24 May 2018

Glass manufacturer's profit falls with soft market

11:33 am on 24 May 2018

Metro Performance Glass has delivered a disappointing result with net profit down 16 percent on last year.

Metro Performance Glass - Highbrook Business Park

Metro Performance Glass - Highbrook Business Park Photo: SUPPLIED

The glass manufacturer made a net profit of $16.3 million in the year ended in March, while the underlying profit, which excluded one-time items fell nine percent to $30.9m.

Revenue rose 10 percent to $268.3 million, with a 12-month contribution from the Australian Glass Group, while New Zealand sales were flat.

The company said it had dealt with New Zealand cost issues in the first half and also implemented a $20.6m capital investment programme in the fourth quarter to address problems with the Australian business.

Chair Peter Griffiths said it had been a busy transitional year, as the company adapted to softer growth in New Zealand.

"After very strong sales growth over a number of years, we expect that over the next 24 months activity in our core New Zealand market will remain flat before softening over the medium term," Mr Griffiths said, adding that the Australian market may also soften.

A full year dividend of 7.4 cents a share was down on last year, as the company intended to focus on debt reduction.

The company expected to make an underlying profit of between $30m and $33m, with capital expenditure of about $10m, with debt repayments of between

$7m and $10 million.

The company was still looking for a chief executive to replace Nigel Rigby, who left the business in March.