.7million and would have contributed $52million and ebtida of $9million, had MPG owned the asset for the whole of the financial year.

Chairman John Goulter said in statements  yesterday  the company was in a development investment phase that came with "some initial cost and will provide improved returns over time".

- Patrick Smellie

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