Metro Glass Cuts Debt by NZD 32M After NZD 23.9M Equity Raise
Metro Performance Glass Limited has returned to profitability in the first half of 2025, posting a NZD 4.5 million profit before tax and significantly reducing its debt through a NZD 23.9 million equity raise.
- Profit before tax of NZD 4.5 million reversing prior loss
- Equity raise of NZD 23.9 million primarily used to repay debt
- Net working capital turns positive to NZD 29.2 million
- Revenue slightly down to NZD 108 million with gross profit decline
- Banking facility renegotiated and reduced to NZD 41 million
Return to Profitability
Metro Performance Glass Limited has reported a notable turnaround in its financial performance for the half year ended 30 September 2025. The company posted a profit before tax of NZD 4.5 million, a sharp reversal from a loss of NZD 6.7 million in the same period last year. This improvement signals a successful execution of strategic initiatives aimed at stabilising the business amid challenging market conditions.
Capital Raise and Debt Reduction
Central to Metro Glass’s recovery was a NZD 23.9 million equity raise, which included a rights issue for existing shareholders and a placement to Amari Metals Australia Pty Limited. The proceeds were primarily deployed to repay debt, significantly reducing the company’s net bank debt from NZD 58.9 million to NZD 26.8 million. This deleveraging effort was complemented by a renegotiated banking facility, now set at NZD 41 million with a maturity date extended to September 2028, providing the company with enhanced financial flexibility.
Operational and Market Context
Despite a slight dip in revenue to NZD 108 million from NZD 114 million the previous year, Metro Glass maintained a gross profit of NZD 41.3 million. The company continues to focus on cost reduction and operational efficiencies, including a restructuring program in New Zealand that involved the closure of the Wellington manufacturing facility and other staff adjustments. These measures are part of a broader cost-out programme designed to improve margins and streamline operations.
Segment and Geographic Performance
The Group’s revenue is split between New Zealand and Australia, with New Zealand contributing the majority of sales. The commercial glazing, residential, and retrofit channels remain the core revenue streams. While market conditions in both countries remain subdued, the company’s leadership remains optimistic about growth prospects and is actively pursuing initiatives to enhance profitability across both regions.
Balance Sheet and Going Concern
Metro Glass’s balance sheet shows a marked improvement with positive working capital of NZD 29.2 million as at 30 September 2025, compared to negative working capital in prior periods. The company’s directors have confirmed the financial statements are prepared on a going concern basis, supported by the equity raise, debt reduction, and renegotiated banking facilities. No impairment of goodwill was identified, underscoring confidence in the underlying value of the business.
Bottom Line?
Metro Glass’s financial recovery and strengthened balance sheet set the stage for cautious optimism amid ongoing market challenges.
Questions in the middle?
- How will subdued market conditions in New Zealand and Australia impact Metro Glass’s revenue growth in the next half?
- What further operational efficiencies can Metro Glass achieve following the recent restructuring?
- Will Metro Glass pursue additional capital raises or debt refinancing to support growth initiatives?
