MPG - Metro Performance Glass

[Shareguy]

Gosh. Ex ceo sells most of his shares. Does not bode well in my opinion.

https://api.nzx.com/public/announcement/445338/attachment/435878/445338-435878.pdf

Ps Had another blue glaze panel replaced last week from Metro.

[winner (n)]

Gosh. Ex ceo sells most of his shares. Does not bode well in my opinion.

https://api.nzx.com/public/announcement/445338/attachment/435878/445338-435878.pdf

Ps Had another blue glaze panel replaced last week from Metro.

Shareguy .....Are they replacing the replacements yet

Disruptions must be a bit tiring eh

[Hectorplains]

Gosh. Ex ceo sells most of his shares. Does not bode well in my opinion.

https://api.nzx.com/public/announcement/445338/attachment/435878/445338-435878.pdf

Ps Had another blue glaze panel replaced last week from Metro.

Near on $15K, that'll buy a nice Nissan March, and enough extra funds to get the windows tinted 

[Shareguy]

Shareguy .....Are they replacing the replacements yet

Disruptions must be a bit tiring eh

Yes some of the same panels have been replaced 3 times.

[Ferg]

The gift that keeps on giving:
https://www.nzx.com/announcements/452285

Another loss and continued support from their bankers.....for now.

[Popeye]

They are under the cosh all right, another $8m of debt and the bankers about to pull up stumps with facility breaches in sight.  Lots of talk about growth without any specific strategies or plans mentioned.  They appear to be holding on for the market to pick up, madly cutting costs in the meantime.  Sure, good progress in DIFOT but it is like improving your stroke technique as the boat slowly sinks (reference Revenue -10.5%)

Any capital raise is going to be painful for shareholders as there is no way they will clear significant debt without some third party swooping in, and they will require sharp terms to take the risk, so significant dilution incoming?  Keep in mind they have circa 35cps debt...

At current sp they only need to make $1m for a 10% return, but that is before the coming capital raise, so you would be brave to put even speculative money into this until the after picture is clear? 


At 31 March 2025, the Group's banking facility stands at $70m, of which $65.5m (31 March 2024 $57.8m) has been drawn down. This has been presented as a current liability in the Consolidated Statement
of Financial Position as the facility has a maturity date of 31 July 2025. The banking facility contains certain conditions which must be completed prior to this date relating to the approval and formal announcement of an equity raise.

[Shareguy]

We are investigating retrofitting double glazing at the moment on a rental property. Filled in the form on Metro glass online webpage.  Finally got a reply a week later that they were wanting to organise a site visit. Their competition was around in a flash before MPG even contacted me I had quotes.

Told MPG not to bother when they rung me. The person on the phone did not even ask why. Not surprised. Just incompetent in my opinion.

[Shareguy]

A morbid fascination with this got me reading their latest annual report

According to the latest annual report the only director holding shares is

Julia Mayne who holds 25,000. The old ceo according to last disclosure sold 190,00 of his 200,000 shares. The ceo was there for some time and had intimate knowledge of the company's future prospects and decided to bail.

If that does not give you warning signs then I suggest you look at the Independent auditors report.

Material uncertainty related to going concern.

Has a net current liability balance of $31.7 million at 31 March 2025 (31 March 2024: net current
We draw attention to Note 1 in the consolidated financial statements which indicates that the Group
liability of $24.0 million) . This includes an outstanding bank borrowings balance of $65.5 million at 31
has a net current liability balance of $31.7 million at 31 March 2025 (31 March 2024: net current
March 2025 (31 March 2024: $57.8 million) with a maturity date of 31 July 2025. The Group has
liability of $24.0 million) . This includes an outstanding bank borrowings balance of $65.5 million at 31
announced it intends to shortly undertake a capital raise with the intention of reducing the bank debt,
March 2025 (31 March 2024: $57.8 million) with a maturity date of 31 July 2025. The Group has
and that it intends to renegotiate the loan facilities with the banking syndicate on mutually acceptable
announced it intends to shortly undertake a capital raise with the intention of reducing the bank debt,
terms with financial covenants that the Group can achieve. As stated in Note 1, these events and
and that it intends to renegotiate the loan facilities with the banking syndicate on mutually acceptable
conditions, along with other matters as set forth in this note, indicate that a material uncertainty exists
terms with financial covenants that the Group can achieve. As stated in Note 1, these events and
that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is
conditions, along with other matters as set forth in this note, indicate that a material uncertainty exists
not modified in respect of this matter.
that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is
not modified in respect of this matter.

I also suggest one looks at their increased debt and comment that they see little improvement in the market in 2026.

Bank borrowings are secured by a first-ranking composite general security deed. The Group's bank borrowing facilities as amended on 14 February 2025 currently comprise a syndicated revolving loan facility of $70 million expiring in July 2025, as well as overdraft and bank guarantees totalling $8.5 million. The Group received covenant amendments during the year.

Good luck to any holders. "Caveat emptor"

[BlackPeter]

A morbid fascination with this got me reading their latest annual report

According to the latest annual report the only director holding shares is

Julia Mayne who holds 25,000. The old ceo according to last disclosure sold 190,00 of his 200,000 shares. The ceo was there for some time and had intimate knowledge of the company's future prospects and decided to bail.

If that does not give you warning signs then I suggest you look at the Independent auditors report.

Material uncertainty related to going concern.

Has a net current liability balance of $31.7 million at 31 March 2025 (31 March 2024: net current
We draw attention to Note 1 in the consolidated financial statements which indicates that the Group
liability of $24.0 million) . This includes an outstanding bank borrowings balance of $65.5 million at 31
has a net current liability balance of $31.7 million at 31 March 2025 (31 March 2024: net current
March 2025 (31 March 2024: $57.8 million) with a maturity date of 31 July 2025. The Group has
liability of $24.0 million) . This includes an outstanding bank borrowings balance of $65.5 million at 31
announced it intends to shortly undertake a capital raise with the intention of reducing the bank debt,
March 2025 (31 March 2024: $57.8 million) with a maturity date of 31 July 2025. The Group has
and that it intends to renegotiate the loan facilities with the banking syndicate on mutually acceptable
announced it intends to shortly undertake a capital raise with the intention of reducing the bank debt,
terms with financial covenants that the Group can achieve. As stated in Note 1, these events and
and that it intends to renegotiate the loan facilities with the banking syndicate on mutually acceptable
conditions, along with other matters as set forth in this note, indicate that a material uncertainty exists
terms with financial covenants that the Group can achieve. As stated in Note 1, these events and
that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is
conditions, along with other matters as set forth in this note, indicate that a material uncertainty exists
not modified in respect of this matter.
that may cast significant doubt on the Group's ability to continue as a going concern. Our opinion is
not modified in respect of this matter.

I also suggest one looks at their increased debt and comment that they see little improvement in the market in 2026.

Bank borrowings are secured by a first-ranking composite general security deed. The Group's bank borrowing facilities as amended on 14 February 2025 currently comprise a syndicated revolving loan facility of $70 million expiring in July 2025, as well as overdraft and bank guarantees totalling $8.5 million. The Group received covenant amendments during the year.

Good luck to any holders. "Caveat emptor"

Don't follow them anymore (I used to ....), but yes - quite sad to see the slow self destruction of a once market leading company with a wide moat in a quite sheltered market.

Wondering what lessons could be learned from this tragedy ... I guess from an investors perspective its obvious: use a very long bargepole before you touch anything which went through private equity. From a company perspective though - I once thought that with their market domination, local network and our geographic location they are basically bound to stay successful. Well, this was many years ago and clearly - I was wrong.

Sad story, anyway.

[bulltrap]

As they've already systematically rejected all reasonable proposals, my votes (unfortunately I still have several) for last-ditch action would be for management to cooperate on presenting a case for merger/acquisition with Viridian to the Commerce Commission.

Metro's main excuse for rejecting the CCP VI Bidco bid, was claiming that a merger would likely be blocked - but ComCom knows its mission is to prevent companies charging too much, not to bankrupt them.

Aside from canvassing competing firms and their market share, there's a pathway to approval via a 'failing firm' argument, as laid out in ComCom's Mergers and Acquisitions Guidelines (Attachment E). It's clear enough to me, as a half-awake observer, that Metro broadly meets ComCom's 'failing firm' criteria. Crescent said they'd independently seek pre-approval from ComCom, but chances of approval are surely better if Metro management and auditors front up with an honest self-assessment.

Regarding that long-threatened capital raise, what can I say about moving at a snail's pace and oozing a trail of slime? One minute it's for funding growth or buying equipment (not paying down debt!), and the next minute it slips out that it's to pay down debt after all - even though it'll barely make a dent.

When Ryman last came around begging for cash, I didn't give them a cent, and have no regrets. (And it's not just because Sharesies were too useless to give me the option.)

[bulltrap]

As they've already systematically rejected all reasonable proposals, my votes (unfortunately I still have several) for last-ditch action would be for management to cooperate on presenting a case for merger/acquisition with Viridian to the Commerce Commission.

Turns out that Viridian (now as Viridian NZ BidCo) finalised their submission to ComCom the same day I posted that, and it's now visible in redacted form on the ComCom case register here, along with ComCom's initial response.

Metro pushed back again in an announcement, saying that the application gives:

... a misleading view of the glass industry in New Zealand, as well as Metro's own position and outlook.

Their response reads as if the application claims Metro is going out of business - a 'failing firm' argument as I suggested - but from a quick skim that doesn't seem to be Viridian's angle. That is, unless Metro is carelessly referring to redacted content, not in the public version.

Rather, Viridian gives a list of many market players and estimates of market share. These suggest Metro is well below their claimed '50% market share' (e.g. in their NZX summary), which I guess is many years out-of-date and only considers NZ-based processors.

Glass doesn't have to be processed locally - just as it's no longer manufactured locally - and Viridian's numbers show that local processors are indeed having their arses shipped to them by pre-processed imports.

We can get by with a 'local marketplace' of companies importing, fitting and installing those imports, and these activities have a low barrier to entry. Local processing is increasingly just a supply chain optimisation for special-case orders.

[bulltrap]

Update on ComCom case extends the decision date from today (28th July) to 20th October.

No sign of the promised Statement of Issues yet.

[bulltrap]

I see ComCom released their Statement of Issues last night.

From a quick skim, since there's a quite an array of geographical markets and services, there's not much room to move without weakening competition somewhere. Some of this hinges on whether NZ is one market or two per-island markets, which they're not too sure on yet.

The part I find most interesting is where (section 94) they outline the 'counterfactual' scenarios (what happens if merger is rejected), and put the call out for further submissions on which is more likely:

1. (redacted)
2. Metro raises new capital, refinances loans, and keeps operating with 'improved cashflow' - in particular by progressing Amari proposal

Given we (the public) aren't even being told what the options are, I interpret this as specifically requesting a submission from Metro themselves, who have apparently so far limited their engagement to second-guessing ComCom via media and NZX announcements.

As a doting (but very minor) Metro shareholder who takes the view that accepting the Amari proposal and cap raise is akin to ceremonially giving away the bride along with a dowry, I will be voting to make option 2 less likely. Let's see what's behind door number 1.

[Shareguy]

3 cents already. Someone's bailing.

[bulltrap]

Yup, something like 7.5% of the company traded today, mostly at 3c... at that scale, not many candidates for who's selling. Wonder what's up?

Looks like either Opito Trust (Masfen) or Takutai (Wells) sold out - trade volume is consistent with either ~20M-odd holding.