Metro Glass signals ‘strategic review’

Chairman Sir John Goulter will not seek re-election.

Glass processor Metro Performance Glass has announced a strategic review of “all aspects of the company,” seven weeks after a barracking from investors at its annual meeting.

In a statement to the NZX, Metro chairman Sir John Goulter the review was “a consequence of significant variations in the timing of both residential and commercial work put in place in New Zealand between Metro Glass’ assumptions and the actual market.”

“This follows on from performance management efforts and initial review work undertaken in recent months, including the current engagement of an external specialist organisation to assist in improving manufacturing productivity at Highbrook.

“The strategic review will assess the company’s present strategy, longer-term market assumptions, and how the group’s business model should be tailored accordingly. We expect this to be completed by March 2018.”

The company said its operating earnings and net profit for the six months to September 30 would be similar to the same period last year.

It said it expects improved results for the 2018 full year compared to the year to March 2017. Further guidance will be provided when the half-year results are released on November 20.

Dividends to shareholders for 2018 would be in line with 2017, the company said.

Capital expenditure, previously expected to be $25 million for the year, had been reduced to $20 million.

Sir John, whose chairmanship was strongly criticised at the annual meeting, said he would not be seeking re-election when he is next due to stand.

The company said it would consider succession options as part of the strategic review.

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