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Metro Glass ready to build on success

NZ NewswireNZ Newswire 24/08/2016 By Paul McBeth

Metro Performance Glass, which has more than half the country's glass processing market, expects to see a "marked improvement" in the coming year as it reaps the benefit of New Zealand's building boom and looks further afield with its recent Australian acquisition.

The Auckland-based company's forward order book for commercial projects has increased since the March 31 balance date and its retrofit double-glazing business is tracking at the same pace of growth as last year, chairman John Goulter told shareholders at Wednesday's annual meeting in Auckland.

The company's future "is looking bright" with Auckland's housing shortage and newly-acquired Australian Glass Group set to add A$45 million ($NZ47m) of annual sales, he said.

"I am pleased to say that Metro Glass has started the financial year well, and continues to benefit from the strong construction market in New Zealand," Goulter said in speech notes published on the NZX.

"To this end, we expect the current year to provide a marked improvement on our previous year's result."

Metro Glass delivered a profit $20.5m in its first full year as a listed company on sales of $188 million. The company achieved the increase in spite of supply constraints delaying the start of some work.

The shares were unchanged at $2.10, having gained 22 per cent this year, outpacing an 18 per cent increase in the benchmark S&P/NZX 50 index over the same period. The shares were sold at $1.70 in an initial public offering in July 2014 raising $244.2m, most of which went to paying the firm's private equity owners.

Chief executive Nigel Rigby told shareholders that the market backdrop continues to favour Metro Glass with building activity supported by low interest rates, high net migration and an under-build leaving a housing shortage.

"We see no sign of this momentum slowing in the immediate future," he said.

BusinessDesk

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