Metroglass announces solid FY21 results
METRO PERFORMANCE GLASS
21 May 2021
Metro Performance Glass Limited (NZX: MPG, ASX: MPP) – full year results announcement
for the year ended 31 March 2021
Please find attached the financial information required by NZX Listing Rule 3.5 and 3.6 together with a copy of
Metro Glass’ full year results presentation and Annual Report for the year ended 31 March 2021.
Documents attached:
1. Market announcement in relation to the full year results
2. Full year
results presentation
3. Metroglass’ Annual Report including group financial statements for the year ended 31 March 2021
4. NZX Appendix 1
For the purposes of ASX Listing Rule 1.15.3, Metro Performance Glass Limited confirms that it continues to
comply with the listing rules of its home exchange, the NZX Main Board.
Yours sincerely
Andrew Paterson
Company Secretary
Metro Performance Glass Limited
Authorised by the Metroglass Board.
---
NZX.MPG, ASX.MPP 21 May 2021
Metroglass announces solid FY21 results in year significantly affected by COVID‐19
Summary of the audited results for the twelve months ended 31 March 2021 (FY21)
1
$m New Zealand Australia Group
FY21 FY20 FY21 FY20 FY21 FY20
Revenue 179.8 203.0 52.5 51.9 232.3 254.9
Segmental EBIT
2
19.4 26.4 (0.7) (3.6)
EBIT
2
17.9 21.8
NPAT
3
7.9 9.9
The Group delivered solid FY21 results with resilient performance in the competitive NZ market and
significantly improved performance in Australia overshadowed by the significant impacts of COVID‐19
NZ revenue declined 2% year on year in the 10 months from June 2020 to March 2021 (following the
Alert Level 4 shutdown and ramp up period)
EBIT before significant items down 18% to $17.9m
Statutory net profit after tax of $8.5m up from $(78.9m) in FY20
Strengthened balance sheet with strong operating cash flows driving a 28% reduction in net debt
Intention to resume
dividend payments alongside the FY22 interim results
Metro Performance Glass (Metroglass) today reports financial results for the 12 months to 31 March 2021 (FY21).
CEO Simon Mander said: “The strength in our FY21 results reflect the resilience of our people to keep the busines
moving in disruptive operating conditions. In
New Zealand we started the financial year in an Alert Level 4 lockdown,
but recovered well, achieving good volumes in our Retrofit, and commercial glazing segments. Pleasingly, activity in
those segments and a focus on cost control helped to offset the impacts of the Level 4 COVID lock down in New
Zealand
and increased competitor capacity in the residential window manufacturer segment.
“In Australia, the business continued its positive trajectory with stable operating performance, positive customer
feedback and growth in double glazing sales. The business delivered an improved financial performance, however
external shocks impacted momentum late in the financial year with
the COVID‐19 lockdown in Victoria and severe
flooding in NSW.”
Group Revenue for the year to 31 March 2021 of $232.3m was 9% below last year, with New Zealand down 11% and
Australia up 1%. EBIT before significant items fell 18% to $17.9m. Statutory NPAT improved from $(78.9m) in FY20
to
$8.5m in FY21.
Net debt was reduced by $18.9m this year to $48.0m on 31 March 2021, through strong operating cash generation,
focussed capital expenditure and the sale and lease back of the majority of the New Zealand vehicle fleet.
Note: all non‐Generally Accepted Accounting Principles (GAAP) financial measures are defined and reconciled to a GAAP measure in the 2021 Annual Report, available
here: https://www.metroglass.co.nz/investor‐centre/annual‐interim‐reports/.
1
All prior period comparisons are to the full year ended 31 March 2020 (FY20) unless otherwise stated.
2
Earnings before interest, tax, and significant items (FY21: $1.0m gain on sale of vehicles, FY20: $86.5m impairment of NZ goodwill, $4.6m of NSW restructure costs and
$0.9m of positive tax adjustments relating to prior periods).
3
NPAT before significant items (FY21: $1.0m gain on sale of vehicles, FY20: $86.5m impairment of NZ goodwill, $3.2m of NSW restructure costs and $0.9m of positive tax
adjustments relating to prior periods).
“Our operating environment has evolved in FY21 with the risk stemming from COVID‐19 ever present. As dynamics of
the competitive environment continue to play out, our focus remains on providing a differentiated and market leading
customer experience. Pleasingly, our customer survey results continue to indicate we are heading in the
right direction,
with our highest result to date in New Zealand.”
New Zealand
The business’ operations were regularly impacted by fluctuating COVID‐19 restrictions and international supply chain
disruptions this year, which impacted on momentum across the industry.
Revenue in New Zealand declined 11% to $179.8m in FY21, principally driven
by the Alert Level 4 COVID‐19 lockdown
and ramp up period in April and May 2020. For the 10 months from June 2020 onwards, New Zealand revenue declined
2%, mainly as a result of a slower industry restart in January 2021.
Residential segment revenue fell 17% in FY21, with approximately
55% of this fall attributable to the April and May
2020 period, alongside other impacts from increased competition and the slower restart in January. Revenue in our
Retrofit business grew 16% this year despite the lockdown. Commercial glazing revenue declined 8%, however the
business delivered EBIT growth through improved operational
efficiency. Overall EBIT in New Zealand fell 27% to
$19.4m with savings in factory and glazing costs only partially offsetting lower revenue.
“With the unprecedented operational disruptions and competitive landscape changes faced in FY21 now largely behind
us, the business is firmly focused on the future. Metroglass has a market leading
product and service offering and deep
customer relationships that will continue to remain at the centre of our value proposition.” said Mr Mander.
Australian Glass Group (AGG)
AGG navigated a challenging year, delivering a significant improvement in financial performance despite repeated and
prolonged COVID‐19 related restrictions and disruptions. AGG’s
revenue increased by 1% to $52.5m in FY21 with
strong performance from all states in rebuilding the revenue forgone through the exit from non‐double‐glazing
product sales in NSW. This success was supported by a 9% increase in double glazing sales in FY21.
The business had been on track to
deliver a breakeven EBIT result for the year; however, two external factors
negatively impacted the business in the final quarter. The first was the highly disruptive COVID‐19 snap lockdown
imposed in Victoria in early to mid‐February and the second was the severe flooding in NSW in March. AGG
delivered
an EBIT loss of $(0.7m) in FY21 which while disappointing, was a significant improvement on the EBIT loss of $(3.6m)
in FY20.
AGG is a leading supplier of high‐performance double‐glazing in the south east of Australia, utilising Australia’s best
range of high‐performance soft coat low emissivity (LowE)
performance glass. The business has maintained a similar
level of revenue over the last three years but significantly improved its EBIT results, despite the restructuring of AGG’s
NSW operations and adapting to the impacts of COVID‐19.
Cash flow and balance sheet
Metroglass further strengthened its financial position this year,
reducing net debt by $18.9m to $48.0m. Despite the
disruptions from COVID‐19, the success of Metroglass’ debt reduction means that the group is expecting to be below
its communicated target of a net debt to EBITDA ratio
4
of 1.5x in the first half of FY22.
The combination of a stronger balance sheet, increased confidence in the sustainability of the groups market position
and future financial performance has enabled the board to reassess its capital management priorities.
It is the board’s current intention to resume dividend payments alongside
the company’s FY22 interim results. The
company expects to pay fully imputed dividends of between 50% and 70% of net profit after tax before significant
items. As is usual when declaring a dividend, the Board will consider a range of factors including group financial
performance, one‐off or non‐recurring events,
prevailing and anticipated business and economic conditions.
4
The net debt to EBITDA ratio is calculated on a pre‐IFRS 16 basis, excluding significant items as per bank covenant definitions.
Market conditions and outlook
Residential dwelling consents in New Zealand have remained elevated, despite the pandemic, supporting a healthy
pipeline of work. However, capacity constraints across the wider construction industry may limit growth in the near
term. In south east Australia, the level of residential approvals has significantly improved through
FY21 compared with
the year prior which will provide some support through the 2021 calendar year.
Mr Mander said: “We are increasingly confident that activity across both New Zealand and Australia will be at least
sustained at current levels for the rest of the 2021 calendar year. However, we remain alert
to COVID‐19 risks and the
significant disruptions in international shipping, both of which are likely to continue until the end of 2021.
“The residential segment in New Zealand will continue to be competitive and dynamic through FY22, and we will
continue to take a prudent approach to managing our
costs. Capital expenditure will be focused on essential areas,
but we will also invest for growth where appropriate. In the coming year, we will work hard to support the success of
our customers by providing excellent service and maintaining our market‐leading position in New Zealand and growing
position in Australia.”
The company will provide shareholders with an update on early FY21 trading performance at its Annual Shareholders’
Meeting on the 6
th
of August 2021.
/Ends
Full year results webcast and conference call details
Metro Performance Glass Limited will host a conference call today to review its FY21 results. The briefing is scheduled
to begin at 10am NZDT and can be joined by webcast or conference call.
You can
listen to the webcast via the company’s website: www.metroglass.co.nz/investor‐centre or directly:
https://globalmeet.webcasts.com/starthere.jsp?ei=1449884&tp_key=2a81d0cca0. Please allow extra time prior to the
webcast to visit the site and download streaming media software if required. An online archive of the event will be
available after 2pm on the day.
To join the conference call and have the ability to ask questions, please dial in to one of the numbers below at least 5
minutes prior to the scheduled call time and when prompted, please quote the conference code: 226581.
New Zealand Toll Free 0800 423 972 International +64 (0)9
9133 624
Australia Toll Free 1 800 590 693 United Kingdom Toll Free 0800 358 6374
Australia (Melbourne) +61 (0)3 8317 0929 US/Canada Toll Free 866‐519‐2796
Australia (Sydney) +61 (0)2 9193 3719
For further information, please contact:
Liam Hunt
Investor Relations
(+64) 022 010 4377
liam.hunt@metroglass.co.nz
Authorised by the Metroglass Board.
---
METRO
PERFORMANCE
GLASS
FY21
Annual
Results
Presentation
21
May
2021
Key
messages
•
The
Metroglass
Group
displayed
resilience
throughout
FY21,
supported
by
the
strength
and
dedication
of
its
people
•
Metroglass
delivered
a
solid
result
in
the
competitive
NZ
market,
while
COVID
‐
19
shutdown
impacts
overshadowed
underlying
performance
•
The
Australian
business
turnaround
progressed
well
with
stable
operational
performance
and
significantly
improved
financial
results
•
Metroglass
significantly
reduced
its
debt
in
FY21,
through
strong
operating
cash
flows
and
targeted
capital
expenditure.
Dividends are
now
anticipated
alongside
the
FY22
interim
results
2
3
Our
strategy
and
values
OUR
PEOPLE
•
Strong
focus
on
safety
and
wellbeing
•
Resilient
and
united
team
able
to
adapt
at
pace
and
maintain
service
to
customers
•
First
cohort
of
staff
completed
our
award
‐
winning
Brighter
Minds
programme
•
Growing
apprenticeship
scheme
with
80+
enrolled,
15
qualifying
in
FY21
OUR
CUSTOMERS
•
Remained
connected
to
our
customers,
with
our
deep
relationships
key
•
Strong
customer
survey
results,
with
customers
complimentary
on
our
people,
customer
service
and
project
management
•
Our
Retrofit
channel
revenue
grew
16%,
with
majority
of
customers
investing
in
our
high
‐
performance
LowE
glass
offering
OUR
BUSINESS
•
Business
operations
regularly
impacted
by
fluctuating
COVID
‐
19
restrictions
and
international
supply
chain
disruptions
•
NZ
wage
subsidy
received
($6.5m
in
total,
$6.1m
in
FY21)
•
AGG
successfully
managed
the
increasing
COVID
‐
19
related
restrictions
and
safety
requirements,
but
was
impacted
late
in
the
year
by
a
lockdown
in
Vic
and
NSW
flooding
•
Focus
on
managing
discretionary
costs
and
capex
across
the
group
Unified
and
resilient
throughout
a
disruptive
year
4
NPAT
$7.9m
(FY20:
$9.9m)
GROUP
NEW
ZEALAND
2
AUSTRALIA
Revenue
$232.3m
(FY20:
$254.9m)
‐
9%
EBIT
$17.9m
(FY20:
$21.8m)
‐
18%
‐
21%
Revenue
$179.8m,
‐
11%
(FY20:
$203.0m)
EBIT
$19.4m,
‐
27%
(FY20:
$26.4m)
Revenue
$52.5m,
+1%
(FY20:
$51.9m)
EBIT
($0.7m),
+$2.9m
(FY20:
‐
$3.6m)
Net
debt
$48.0m
(FY20:
$66.9m)
FY21
key
financial
outcomes
1
1
Unless
otherwise
stated,
results
are
shown
in
NZ$m and
before
significant
items.
Details
on
the
significant
items
are
provided
in
note
2.4
to
the
financial
statements.
2
The
full
segment
note
is
available
in
note
2
of
the
financial
statements.
Leverage
ratio
1.7x
(FY20:
2.0x)
‐
14%
‐
$18.9m
5
Residential
consents
have
continued
to
grow
in
NZ,
despite
the
pandemic.
Though
the
momentum
of
actual
activity
has
been
impacted
by
significant
disruptions
In
the
twelve
months
to
March
2021
(on
a
9
‐
month
lagged
basis):
•
Total
residential
consents
rose
8.1%,
or
3.4%
in
floor
area
(sqm)
•
Detached
dwelling
consents
rose
3.3%,
with
a
15.8%
rise
in
multi
‐
residential
which
now
represents
41.1%
of
all
residential
consents
•
Residential
consents
have
continued
to
surge,
surpassing
41,000
residential
consents
in
the
12
months
to
March
2021
(non
‐
lagged),
supporting
a
strong
pipeline
of
construction
activity
Total
NZ
residential
consents
(9
month
lagged,
by
number)
NZ
non
‐
residential
consents
(by
value
$bn)
2
The
value
of
non
‐
residential
consents
for
the
12
months
to
March
2021
(non
‐
lagged)
grew
5.3%
•
North
Island
+15.6%;
South
Island
‐
19.2%
•
As
at
31
March
21
Metroglass’
glazing
forward
books
4%
higher
than
the
prior
year
11684
13366
15473
21176
21438
22141
Mar
‐
19
Mar
‐
20
Mar
‐
21
Multi
‐
residential
Detached
Housing
32,860
34,804
37,614
5.9%
8.1%
2.0
2.1
1.7
5.2
5.0
5.8
Mar
‐
19
Mar
‐
20
Mar
‐
21
South
Island
North
Island
7.1
7.1
7.5
‐
0.4%
5.3%
6
•
Metroglass responded well to fluctuating COVID
‐
19 restrictions and international supply chain
disruptions, however these shocks significantly impacted momentum across the industry
•
The business ramped up after COVID
‐
19 Alert Level 4 restrictions were lifted and saw strong activity
in our retrofit and commercial glazing segments from June onwards
•
Residential segment revenue fell 17% in FY21, with approximately 55% of this fall attributableto the April and May 2020 period, alongside increased competition and the slower industryrestart in January. These competitive dynamics are expected to continue into the coming year,though to a lesser extent
•
Commercial glazing revenue declined 8%, however the business delivered EBIT growth throughimproved operational efficiency
•
Retrofit revenue grew 16% in FY21 and ended the year with a record forward book of work
•
Metroglass remains firmly focussed on its customers and its people. Good progress was made thisyear on improving safety and wellbeing and further expanding the company’s apprenticeshipscheme (15 apprentices qualified in FY21 and 80 are currently enrolled)
•
Pleasingly, the results of our most recent customer survey saw Metroglass receive its highest result todate, demonstrating the strength of our customer relationships
Solid
performance
in
New
Zealand,
while
COVID
‐
19
shutdown
impacts
overshadowed
underlying
performance
in
a
competitive
market
Revenue$179.8m
(11%)
Jun
‐
20
to
Mar
‐
21:
(2%)
EBIT
1
$19.4m
(27%)
1
Before
significant
items.
7
39,577
35,748
38,166
30,261
26,492
24,722
Mar
19
Mar
20
Mar
21
VIC
NSW
ACT
TAS
73,869
66,359
67,111
Residential
construction
activity
in
southeast
Australia
has
stabilised,
as
high
‐
performance
double
‐
glazing
penetration
continues
to
increase
South
east
Australia:
house
approvals
(6m
lagged,
by
number)
1
South
east
Australia:
housing
data
(rolling
12
months)
2
1. Source:
Australian
Bureau
of
Statistics,
number
of
residential
dwelling
approvals
(12
months
to
31
March
2021).
6
‐
month
lag
applied.
2. Source:
Australian
Bureau
of
Statistics,
12
months
to
31
March
2021,
no
lags
applied.
In
the
twelve
months
to
March
2021:
•
Detached
dwelling
(house)
approvals
1
stabilised
with
1.1%
growth,
supported
by
Victoria
+6.8%
and
Tasmania
+1.8%,
offset
by
NSW
at
‐
6.7%
•
Approvals
for
alterations
and
additions
2
improved
13.9%,
with
Victoria
+8.2%,
NSW
+17.4%,
and
Tasmania
+27.4%
•
High
performance
double
‐
glazing
products
sales
continuing
to
grow,
supported
by
changes
to
energy
efficiency
requirements
to
commercial
buildings
in
June
2019
‐
10.2%
1.1%
•
Since
the
middle
of
2020
housing
approval
numbers
have
begun
to
increase,
which
is
flowing
progressively
through
to
commencements
and
completions
•
Housing
approvals
in
the
twelve
months
to
31
December
2020
were
13%
higher
than
the
same
twelve
‐
month
period
last
year
(non
‐
lagged)
13%
6%
‐
5%
‐
20%
‐
15%
‐
10%
‐
5%0%5%
10%15%20%
Jun‐2016
Sep‐2016
Dec‐2016
Mar‐2017
Jun‐2017
Sep‐2017
Dec‐2017
Mar‐2018
Jun‐2018
Sep‐2018
Dec‐2018
Mar‐2019
Jun‐2019
Sep‐2019
Dec‐2019
Mar‐2020
Jun‐2020
Sep‐2020
Dec‐2020
(1)
Approvals
(2)
Commencements
(3)
Completions
8
•
Australian Glass Group (AGG) is now a leading supplier of high
‐
performance double
‐
glazed units throughout southeast of Australia, with its solid service performancerecognised in the market
•
AGG faced prolonged COVID
‐
19 restrictions and disruptions this year (with Victoria
the hardest hit) but remained almost fully operational throughout
•
Delivered 9% revenue growth in the key double
‐
glazing segment, offsetting the
revenue lost through the restructuring of the New South Wales business in late FY20
•
Achieved positive EBIT results for the first three quarters of the financial year,however momentum was impacted in February and March by the snap lockdown inVictoria and severe flooding across New South Wales
•
AGG is now well positioned for growth alongside the increasing adoption of doubleglazing. Recent commercial building regulations have driven increased specificationand demand for double glazing products and similar code changes are scheduled forresidential buildings in 2022/23
The
Australian
turnaround
progressed
well
with
stable
operational
performance
and
a
significantly
improved
EBIT
result
RevenueNZ$52.5m
+1%
EBIT$(0.7m)
vs.
($3.6m)
LY
9
$141.6m
$40.1m
$21.3m
$51.9m
$254.9m
$118.2m
$36.8m
$24.9m
$52.5m
$232.3m
Residential
NZ Commercial
Glazing
NZ Retrofit
NZ
Australian
Glass
Group
Total
group
revenue
FY20
FY21
Fy21:
Metroglass
Group
revenue
(NZ$)
1%
(9%)
16%
(8%)
(17%)
(11%)
Note: The allocation of sales between residential and commercial applicatio
ns is difficult as Metroglass doesn’t always know the end use of a piece of
glass. The categorisation methodology is consistent across
periods, however Commercial Glazing revenue will include some level of residential glazing sales and services.
NZ
revenue
for
the
10
months
excluding
April
and
May
(Alert
Levels
4
&
3):
(2%)
Group
revenue
for
the
10
months
excluding
April
and
May
(Alert
Levels
4
&
3)
:
(1%)
10
FY21:
Financial
results
summary
Segment
results
NZ$m
1,3
FY21
FY20
%
change
New
Zealand
Revenue
179.8
203.0
(11%)
Gross
profit
86.4
104.1
(17%)
Segmental EBIT
19.4
26.4
(27%)
AustraliaRevenue
52.5
51.9
1%
Gross
profit
12.5
11.1
12%
Segmental
EBIT
(0.7)
(3.6)
(80%)
Group
results
NZ$m
1
FY21
FY20
2
%
change
GroupRevenue
232.3
254.9
(9%)
EBITDA
before
significant
items
38.4
43.4
(12%)
Depreciation
&
amortisation
20.4
21.7
(6%)
EBIT
before
significant
items
17.9
21.8
(18%)
Profit
for
the
year
before
significant
items
7.9
9.9
(21%)
Significant
items
0.7
(88.8)
Profit
for
the
period
8.5
(78.9)
Basic
EPS
(cents)
4.6
(42.5)
1
The
definitions
for
all
non
‐
GAAP
measures
of
financial
performance,
and
additional
detail
on
significant
items
are
provided
on
slide
20
of
this
release.
2
FY20
financial
statements
were
restated
to
reflect
a
historic
$1.4m
annual
leave
provision
understatement.
Further
details
are
provided
in
note
7
of
the
FY21
financial
statements.
3
The
full
segment
note
is
available
in
note
2.1
of
the
FY21
financial
statements.
11
21.8
17.9
10.5
6.1
1.8
3.0
0.8
1.3
1.4
1.2
0.3
0.3
FY20 EBIT
Change in April and May NZ EBIT
‐ COVID‐19 Alert Level 4 and 3
lockdowns
NZ Government wage subsidy
‐ COVID‐19
NZ revenue decline
(June 20 ‐ March 21)
NZ gross profit % decline
(June 20 ‐ March 21)
Distribution and glazing
(June 20 ‐ March 21)
Admin, selling and marketing
(June 20 ‐ March 21)
Gross profit %
improvements
Administration expenses
Distribution and other
Other Group costs
FY21 EBIT
FY21:
EBIT
bridge
(NZ$m)
Note:
EBIT
is
before
before
significant
items.
New
Zealand
Australia
(NZ$)
12
FY21:
Group
summary
cash
flow
&
balance
sheet
13
Key
balance
sheet
items
(NZ$m)
FY21
FY20
Net
working
capital
1
24.6
29.0
Property
plant
&
equipment
52.5
59.6
Right
of
use
assets
50.6
50.4
Total
assets
237.9
258.4
Lease
liabilities
60.6
59.5
Net
debt
48.0
66.9
Total
shareholders
equity
84.0
75.8
Key cash
flow
items
(NZ$m)
FY21
FY20
EBIT
before
significant
items
17.9
21.8
Operating
cash
flows
30.4
31.6
Capital
expenditure
7.5
9.5
Dividends
paid
‐‐
•
Net
operating
cash
flows
were
slightly
below
last
year
with
the
impacts
of
the
COVID
‐
19
shutdown
period
only
being
partially
offset
by
cost
savings
and
the
NZ
Government
wage
subsidy
•
Continued
to
focus
on
working
capital
in
FY21
through
close
management
of
trade
debtors
and
inventory
.
Safety
levels
for
raw
glass
inventory
are
being
progressively
increased
at
present
in
response
to
ongoing
international
shipping
disruptions
•
Capital
expenditure
was
reduced
to
$7.5m
in
FY21
with
the
majority
of
this
being
spent
in
the
second
half
•
The
sale
and
leaseback
of
the
NZ
vehicle
fleet
provided
a
net
cash
inflow
of
$5.0m
in
FY21
•
Net
debt
decreased
by
$18.9m
year
on
year
to
$48.0m
as
at
31
March
2021
•
Group
gearing
2
decreased
to
36.3%
from
46.9%
•
Group
net
debt
to
EBITDA
ratio
3
declined
from
2.0x
to
1.7x,
without
adjusting
EBITDA
for
the
impacts
of
the
COVID
‐
19
shutdown
period
in
NZ
1
Net working capital: trade & other receivables + inventory
‐
trade & other payables.
2
Gearing: net debt / (net debt + equity).
3
Calculated
on
a
pre
‐
IFRS
‐
16
(leases)
basis
and
includes
other
minor
adjustments.
Net
debt
reduced
by
$18.9m
in
FY21
supported
by
strong
operating
cash
flows,
focused
capital
expenditure
and
prudent
cost
management
14
$94.3m
$83.3m
$66.9m
$48.0m
Mar
‐
18
Mar
‐
19
Mar
‐
20
Mar
‐
21
A
stronger
balance
sheet
and
increased
confidence
in
the
Group’s
market
positions
and
future
financial
performance
has
enabled
the
Board
to
reassess
its
approach
to
capital
allocation
New Zealand
Net operating cash flow
AGG
Net operating cash flow
(1)
Maintenance
capital
(2)
Strong
balance
sheet
Net
debt
to
EBITDA
range
of
1.0x
–2.0x
(3)
Minimum
dividend
pay
‐
out
ratio
Debt
reduction
Additional
dividends
Share
Buy
‐
backs
Organic
development
and
growth
capex
Acquisition/
divestments
Net operating cash
flow
(4) Excess cash flow
•
The
priority
order
for
the
use
of
capital
going
forward
will
be:
1.
Capital
expenditure
to
maintain
operational
capability,
improve
efficiency
and
create
increased
production
capacity
within
the
existing
manufacturing
footprint
(circa.
$8m
p.a.)
2.
Maintaining
group
leverage
within
a
target
range
of
1.0x
to
2.0x
net
debt
to
EBITDA
3.
Re
‐
establishment
of
a
conservative
and
sustainable
divided
4.
Applying
any
excess
cash
flows
across
the
best
of
several
competing
alternatives.
At
present,
the
Board
sees
merit
in
pursuing
further
reduction
in
net
debt
towards
an
underlying
net
debt
to
EBITDA
ratio
of
1.0x
•
The
Company
has
demonstrated
similar
decision
making
in
recent
years
with
excess
cash
being
applied
to
debt
reduction
in
preference
to
other
alternatives.
15
Metroglass’
dividend
policy
16
•
Despite
the
disruptions
from
COVID
‐
19,
the
success
of
Metroglass’
debt
reduction
means
that
the
group
is
expecting
to
achieve
its
communicated
target
of
a
net
debt
to
EBITDA
ratio
of
1.5x
in
the
first
half
of
FY22
•
The
Board’s
current
intention
is
to
resume
dividend
payments
alongside
the
company’s
FY22
interim
results
•
Going
forward,
Metroglass
expects
to
pay
fully
imputed
dividends
of
between
50%
and
70%
of
net
profit
after
tax
before
significant
items.
In
determining
any
dividend,
the
Board
will
consider
a
range
of
factors
including
group
financial
performance,
one
‐
off
or
non
‐
recurring
events,
prevailing
and
anticipated
business
and
economic
conditions
•
Increasing
confidence
that
activity
levels
across
both
NZ
and
Australia
will
be
at
least
sustained
at
current
levels
for
the
rest
of
the
2021
calendar
year,
though
in
NZ
industry
capacity
constraints
may
limit
growth
in
the
near
term
•
The
residential
segment
in
NZ
will
continue
to
be
competitive
and
dynamic
•
In
Australia,
we
are
confident
that
AGG
has
embedded
the
improvements
achieved
in
FY21.
The
level
of
residential
approvals
in
Australia
improved
significantly
through
FY21
which
will
provide
some
support
through
the
2021
calendar
year
•
The
group
remains
alert
to
COVID
‐
19
risks
and
the
significant
disruptions
in
international
shipping.
Both
are
likely
to
continue
until
the
end
of
2021
•
Will
continue
to
take
a
prudent
approach
to
managing
costs
with
a
focus
on
essential
capital
expenditure
Outlook
for
FY22
–healthy
pipeline
of
work
Change
image
17
Building
resilience
and
defending
Metroglass’
leadership
position
in
New
Zealand
Grow
and
improve
profitability
in
Australia,
benefiting
from
increasing
demand
for
double
‐
glazing
Our
balance
sheet
is
strong
and
robust
to
cope
with
future
risks
and
opportunities
We
remain
focussed
on
our
strategy
and
near
‐
term
goals
18
Q&A
19
20
Non
‐
GAAP
financial
information
•
Group
results
are
reported
under
NZ
IFRS.
This
presentation
includes
non
‐
GAAP
financial
measures
which
are
not
prepared
in
accordance
with
NZ
IFRS,
being:
•
EBITDA:
Earnings
before
interest,
tax,
depreciation
and
amortisation
•
Segmental
EBIT:
Earnings
before
interest
and
tax
(EBIT)
for
either
the
New
Zealand
or
Australia
segment
of
the
Group
•
We
believe
that
these
non
‐
GAAP
financial
measures
provide
useful
information
to
readers
to
assist
in
the
understanding
of
our
financial
performance,
financial
position
or
returns,
but
that
they
should
not
be
viewed
in
isolation,
nor
considered
as
a
substitute
for
measures
reported
in
accordance
with
NZIFRS
•
Non
‐
GAAP
financial
measures
may
not
be
comparable
to
similarly
titled
amounts
reported
by
other
companies
Appendix:
Reconciliation
of
non
‐
GAAP
to
GAAP
profit
measures
Full
year
to
31
March
FY21
FY20
($M)
($M)
Profit
for
the
period
before
significant
items
7.9
9.9
Add:
Tax
adjustments
relating
to
prior
periods
‐
0.9
Less:
NSW
restructure
costs
‐
(3.2)
Less:
Impairment
of
intangible
assets
‐
(86.5)
Add:
Gain
on
disposal
of
vehicles
under
sale
&
leaseback
agreement
0.7
‐
Profit
for
the
period
(GAAP)
8.5
(78.9)
Add:
taxation
expense
3.7
2.5
Add:
net
finance
expense
6.7
7.0
Earnings
before
interest
and
tax
(EBIT)
(GAAP)
18.9
(69.3)
Add:
depreciation
&
amortisation
20.4
21.7
EBITDA
39.4
(47.7)
EBIT
(GAAP)
18.9
(69.3)
Add:
NSW
restructure
costs
‐
4.6
Add:
Impairment
of
intangible
assets
‐
86.5
Less:
Gain
on
disposal
of
vehicles
under
sale
&
leaseback
agreement
(1.0)
‐
EBIT
before
significant
items
17.9
21.8
EBITDA
39.4
(47.7)
Add:
NSW
restructure
costs
‐
4.6
Add:
Impairment
of
intangible
assets
‐
86.5
Less:
Gain
on
disposal
of
vehicles
under
sale
&
leaseback
agreement
(1.0)
‐
EBITDA
before
significant
items
38.4
43.4
21
Appendix:
FY21
half
on
half
performance
1
Before
significant
items.
Segment
results
(NZ$m)
1H19
2H19
1H20
2H20
1H21
2H21
New
Zealand
Commercial
24.2
28.3
22.8
17.3
18.0
18.8
Residential
76.7
66.5
74.9
66.6
59.1
59.0
Retrofit
12.2
9.7
11.8
9.5
12.1
12.8
Total
revenue
1
113.0
104.4
109.6
93.4
89.2
90.6
Gross
profit
%
51.0%
50.4%
52.9%
49.4%
48.7%
47.4%
Segmental
EBIT
17.0
14.1
17.2
8.6
12.8
6.7
AustraliaRevenue
27.5
22.9
27.1
24.8
27.8
24.7
Gross
profit
%
26.9%
16.0%
21.5%
21.3%
26.3%
20.9%
Segmental
EBIT
1
(1.3)
(3.4)
(2.3)
(1.3)
0.4
(1.1)
This
presentation
(“
Presentation
”)
has
been
prepared
by
Metro
Performance
Glass
Limited
(Company
Number
5267882)
(“
Metro
Performance
Glass
”).
Please
do
not
read
this
Presentation
in
isolation
This
presentation
contains
some
forward
‐
looking
statements
about
Metro
Performance
Glass
and
the
environment
in
which
the
company
operates.
Forward
looking
statements
can
generally
be
identified
by
the
use
of
forward
‐
looking
words
such
as
“anticipate”,
“expect”,
“likely”,
“intend”,
“should”,
“could”,
“may”,
“propose”.
“will”,
“believe”,
“forecast”,
“estimate”,
“outlook”,
“target”,
“guidance”
and
other
similar
expressions.
Forward
looking
statements,
opinions
and
estimates
provided
in
this
presentation
are
inherently
uncertain
and
are
based
on
assumptions
and
estimates
which
are
subject to certain
risks,
uncertainties
and
change
without
notice.
Because
these
statements
are
forward
looking,
Metro
Performance
Glass’
actual
results
could
differ materially.
Any
past
performance
information
in
this
presentation
should
not
be
relied
upon
as
(and
is
not)
an
indication
of
future
performance.
Media
releases,
management
commentary
and
investor
presentations
are
all
available
on
the
company’s
website.
Please
read
this presentation
in
the
wider
context
of
material
previously
published
by
Metro
Performance
Glass.
There
is
no
offer
or
investment
advice
in
this
Presentation
This
presentation
is
not
an
offer
of
securities,
or
a
proposal
or
invitation
to
make
any
such
offer.
It
is
not
investment
advice or
a
securities
recommendation
and
does
not
consider
any
person’s
individual
circumstances
or
objectives.
Every
investor
should
make
an
independent
assessment
of
Metro
Performance
Glass
based
on
independent
expert
financial
advice.
All
information
in
this
presentation
is
current
at
the
date
of
this
presentation,
and
all
currency
amounts
are
in
NZ
dollars, unless
otherwise
stated.
Metro
Performance
Glass
is
under
no
obligation
to,
and
does
not
undertake
to,
update
the
information
in
this
Presentation,
including
any
assumptions.
Disclaimer
To
the
maximum
extent
permitted
by
law,
Metro
Performance
Glass
and
its
affiliates
and
related
bodies
corporate,
officers,
employees,
agents
and
advisors
make
no
representation
or
warranty
(express
or
implied)
as
to
the
currency,
accuracy,
reliability
or
completeness
of
the
information
in
this
presentation
and
disclaim
all
liability
for
the
information
(whether
in
tort
(including
negligence)
or
otherwise)
to
you
or
any
other
person
in
relation
to
this
presentation,
including
any
error
in
it.
Disclaimer
22
Metro
Performance
Glass
Limited
5
Lady
Fisher
Place,
East
Tamaki,
Auckland
2013
Ph:
+
64
9
927
3000
www.metroglass.co.nz/
Simon
Mander
–Chief
Executive
Officer
Simon.Mander@metroglass.co.nz
(+64)
029
636
2661
Brent
Mealings
–Chief
Financial
Officer
Brent.Mealings@metroglass.co.nz
(+64)
027
551
6751
Liam
Hunt
–Investor
Relations
Liam.hunt@metroglass.co.nz
(+64)
022
010
4377
Contact
information
23
---
Chair’s Review2
Chief Executive Officer’s Review4
Australian Glass Group12
Our strategy at a glance14
Board of Directors 16
Senior Leadership Team18
Financial Statements21
Notes to the Financial Statements27
Independent Auditor’s Report61
Corporate Governance68
Remuneration Report78
Statutory Information82
Company Directory88
Contents
The Metroglass Group displayed
resilience throughout FY21,
supported by the strength
and dedication of its people.
Metroglass delivered a solid result in the
competitive New Zealand market, while
COVID-19 shutdown impacts overshadowed
underlying performance.
The Australian business’ turnaround progressed
well with stable operational performance and
significantly improved financial results.
Metroglass significantly reduced its debt in FY21,
through strong operating cash flows and targeted
capital expenditure. Dividends are now anticipated
alongside the FY22 interim results.
This report is dated 21 May 2021 and is signed on behalf of the
board of Metro Performance Glass Limited by Peter Griffiths,
Chair, and Graham Stuart, Director.
Peter Griffiths
Chair
Graham Stuart
Director
In a significantly disrupted and uncertain year,
Metro Performance Glass (Metroglass) has
delivered a solid set of financial results. This was
achieved through the resilience of our people,
staying connected with our customers and
remaining focused on our commitment to service
performance. During this challenging time, we have
retained our market-leading position in
New Zealand and made significant progress
on the business turnaround in Australia.
Chair’s Review
Peter Griffiths
CHAIR
We began the financial year
under COVID-19 Alert Level 4,
which saw our New Zealand
operations completely closed
until the transition to Alert
Level 3 on 28 April. Our
Australian operations also
faced COVID-19 restrictions,
which, while less severe than in
New Zealand, were in place for
considerably longer. These
most impacted our Victoria
operation, particularly in the
second half of the year.
The whole team responded to
the evolving situation quickly,
focusing on the safety and
wellbeing of our people and our
customers, preserving our cash
and ensuring sufficient balance
sheet liquidity.
I would like to particularly note
some of the actions taken
during the first few months of
the pandemic, in addition to
establishing a very effective
set of COVID-19 protocols that
enabled us to work safely when
Alert Levels permitted. From
the outset we elected to
continue paying all our staff
their normal base wages and
salaries throughout the
shutdown; we received the
New Zealand Government’s
wage subsidy for the first
shutdown period. We ceased all
non-essential spend;
renegotiated payment terms
with our critical suppliers;
agreed rent relief with our
landlords; and engaged with
our banking syndicate on
covenant relief.
Given the challenges of the
year associated with COVID-19
and international supply chain
disruptions, I believe
Metroglass New Zealand
delivered a pleasingly solid
result, with strong growth in
the Retrofit and other
segments helping to offset
market share competition in
the Residential segment. After
a slower-than-typical start-up
following the New Year period
in January and February, we
have been pleased to see
sustained momentum return to
the market in March and flow
into the first weeks of the new
financial year.
Australian Glass Group (AGG)
has continued to strengthen
its value proposition and
delivered a significantly
improved result this year. After
achieving a positive EBIT
1
result
in the first half, AGG’s
operations and profitability
were negatively impacted late
in the financial year by further
COVID-19 restrictions and a
severe weather event. This
resulted in us closing the
period with a modest loss.
The growing use of double
glazing in south-east Australia,
supported by upcoming
National Construction Code
changes, continues to underpin
our revenue growth and future
strategy. In FY21, AGG grew its
double-glazing sales by 9%.
GROUP REVENUE
$232.3m
-9%
GROUP EBIT
$17.9m
2
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
We have had a clear focus on
reducing debt over the past
three years, during which time
group net debt has fallen by
close to 50%. During the year
to 31 March 2021, net debt was
reduced by $18.9 million to
$48.0 million. This was achieved
through delivering strong
operating cash flows, including
effective inventory and debtor
management, and the sale and
leaseback of approximately
two-thirds of the New Zealand
vehicle fleet.
The combination of a stronger
balance sheet, increased
confidence in the sustainability
of the group’s market position
and future financial
performance has enabled the
board to reassess its capital
management priorities.
The board has reordered these
priorities as follows:
1. Capital expenditure to
maintain operational
capability, improve efficiency
and create increased
production capacity within
the existing manufacturing
footprint
2. Maintaining group leverage
within a target range of 1.0x
to 2.0x net debt to EBITDA
3. Re-establishment of a
conservative and
sustainable dividend
4. Prioritising the use of
remaining excess cash
flows on continued debt
reduction and achieving a
group leverage ratio of
closer to 1.0x.
Despite the disruptions from
COVID-19, the success of
Metroglass’ debt reduction
means that the group is
expecting to be below its
communicated target of a net
1. Earnings before interest, tax and significant items
2. EBITDA, or earnings before interest, tax, depreciation and amortisation, is calculated on a pre-IFRS-16 basis
debt to EBITDA ratio
2
of 1.5x
in the first half of FY22.
It is the board’s current
intention to resume dividend
payments alongside the
company’s FY22 interim results.
The company expects to pay
fully imputed dividends of
between 50% and 70% of net
profit after tax before
significant items. As is usual
when declaring a dividend, the
board will consider a range of
factors, including group financial
performance, one-off or
non-recurring events, prevailing
and anticipated business and
economic conditions.
Having come through the
disruptions of FY21, our current
focus continues to be on
ensuring that the company is a
successful glass processor that
delivers value to its
stakeholders. In service of this
our key near-term goals remain:
• To defend our leadership
position in an increasingly
competitive New Zealand
market
• To grow and improve the
profitability of our
Australian business
• To ensure our balance sheet
is strong and robust to
cope with future risks
and opportunities.
In this report, Metroglass is
also taking a first step forward
in meeting its external
reporting of environmental,
social and governance (ESG)
requirements. As part of the
company’s ESG journey, we
engaged with a wide range of
our stakeholders to better
understand the issues of most
importance to them and then
assessed the impact of those
issues on the company. The
initial findings of this work are
presented in the materiality
matrix on page 74, which will
underpin the prioritisation of
initiatives the group will
undertake in the future.
The threat of COVID-19 will be
with us for some time, and we
are likely to see ongoing
disruption both locally and
globally. We continue to
monitor events and plan for
scenarios that enable us to
respond effectively. It is the
board’s current view that
positive market conditions will
continue for some time in both
countries and Metroglass will
seek to maintain its position in
New Zealand and grow its
business in Australia.
I would like to conclude by
taking the opportunity, on
behalf of the board, to thank
our Metroglass employees,
customers, suppliers and
shareholders for their
continued commitment and
support through an incredibly
challenging year.
PETER GRIFFITHS
Chair
We have had a
clear focus on
reducing debt
over the past
three years,
during which time
group net debt
has fallen by
close to 50%
PETER GRIFFITHS, CHAIR
NET DEBT
$48.0m
REDUCED BY -28%
3
CHAIR’S REVIEW
This year will be remembered as an extraordinary
year, and one I’ve been proud of for the manner
in which Metroglass demonstrated its resilience
and leadership as it navigated a highly uncertain
and dynamic environment. We were resolute in
our ‘people first’ approach, shaping a united team
able to adapt at pace to changes in operating
restrictions and maintain service to our customers.
Chief Executive
Officer’s Review
The group achieved a solid set
of results this year, despite
operating in increasingly
competitive markets and facing
regular externally-driven
disruptions which impacted on
our ability to build sustained
momentum.
As I detailed in our Interim
Report, Metroglass started the
first four weeks of FY21 in an
Alert Level 4 shutdown in
New Zealand and operating
under various levels of
restrictions in Australia. Despite
the significant uncertainty and
remote working challenges, our
people remained hard at work
and stayed connected with our
customers throughout this
period. We stood by our teams
by committing early to pay all
our staff their normal base
wages and salaries throughout
the shutdown period and also
promoted a series of wellbeing-
focused initiatives.
Simultaneously, we executed
measures to preserve the cash
position of the business, cancel
or defer any non-essential
capital and operating spend,
regularly engaged with our
stakeholders and received the
first round of the New Zealand
Government wage subsidy.
In Australia, AGG made clear
progress on its turnaround
programme and delivered
significantly improved financial
results. The business was able
to operate in a relatively
normal way for most of the
year, but uncertainty and
prolonged COVID-19
restrictions impacted on
momentum. These impacts
were felt in Victoria in
particular, where some were
unable to attend work in
person for extended periods
and those who could, had to
wear facemasks for the
majority of the year. AGG was
on track to achieve a modest
profit for the year after a
positive EBIT
1
result in the first
half, however in February 2021
AGG’s Melbourne operations
had to close for multiple days
in response to a local COVID-19
outbreak and snap lockdown,
which resulted in at least two
weeks of significant disruption
across the wider construction
sector. Additionally, in March
2021, New South Wales faced
severe flooding which impacted
AGG’s operations and limited
access to construction sites.
Simon Mander
CEO
4
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
People priorities
The safety, wellbeing and
engagement of our people is a
top priority for Metroglass. In
the first half of the year, we
worked hard to ensure that our
teams had regular check-ins
and established relevant
COVID-19 procedures to keep
them safe while at work.
We are partway through
implementing a multi-year
safety and wellbeing strategy
which saw the launch of several
initiatives this year. This
included a new safety
management system, improved
contractor management
procedures, the installation of
numerous additional lifting
cranes, and enhanced
monitoring across the full
spectrum of actual and
near-miss safety incidents.
We are continuing to invest in
developing the long-term
capabilities of our people. In
FY21, we recognised our first
cohort of staff who completed
our award-winning Brighter
Minds programme which aims
to provide the knowledge and
skills our emerging leaders
need to be successful in their
roles. In our growing
apprenticeship scheme, we now
have over 80 highly engaged
individuals developing the skills
to work with high-performance
glass processing and on-
site glazing.
Throughout the year, our
operations teams have led and
delivered several continuous
improvement initiatives
targeting safety, service
performance and quality, all
embodying a culture of
ownership and accountability.
We have also focused on
increasing our capabilities in
continuous improvement with
several inductees to the Lean
Practitioner programme. The
commitment of our teams in
actioning these initiatives has
supported the stability of our
service performance and
quality to customers this year,
despite the COVID-19
disruptions. Metroglass’ key
service performance measures
remained consistent, with the
rate of external reworks and
delivery-on-time-in-full (DIFOT)
continuing in line with last year.
5
Customer feedback
Financial highlights
This year has provided further
proof of the importance of our
strong customer relationships,
and our continual focus on
improving our service model
and customer experience. The
results from our six-monthly
customer survey question: “On
a scale of 1 to 10, how likely are
Group revenue of $232.3 million
was 9% lower than FY20, and
group EBIT was 18% lower at
$17.9 million. Reported net
profit after tax (NPAT) for FY21
was $8.5 million, compared to a
loss of $78.9 million in FY20
(impacted by a $86.5 million
impairment of goodwill).
you to recommend Metroglass
to a friend or colleague?”
reinforce that we are on the
right track, with Metroglass
receiving its strongest rating
so far.
We treat the feedback we
receive from these surveys as
being critically important. While
Group revenue from June 2020
to March 2021 (excluding the
New Zealand shutdown month
of April 2020 and ramp-up of
May 2020) was 2% below the
same 10-month period in FY20.
This decline in revenue was
predominantly a result of the
extended New Year shutdown
period in New Zealand in
January 2021.
7. 3
7. 6
7.7
8.08.0
7. 3
8.1
7. 9
New Zealand
AGG
November 2020June 2020November 2019June 2019
our overall ratings remain
strong and we received praise
on the strength of our people,
customer service and project
management, we also recognise
the ongoing work required to
continue leading the market in
operational areas like product
quality and deliveries/lead times.
Our strong operating cash
flows, including effective
working capital management,
and the sale and leaseback of
approximately two-thirds of
the New Zealand vehicle fleet
have allowed us to reduce net
debt by $18.9 million since
March 2020.
Despite the shutdown in New Zealand early in the year, the group delivered
a solid result in the 12 months to 31 March 2021 (FY21) reflecting improved
profitability in Australia and the success in New Zealand to target the
Retrofit and Commercial Glazing segments to compensate for increased
competition in the Residential market.
6
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Summary of results for the 12 months ended 31 March 2021 (FY21)
$MNEW ZEALANDAUSTRALIAGROUP
FY21FY20FY21FY20FY21FY20
Revenue179.8 203.0 52.5 51.9 232.3254.9
Segmental EBIT before significant items
3,4
19.4 26.4 (0.7)(3.6)
Group costs(0.7)(1.0)
EBIT before significant items 17.921.8
EBIT 18.9 (69.3)
Profit for the period before significant items 7.99.9
Profit for the period 8.5 (78.9)
3. All non-Generally Accepted Accounting Principles (GAAP) financial measures are defined and reconciled to a GAAP measure on page 20 of this report.
4. Earnings before interest, tax and significant items (FY21: $1.0 million gain on sale of vehicles, FY20: $86.5 million impairment of NZ goodwill, $4.6m of NSW restructure costs and $0.9
million of positive tax adjustments relating to prior periods).
141.6
118.2
40.1
36.8
24.9
51.9
232.3
254.9
-11.5% (NZ)
-16.5%
21.3
52.5
FY20
-8.9%
FY21
+16.4%-8.4%+1.2%
Total group revenueAustralian Glass GroupRetrofit NZCommercial Glazing NZResidential NZ
NZ revenue for the 10 months
excluding April and May Alert Levels 4 and 3: -2.1%
Group revenue for the 10 months
excluding April and May Alert
Levels 4 and 3: -1.2%
Group revenue by segment ($m)
$232.3 million, -$22.6 million
Group EBIT ($m)
$17.9 million, -$3.8 million
Note: EBIT is before significant items
FY20 EBIT (restated)
Change in April and May
NZ EBIT – COVID-19
Alert Level 4
and 3 lockdowns
NZ Government wage
subsidy – COVID-19
NZ revenue decline
(June 20 – March 21)
NZ gross profit
% decline
(June 20 – March 21)
21.8
10.5
6.1
1.8
3.0
0.8
1.3
1.4
1.2
0.3
0.3
17.9
Distribution and glazing
(June 20 – March 21)
Administration, selling
and marketing
(June 20 – March 21)
Gross profit %
improvements
Administration
expenses
Distribution
and other
Other group costs
FY21 EBIT
New ZealandAustralia (NZ$)
7
ChIEF ExECuTIvE OFFICER’S REvIEW
New Zealand Review –
demonstrated resilience
through unprecedented
market disruptions
In New Zealand, Metroglass
delivered solid underlying
performance; however,
primarily as a result of the
COVID-19 Alert Level 4
lockdown period, revenue
declined $23.3 million or 11% to
$179.8 million. Within this result,
strong growth in our Retrofit
segment helped to partially
offset the impact of
heightened competition in the
Residential segment.
The business’ operations were
regularly impacted by
fluctuating COVID-19
restrictions and international
supply chain disruptions this
year, which impacted on
momentum across the industry.
In consultation with the
industry and our customers, we
also elected to extend our
normal New Year shutdown
period this year to support the
wellbeing of our people after a
very challenging 2020. This
decision contributed to a
slower-than-normal January
and February period; however,
we have been pleased to see a
pick-up in demand in March and
into the first few weeks of the
new financial year.
Our direct-to-the-consumer
Retrofit double-glazing
business delivered strong
growth this year, despite the
lockdown period, with revenue
of $24.9 million up 16%. Enquiry
levels (as measured by the
number of leads received) from
consumers looking to invest in
home improvements were
significantly above the prior
year, alongside increased
conversion into actual work.
Our average contract size
increased by 9% and our
forward book has consistently
grown over the course of FY21,
ending the year at an all-time
record level which will support
sustained activity in FY22.
The Retrofit business provides
us with great insight into the
attractiveness and benefits of
our high-performance glass
product offering. During FY21,
we saw that when consumers
were directly informed of the
benefits of particular glass
products, more than 80%
chose to invest in high-
performance, low-emissivity
glass when installing their new
double glazing. This uptake is
well in excess of what we see
from developers and builders
of new housing, which presents
ongoing opportunity going
forward.
Our Residential segment
revenue declined $23.4 million
(or 17%), with approximately
55% of this fall attributable to
the lost sales in April 2020 and
ramp-up in May. While this
revenue decrease was
disappointing, the business
responded well against the
entry of a significant new glass
processing competitor in the
North Island from the start of
the financial year. These
changing market dynamics
have played out largely as we
expected and should settle
over the remainder of FY22.
Metroglass is focused on
continuing to defend its
market-leading position in this
segment while also actively
targeting regions and
sub-segments where we see
room for growth.
Revenue in the Commercial
Glazing segment declined 8%
to $36.8 million this year,
primarily as a result of the April
shutdown period. This business
has now completed its
transition towards the
small-to-medium-sized
projects and complexity levels
that we are well placed to
execute successfully. EBIT in
this segment grew this year
despite the reduction in
revenue, as management
focused on maintaining strong
relationships and service,
executing projects well and
managing costs efficiently. The
forward book of committed
glazing work ended the year
slightly higher than last year at
$25.5 million.
New Zealand’s gross profit
margin declined from 51.4% to
48.0% in FY21, after carrying
costs through the April
shutdown and May ramp-up
period and facing competitive
price pressure in the
Residential segment and
additional incurred costs due
to the well-publicised
disruptions to global
supply chains.
RETROFIT REVENUE
$24.9m
+16%
8
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
We began seeing the financial
impacts of supply chain
disruptions including higher
glass and international freight
costs in the final quarter of
FY21, which we expect to
continue until at least the end
of 2021. These dynamics are
having a growing impact on the
supply of glass and other
building products imported into
New Zealand with lead times
and costs continuing to
increase. We are managing daily
disruptions and challenges
around shipping schedules.
Along with ships being delayed
from entering ports due to
backlogs, they are also electing
to offload containers at
alternative destinations. As a
result, we are having to
transport many of these
containers within New Zealand
using our own logistical
network. We have regularly
communicated with our
customers on these supply
chain issues and have built up
increased stock levels in the
short term to ensure that none
of our customers face
shortages across our core
product range.
This decline in revenue and
gross profit was partially
offset by savings in both
distribution and glazing costs,
and administration, selling and
marketing costs. However,
New Zealand’s EBIT before
significant items of $19.4
million was 27% lower than
last year.
With the unprecedented
operational disruptions and
competitive landscape changes
faced in FY21 now largely
behind us, the business is firmly
focused on the future.
Metroglass has a market-
leading product and service
offering and deep customer
relationships that will continue
to remain at the centre of our
value proposition.
Australia Review –
turnaround programme
results in significantly
improved profitability
Australian Glass Group (AGG)
successfully navigated a
challenging year, delivering a
significant improvement in
financial performance despite
repeated and prolonged
COVID-19-related restrictions
and disruptions. unlike our
New Zealand operations, our
Australian plants were able to
remain almost fully operational
this year, while operating under
strict safety protocols.
AGG’s revenue increased by 1%
in New Zealand dollar terms to
$52.5 million in FY21 with
strong performance from all
states in rebuilding the revenue
to offset the exit of non-
double-glazing product sales in
New South Wales. This success
was supported by a 9%
increase in double-glazing
sales in FY21.
At an EBIT level, AGG was on
track to deliver a break-even
or better result for the
majority of the financial year,
however two external factors
had negative impacts late in
the year. The first was the
highly disruptive COVID-19 snap
lockdown imposed in Victoria in
mid-February and the second
was the severe flooding in New
South Wales in March. AGG
delivered an EBIT loss of $(0.7)
million in FY21, which, while
disappointing, was a significant
improvement from the loss of
$(3.6) million in FY20.
AGG is now a leading supplier
of high-performance double-
glazing in the south-east of
Australia, supplying Australia’s
leading range of high-
performance, soft-coat,
low-emissivity (LowE)
performance glass. The
business has maintained a
similar level of revenue over the
last three years but
significantly improved its EBIT
results, despite market
declines in residential
construction activity, the
restructuring of AGG’s New
South Wales operations and
adapting to the impacts of
COVID-19.
The south-east Australian
market remains a long-term
growth opportunity for AGG,
with significantly lower rates of
double-glazing adoption
compared with New Zealand.
AGG is now very well positioned
in the market, supported by
stable operational and financial
performance. The business will
benefit from a set of supportive
changes in the National Building
Code anticipated to come into
effect in calendar years 2022
and 2023. These code changes
will require new residential
buildings to be constructed to
an increased energy efficiency
rating, which can be readily
achieved with double glazing.
This requirement was
introduced for new commercial
buildings in 2019 and the
subsequent increased usage
and interest in double glazing
has been significant.
The board and I wish to thank
our Australian team, who has
delivered well against its
turnaround plan this year,
despite COVID-19 and
several external factors
impacting results.
9
CHIEF ExECuTIVE OFFICER’S REVIEW
Balance Sheet and
Cash Flows
In the 12 months to 31 March
2021, group net debt was
reduced by $18.9 million to
$48.0 million. This was achieved
through strong operating cash
flows, including effective
inventory and debtor
management, and the sale and
leaseback of approximately
two-thirds of the New Zealand
vehicle fleet.
Total working capital for the
group declined by $4.4 million
to $24.6 million as a result of
sound management of
inventory and debtors. In the
short term, the New Zealand
business has been
progressively increasing its
glass orders (which take many
weeks to arrive for us to take
ownership) to protect against
supply chain disruptions.
In October 2020, Metroglass
announced the refinancing of
its syndicated banking facilities,
extending the expiry to
October 2023. This reduced the
total facility size from $120
million to $85 million, inclusive
of a $10 million standby facility,
which will expire in October
2021. Metroglass has continued
to prudently manage costs and
capital expenditure across the
business in line with its focus
on debt reduction.
Our leverage ratio
1
decreased
from 2.0x to 1.7x year on year.
The FY21 ratio was impacted by
the April 2020 shutdown period
and pleasingly, we expect to
better our communicated
target of 1.5x in the first half
of FY22.
1 Net debt to EBITDA, measured on a pre-IFRS-16 basis.
10
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Market Conditions
and Outlook
As we enter FY22, we are
increasingly confident that
activity levels across both
New Zealand and Australia will
be at least sustained at
current levels for the rest
of the 2021 calendar year.
Residential dwelling consents in
New Zealand have remained
elevated, despite the pandemic,
supporting a healthy pipeline of
work. However, we believe the
wider construction industry
remains near to full capacity,
which may limit growth in the
near term. In south-east
Australia, the number of
residential approvals has
significantly improved through
FY21 compared with the
year prior.
Metroglass operates in a highly
competitive market and has
made solid progress to defend
its market leadership position
and secure opportunities within
a range of segments this year.
The Residential segment in
New Zealand will continue to
be competitive and dynamic
through FY22, with Metroglass
focused on delivering its
strong service proposition
to customers.
The entire building products
industry continues to
experience significant
international shipping
disruptions and delays as
key port congestion and
sea-freight demand is
heightened. We expect the
increase in shipping-related
costs to continue through
to the end of 2021.
While New Zealand and
Australia continue to have
limited effects of COVID-19,
we remain alert to potential
changes in our operating
conditions. Our teams are
accustomed to this
environment and can mobilise
our COVID-19 response
protocols rapidly. However,
lockdowns like those seen
We are
continuing
to invest in
developing
the long-term
capabilities of
our people.
SIMON MANDER, CEO
in Auckland and Victoria in
recent weeks are very
disruptive to the business,
our customers and the broader
supply chain in the short term.
We will continue to take
a prudent approach to
managing costs with a
focus on essential capital
expenditure but will also invest
for growth where appropriate.
In the coming year, we will
work hard to support the
success of our customers by
providing excellent service and
maintaining our market-leading
position in New Zealand and
growing position in Australia.
SIMON MANDER
Chief Executive Officer
11
CHIEF ExECuTIVE OFFICER’S REVIEW
Australian Glass Group
Stable and positioned for growth
One aspect that has been
really pleasing is the positive
feedback we are receiving from
our customers. In the past two
years we have completed four
customer surveys with
continuing good feedback on
our service and people, and
growing positiveness towards
our product range, quality and
delivery performance.
Of course, this is built off a
much-improved operational
performance from a more
skilled workforce, better
equipment reliability and a
growing passion for quality.
Our people have been critical
to the success of AGG’s
turnaround and maintaining
operations throughout a
disruptive year. Safety and
wellbeing remains a
fundamental priority for AGG,
and this year we have focused
on implementing best-practice
safety and logistics practices
in the handling of bulk glass,
made significant improvements
to our physical workspaces,
developed our safety systems
and installed lifting equipment
to reduce manual handling
risks. In addition, we have
continued to invest in
developing a strong team by
implementing skills
development training and
performance management
programmes this year.
One of the key activities to
complete in commencing the
turnaround of AGG in 2018 was
to assemble a refreshed and
effective executive team to
create a stable platform from
which to execute AGG’s
turnaround plans.
Since Metroglass’ acquisition of Australian Glass
Group (AGG) in 2016, the business has undergone
significant change with major capital investment
in equipment, reorientation of its business model
towards high-performance double glazing, and
opening a greenfield glass processing plant in
Tasmania (AGG’s third plant).
AGG’s CEO
Steve Hamer reflects
on AGG’s journey
and its positioning
for the future.
Q
How would you describe
AGG’s multi-year journey
to transform its capacity,
product offering and business
performance?
Over the past 24 months, we
have successfully stabilised the
business, with markedly more
consistent operating
performance. Our key business
metrics have all improved,
including safety, customer
service, operational
performance, and lower staff
turnover. When combined with
the fundamental restructuring
of our New South Wales (NSW)
business in late 2019, this has
significantly improved our
financial performance.
This has allowed us to maintain
revenue and significantly
improve EBIT over the last
three years, despite market
declines in overall residential
construction activity, losing
revenue through the NSW
restructure, and facing
prolonged disruption from
COVID-19.
AGG managed the 2020
COVID-19 impacts well, limiting
disruption for our staff and
customers. The one exception
to this was the snap five-day
lockdown of Victoria announced
in mid-February 2021 which
created widespread disruption
in the construction sector for
some weeks.
HEADQUARTERS
Knoxfield, Melbourne
PROCESSING SITES
• Knoxfield, Melbourne
• Girraween, Sydney
• Hobart, Tasmania
EMPLOYEES
220 employees
(at 31 March 2021)
KEY PRODUCTS
• High-performance (LowE)
double-glazing
• Custom laminates
• Toughened glass for
residential and
commercial projects
220
12
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
performance (insulation and
solar control) glass products.
The next iteration of NCC
changes is expected to be
adopted from September 2022,
which will increase the energy
requirements for new
residential buildings, and will be
likely to necessitate the use of
energy-efficient windows in
colder climates, leading to an
increase in the use of double
glazing.
In anticipation of these NCC
changes, AGG has invested in
its equipment, people capability,
technical resources, and
marketing, to create, market
and produce a leading range of
high-performance glass
brands.
Q
What are your key priorities
for the coming year?
FY22 will be an exciting year for
AGG. Much of our product
range and operational
improvement work has been
completed and general activity
Over the past
24 months, we
have successfully
stabilised the
business, with
markedly more
consistent
operating
performance
and significantly
improved financial
performance.
STEVE HAMER, AGG CEO
The key members of AGG’s management team are:
This management team has
now been in place since June
2018, almost three years, and is
driving the stable progress of
the AGG business which has
seen significant improvements
in operational and financial
performance.
Q
As we stand today, how
well is AGG positioned for
the future?
AGG is now a leading supplier
of high-performance double-
glazed units throughout the
south-east of Australia, and
our team is very positive about
the future.
In 2019, changes to Australia’s
National Construction Code
(NCC) saw the first major
changes in minimum energy
efficiency since the start of
minimum energy ratings in 2012
(focused on the commercial
segment). These changes have
resulted in an increase in
specification and customer
demands for AGG’s high-
AGG CEO – Steve Hamer
Steve is a very experienced senior executive, with a career focused on
the building products and steel markets in Australia and New Zealand.
He is an Electrical Engineer by training and has completed an
Advanced Management Program at Harvard Business School.
AGG CFO – Jason McGrath
Jason has over 20 years’ experience as a senior finance executive with considerable
manufacturing and building products experience in listed public companies. He holds a
Bachelor of Business and is a certified public accountant.
GM South-East Australia – Angus Wilson
Angus brings a strong manufacturing background, with experience across sales, operations,
technical and service disciplines, and for over 10 years as a General Manager in successful
businesses across multiple markets. He holds a Bachelor of Applied Science.
GM Tasmania – Simon Hind
Simon has extensive experience in the construction, glass and glazing industries, mainly in
Sydney and Tasmania. He is a carpenter by trade and has a Bachelor’s degree in Building Science.
AGG Marketing and Business Development – Mike Ward
Mike has more than 10 years’ experience in Australasian glass (including bulk glass). He has
driven AGG’s marketing and specification campaigns utilising his expertise in high-
performance Low-E glass. Mike also sits on several glass-related industry committees. He
has a Master of Business Administration, specialising in Operations and Management.
levels in the residential
construction market are
forecast to strengthen. This
assumes that COVID-19-
related issues reduce and are
well managed.
In the coming year, AGG will
continue to develop and market
its offering to product
specifiers (specifically
architects and energy raters)
to capitalise on the work
already completed to launch
our high-performance
double-glazing range.
AGG now has the foundation in
place to take good advantage
of the improving market
conditions as well as the swing
towards high-performance
windows to continue growing
its market position and
profitability.
13
Our strategy
at a glance
SAFETY
Working safe,
living well
PRODUCT AND
PROCESS QUALITY
Right first time,
every time
OUR
CUSTOMER
At the centre of
everything we do
OUR
PEOPLE
We value,
inspire, train and
develop our team
OWNING
OUR WORK
We take
responsibility and
work as one team
The Metro Way
14
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
OUR OBJECTIVESFY21 progress
Deliver market-leading
customer service to our customers
Quality and service are key differentiators for
our customers and critical to their success
and profitability.
• Metroglass worked hard to strengthen its relationships with key customers in
New Zealand and delivered stable DIFOT in a disruptive year.
• Conducted our fourth group-wide customer survey, with New Zealand achieving
its highest result with 7.9 out of 10
1
.
• Successfully stabilised the Australian business, with markedly more consistent
operating performance and continuing positive feedback from customers on
our service and people.
• AGG is now a leading supplier of high-performance double-glazed units in
south-east Australia.
Develop our
organisational capabilities
Our people are the key to unlock our value
proposition and critical relationships with
customers. To cultivate this, we are investing
in our people, their capabilities and our
support systems.
• Implemented safety initiatives to identify early signs of discomfort and avoid
more serious injuries.
• Launched our Brighter Minds programme supporting emerging leaders to
develop the knowledge and skills to be successful in their roles and to work
towards a New Zealand Certificate in Business (Introduction to Team
Leadership).
• We continue to support, upskill and build capability in our production and
glazing, with more than 80 apprentices enrolled. In FY21, 15 employees
completed their qualification.
• Deployed training and initiatives to support people leaders in improving the
performance and development of their teams.
Uphold our scale strength through
product and channel leadership
Metroglass’ scale and leadership position in
the New Zealand flat-glass market provides
advantages across customer support,
procurement, manufacturing and distribution.
We will continue to operate across multiple
channels in New Zealand, offering varied cycle
exposures and growth opportunities.
AGG will continue to build a strong market
position targeted on providing double-glazing
and high-performance glass in the south-east
Australian market.
Glass is a rapidly evolving product and we are
well placed to continue to provide market-
leading offerings.
• undertook and completed a significant Enterprise Resource Planning (ERP)
system implementation.
• Retrofit, our direct-to-consumer business, strengthened its channel
leadership position with revenue increasing by 16% as consumers spent more
on home renovation.
• Expanded our offering of products available through our online PS1 platform,
where customers can easily access product technical design information when
they need it.
• AGG continued to grow its high-performance double-glazing product offering,
increasing category sales by 9%.
Leverage our scale to
deliver solutions efficiently
A persistent focus on increasing efficiency
and automation and lowering costs is
essential for the long-term sustainability
of our business, and to enable us to compete
successfully against imports and changing
industry dynamics.
• The robustness of the company’s global supply chain faced a significant test this
year. Across both New Zealand and Australia, we successfully managed supply
issues for input products and ongoing shipping disruptions. We leveraged our
scale and network to ensure we continued to meet customer demands and
expectations across our markets.
• Delivered stable operating performance across our glass processing plant
network, supported by our growing culture of continuous improvement. This year
we conducted Lean Practitioner training and executed numerous employee-led
improvement initiatives.
• Our Commercial Glazing business has completed the transition of its operating
structure and forward book of projects towards the execution of small-to-
medium-sized projects, and delivered an improved EBIT result in FY21.
1
2
3
4
1 Question: “On a scale of 1 to 10, how likely are you to recommend Metroglass to a friend or colleague?”
15
Board of Directors
Peter Griffiths
Independent,
Non-Executive Chair
After a career in the energy
industry Peter has become
a professional director. His
last executive position was as
Managing Director of BP Oil
New Zealand, retiring in 2009.
He has previously served on
a number of boards including
Z Energy, Marsden Maritime
Holdings, The New Zealand
Refining Company, and New
Zealand Oil & Gas. He is also
Chair of the New Zealand
Business and Parliament Trust
and has private interests
in general aviation. Peter
holds a Bachelor of Science
(Honours) degree from Victoria
university of Wellington.
Angela Bull
Independent, Non-Executive Director,
Chair of the People and Culture Committee
Angela is currently the
Chief Executive Officer of
Tramco Group Limited, a
large New Zealand property
investment company, a
director of the Real Estate
Institute of New Zealand and
realestate.co.nz, and a director
of Callaghan Innovation
Research Limited. She joined
Tramco Group in February
2016. Prior to leading Tramco,
Angela held a number of senior
positions over a 10-year period
with Foodstuffs, most recently
being General Manager
Property Development for
Foodstuffs North Island. This
was preceded by a legal career,
including roles with Chapman
Tripp, the Crown Law Office and
Simpson Grierson. She holds
Bachelor of Arts and Bachelor
of Laws degrees from the
university of Auckland.
Mark
Eglinton
Peter
Griffiths
Angela
Bull
Russell
Chenu
Graham
Stuart
Rhys
Jones
16
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Graham Stuart
Independent, Non-Executive
Director, Chair of the Audit and
Risk Committee
Graham has over 30 years’
experience in senior executive
and governance roles in New
Zealand and internationally.
He was previously the Chief
Executive Officer of Sealord
Group from 2007 to 2014
and prior to that was Chief
Financial Officer and Director
of Strategy with Fonterra
Co-operative Group from 2001
to 2007. Graham is the chair of
EROAD Limited, an independent
director and chair of the audit
committee of Tower Limited,
and independent director and
Chair of Northwest Healthcare
Property Management
Limited. He is a Fellow of
Chartered Accountants
Australia & New Zealand.
Graham has a Master of
Science from Massachusetts
Institute of Technology and a
Bachelor of Commerce from
the university of Otago.
Rhys Jones
Independent, Non-Executive
Director, Member of the People
and Culture Committee
Rhys has had a 30-year career
working in the Australasian
building material and packaging
industries. He is currently
the Executive Director and
Chairman of the Executive
Board of Vulcan Steel Limited,
a large privately owned trans-
Tasman steel distributor with
over 30 business units across
Australasia. Rhys is also a
director of Carbine Aginvest
Corporation Limited (formerly
Tru-Test Corporation Limited)
and Ridley Corporation Limited.
Prior to joining Vulcan Steel
in 2006, he held senior roles
in particular with Carter
Holt Harvey Ltd and Fletcher
Challenge, including as Chief
Operating Officer of the Pulp,
Paper and Packaging business
of Carter Holt Harvey. Rhys
holds a Master of Business
Studies degree from Massey
university and a Bachelor
of Science from Victoria
university of Wellington.
Russell Chenu
Independent, Non-Executive
Director, Member of the Audit
and Risk Committee
Russell has significant
experience in the corporate
sector with more than 23 years
in senior management roles.
He has considerable expertise
in senior finance-related
roles, including with building
products companies. Russell
is currently an independent
director and the Chairman of
the Audit and Risk Committee
of ASx-listed businesses CIMIC
Group Limited and Reliance
Worldwide Corporation
Limited. He previously served
on the board of James Hardie
Industries plc. Prior to this
he had a 23-year career with
James Hardie Industries plc,
holding various management
and executive positions in a
number of countries, including
most recently serving as
Group Chief Financial Officer
from 2004 to 2013. Russell
also served as Chief Financial
Officer for several ASx-listed
companies (TAB, Delta Gold,
Australian National Industries
and Pancontinental Mining),
and previously was Treasurer
of Pioneer International. He
has a Bachelor of Commerce
degree from the university
of Melbourne, a Master of
Business Administration
from Macquarie Graduate
School of Management and
is a Member of the Society
of Certified Practising
Accountants (Australia).
Mark Eglinton
Independent, Non-Executive
Director, Member of the People
and Culture Committee
Mark is currently the Group
Chief Executive Officer and
a director of NDA Group,
a leading international
engineering and fabrication
business. Prior to this, he was
the Chief Executive Officer
of Tenon Limited (NZx listed
at that time) from 2005 to
2009 and held several senior
positions with Fletcher
Building, including the role of
Managing Director of Fletcher
Aluminium & Plyco Doors
from 1999 to 2001. Mark has
a Bachelor of Commerce
and a Bachelor of Laws from
the university of Otago.
17
Senior Leadership Team
Simon Mander
Chief Executive Officer
Simon has broad leadership
expertise at senior levels
across industries ranging from
ag-tech, building products,
to flexible and fibre-based
packaging. During Simon’s
career, he has specialised in
performance improvement,
as well as in strategy
development and execution.
He has worked internationally
in a number of industries and
has recent experience in the
New Zealand and Australian
building products market.
Simon joined Metroglass from
Tru-Test Corporation Limited,
a world-leading New Zealand-
based ag-tech company where
he was Chief Executive Officer.
Prior roles have been with
well-known companies such as
Top: Barry Paterson, Brent Mealings
Middle: Gareth Hamil, Nick Johnson
Bottom: Simon Mander, Amandeep Kaur, Andrew Paterson,
Robyn Gibbard, Dayna Roberts, Nick Hardy-Jones
Fletcher Building, DS Smith,
Carter Holt Harvey, Partners
in Performance, Lion Nathan
and McKinsey & Company.
He was also a director of
NZx-listed Wellington Drive
Technologies for nine years.
Simon has a trade background
in aircraft engineering and
holds a Bachelor of Engineering
(Mech) degree from the
university of Auckland. In
addition, he represented
New Zealand in yachting on a
number of occasions including
in the International 470 class
at the 1988 Olympic Games.
Brent Mealings
Chief Financial Officer
Brent was appointed as Chief
Financial Officer in January
2020. He joined Metroglass
following a 17-year career
with Fonterra Co-operative
Group where he held various
leadership positions, most
recently Director Commercial
Global Operations. Prior to
Fonterra, Brent worked within
New Zealand and internationally
in other industries including
brewing, management
consulting, electricity
generation and gold-mining.
Brent is a Chartered
Accountant and holds
a Master of Business
Administration from the
university of Canterbury.
Robyn Gibbard
General Manager
upper North Island
Robyn leads the upper North
Island region for Metroglass
and has worked in the business
for more than 20 years. She
has previously led Metroglass’
sales force nationally and
held many customer-facing
roles across commercial
glazing, branch management
and sales management.
Gareth Hamill
General Manager
Lower North Island
Gareth leads the Lower
North Island region. Joining
Metroglass in 2002, he
brings significant experience
in commercial glazing. He
is a Director of the Glass
and Glazing Institute of
New Zealand, and also a
Member of the New Zealand
Institute of Building (NZIOB)
and of the Window &
Glass Association of New
Zealand (WGANZ) Glass
Technical Committee.
Gareth holds a Bachelor
of Building Science
degree from Victoria
university of Wellington.
18
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
high-performing safety culture.
Before joining the company,
Amandeep held senior health
and safety roles at Harrison
Grierson, Sinclair Knight
Merz, and Compass Group,
after starting her career in
quality assurance with Nestlé,
Frucor and Real Foods.
She holds a Master in Food
Science Technology degree
as well as a Graduate
Diploma in Occupational
Health and Safety.
Dayna Roberts
Human Resources Director
Dayna leads Metroglass’ Human
Resources team nationally. She
has over 10 years’ experience
in HR, talent and recruitment,
spending eight years at
Fletcher Building before
commencing with Metroglass.
Dayna holds a Bachelor
of Business degree in
Marketing and Management
and an NZ Diploma in
Business from the Auckland
university of Technology.
Andrew Paterson
General Manager Strategy and
Planning
Andrew supports Metroglass’
Board of Directors, leads
the company’s engagement
with the capital markets,
and drives a number of
corporate initiatives. These
initiatives have included
strategy development
and communication,
business acquisitions,
and the establishment of
employee share schemes.
Prior to joining Metroglass
in 2015, Andrew spent close
to a decade in investment
banking and corporate
advisory in New Zealand
and the united Kingdom,
with organisations including
Goldman Sachs and Deloitte.
Andrew holds a Master
of Business (Finance), a
Bachelor of Commerce and
a Bachelor of Arts from the
university of Otago. He is also
a Chartered Financial Analyst
and Chartered Secretary.
Nick Johnson
Chief Information Officer
Nick joined Metroglass as
Chief Information Officer
in December 2017.
He has broad experience in
strategic and operational
management, having
held several senior roles
in quality assurance,
manufacturing and IT.
With over 18 years’ experience
in IT professional services
organisations, Nick has worked
closely with a variety of
different industries across
New Zealand, Australia and
the Asia-Pacific region. He
has experience working
in the primary (meat,
dairy, produce, wine and
forestry), manufacturing
(food, pharmaceuticals,
and engineering), supply
chain, FMCG, retail and
utilities industries. He has
also worked with not-
for-profit organisations,
including charities.
Nick has a Bachelor of
Science (Hons) in Chemistry
and is a graduate of the
Royal Society of Chemistry.
Nick Hardy-Jones
General Manager South Island
Nick leads the South Island
region for Metroglass and
has been with the company
since 2016. He previously
spent five years in leadership
roles within Metroglass’ South
Island commercial and glazing
businesses. Prior to working
in the glass industry, Nick held
category, product and sales
management roles within the
commercial and residential
roofing and cladding industries.
Nick holds a Bachelor
of Commerce from the
university of Canterbury.
Barry Paterson
General Manager Commercial
Glazing and Technical
Barry leads Metroglass’
technical team and commercial
glazing business nationally. He
has 15 years of experience
across the New Zealand and
Australian glass industries.
Barry has held a diverse
range of commercial and
management finance roles in
the arable and manufacturing
industries, and was a director
on the board of Westland Milk
Products from 2010 to 2016.
He holds a Bachelor of
Commerce and Management
degree and a Postgraduate
Diploma in Marketing
from Lincoln university.
Amandeep Kaur
Group Health and
Safety Manager
Amandeep leads Group Health
and Safety across both our
New Zealand and Australia
businesses, responsible
for the development and
implementation of Metroglass’
health and safety strategy.
She brings with her a wealth
of experience, with strengths
in creating and implementing a
19
Non-GAAP Financial Information
Metroglass’ standard profit measure prepared under New Zealand Generally Accepted Accounting Practice (GAAP)
is profit for the period, or net profit after tax. Metroglass has used non-GAAP measures which are not prepared
in accordance with New Zealand International Financial Reporting Standards (NZ IFRS) when discussing financial
performance in this document. The directors and management believe that these non-GAAP financial measures provide
useful information to readers to assist in the understanding of the Group’s financial performance, financial position or
returns, and used internally to evaluate the performance of business units and to establish operational goals. These
measures should not be viewed in isolation, nor considered as a substitute for measures reported in accordance with
NZ IFRS. Non-GAAP financial measures may not be comparable to similarly titled amounts reported by other companies.
Definitions of non-GAAP financial measures used in this report:
EBITDA: Earnings before interest, tax, depreciation and amortisation.
EBITDA before significant items: EBITDA less significant items, being: a $1.0 million gain on disposal of vehicles under
sale & leaseback agreement in FY21 and an $86.5 million impairment of New Zealand goodwill (“Impairment of
intangible assets”) in FY20, $4.6 million of redundancies and associated costs relating to the restructure of the
New South Wales operation in FY20 (“NSW restructure costs”).
EBIT before significant items: EBIT less significant items, being: FY21 gain on disposal of vehicles under sale
& leaseback agreement, and FY20 impairment of intangible assets and NSW restructure costs.
Profit for the period before significant items: Profit for the period less significant items, being: FY21 gain
on disposal of vehicles under sale & leaseback agreement, FY20 goodwill impairment, NSW restructure costs,
and an AGG tax refund relating to prior periods.
GAAP TO NON-GAAP RECONCILIATION
Full Year to 31 March
FY21
($M)
FY20
($M)
Profit for the year before significant items7.9 9.9
Add: Tax adjustments relating to prior periods– 0.9
Less: NSW restructure costs– (3.2)
Less: Impairment of intangible assets– (86.5)
Add: Gain on disposal of vehicles under sale & leaseback agreement0.7 –
Profit for the year (GAAP)8.5 (78.9)
Add: taxation expense3.72.5
Add: net finance expense6.7 7.0
Earnings before interest and tax (EBIT)18.9 (69.3)
Add: depreciation & amortisation20.4 21.7
EBITDA39.4 (47.7)
EBIT18.9 (69.3)
Add: NSW restructure costs– 4.6
Add: Impairment of intangible assets– 86.5
Less: Gain on disposal of vehicles under sale & leaseback agreement(1.0)–
EBIT before significant items17.9 21.8
EBITDA39.4 (47.7)
Add: NSW restructure costs– 4.6
Add: Impairment of intangible assets– 86.5
Less: Gain on disposal of vehicles under sale & leaseback agreement(1.0)–
EBITDA before significant items38.4 43.4
20
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Our Results
Consolidated Statement of Comprehensive Income22
Consolidated Statement of Financial Position23
Consolidated Statement of Changes in Equity24
Consolidated Statement of Cash Flows25
Notes to the Consolidated Financial Statements 27
1. Basis Of Preparation27
2. Financial Performance28
3. Working Capital32
4. Long-Term Assets42
5. Debt & Equity49
6. Other54
Contents
NOTESCONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
(Restated)
Sales revenue2.1232,274 254,908
Cost of sales(133,427)(139,677)
Gross profit2.198,847 115,231
Distribution and glazing-related expenses(43,361)(46,068)
Selling and marketing expenses(13,267)(14,395)
Administration expenses(31,010)(33,573)
Other income6,738 582
Profit before significant items, interest and tax17,947 21,777
Significant items2.4951 (91,074)
Profit/(Loss) before interest and tax18,898 (69,297)
Finance expense(6,768)(7,145)
Finance income100 101
Profit/(Loss) before income taxation12,230(76,341)
Income taxation expense6.1(3,686)(2,520)
Profit/(Loss) for the year8,544(78,861)
Other comprehensive income
Items that may be reclassified to profit or loss in the future:
Exchange differences on translation of foreign operations530 (11)
Cash flow hedges (net of tax)(1,151)978
Total comprehensive income/(loss) for the year attributable to shareholders 7,923(77,894)
Earnings per share
Basic and diluted earnings per share (cents per share)2.54.6 (42.5)
The Board of Directors authorised these financial statements for issue on 21 May 2021.
For and on behalf of the Board:
Peter Griffiths Graham Stuart
Chair Director
Consolidated Statement of Comprehensive Income
for the year ended 31 March 2021
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
22
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Consolidated Statement of Financial Position
at 31 March 2021
NOTESCONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
(Restated)
ASSETS
Current assets
Cash and cash equivalents7,530 14,742
Trade receivables3.133,97833,294
Inventories3.218,466 20,276
Derivative financial instruments3.5136 1,982
Other current assets6,393 12,711
Total current assets66,503 83,005
Non-current assets
Property, plant and equipment4.152,467 59,645
Right-of-use assets4.250,626 50,363
Deferred tax assets6.210,241 7,908
Intangible assets4.358,051 57,499
Total non-current assets171,385175,415
Total assets237,888258,420
LIABILITIES
Current liabilities
Trade and other payables3.327,86224,601
Deferred income3.42,0767,366
Income tax liability445 2,766
Derivative financial instruments3.5374 200
Lease liabilities5.26,559 5,552
Provisions1,7241,992
Total current liabilities39,040 42,477
Non-current liabilities
Interest-bearing liabilities5.155,519 81,630
Derivative financial instruments3.51,575 1,986
Lease liabilities5.254,042 53,933
Provisions3,665 2,551
Total non-current liabilities114,801 140,100
Total liabilities153,841 182,577
Net assets84,047 75,843
Equity
Contributed equity5.3307,198 307,198
Retained earnings(52,925)(61,469)
Group reorganisation reserve(170,665)(170,665)
Share-based payments reserve6.31,212 931
Foreign currency translation reserve515 (15)
Cash flow hedge reserve(1,288)(137)
Total equity84,04775,843
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
23
CONSOLIDATED
2021
Notes
Contributed
equity
$’000
Reserves
$’000
Retained
earnings
$’000
Total
$’000
Opening balance at 1 April 2020307,198 (169,886)(61,469)75,843
Profit for the year––8,5448,544
Movement in foreign currency translation reserve–530 –530
Other comprehensive income for the year3.5–(1,151)–(1,151)
Total comprehensive income/(loss) for the year–(621)8,544 7,923
Dividends paid––––
Payments received on management incentive plan shares5.3––––
Vesting of employee share purchase scheme5.3––––
Movement in share-based payments reserve6.3–281 –281
Total transactions with owners, recognised directly in equity–281 –281
Balance at 31 March 2021307,198(170,226)(52,925)84,047
CONSOLIDATED
2020
Contributed
equity
$’000
Reserves
$’000
Retained
earnings
$’000
Total
$’000
Opening balance at 1 April 2019306,693 (171,059)21,329 156,963
Change in accounting policy (adoption of NZ IFRS 16)– – (3,937)(3,937)
Restated total equity at 1 April 2019306,693(171,059)17,392 153,026
Restated loss for the year6.7– – (78,861)(78,861)
Movement in foreign currency translation reserve– (11)– (11)
Other comprehensive income /(loss) for the year– 978 – 978
Total comprehensive income/(loss) for the year– 967 (78,861)(77,894)
Dividends paid– – – –
Payments received on management incentive plan shares5.3144 ––144
Vesting of employee share purchase scheme361 (181)–180
Movement in share-based payments reserve6.3– 387 – 387
Total transactions with owners, recognised directly in equity505 206 – 711
Balance at 31 March 2020307,198 (169,886)(61,469)75,843
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
Consolidated Statement of Changes in Equity
for the year ended 31 March 2021
24
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Consolidated Statement of Cash Flows
for the year ended 31 March 2021
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Cash flows from operating activities
Receipts from customers234,450259,636
Payments to suppliers and employees(196,996)(215,143)
Government grants received6,510–
Interest received100101
Interest paid(3,094)(3,786)
Interest paid on leases(3,064)(3,227)
Income taxes paid(7,532)(6,007)
Net cash inflow from operating activities30,37431,574
Cash flows from investing activities
Proceeds from sale of property, plant and equipment3,714–
Payments for property, plant and equipment(5,793)(8,834)
Payments for intangible assets(1,752)(636)
Net cash outflow from investing activities(3,831)(9,470)
Cash flows from financing activities
Lease liability principal payments(5,789)(6,407)
Repayment of borrowings (net)(31,146)(6,522)
Drawdown of other financing3,632–
Other financing principal payments(445)–
Payments received on management incentive plan shares–144
Net cash outflow from financing activities(33,748)(12,785)
Net (decrease)/increase in cash and cash equivalents(7,205)9,319
Cash and cash equivalents at the beginning of the year14,7425,488
Effects of exchange rate changes on cash and cash equivalents(7)(65)
Cash and cash equivalents at the end of the year7,53014,742
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
The table below sets out the annual movement in net debt:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Opening balance of interest-bearing liabilities at 1 April81,63088,832
Repayment of borrowings(31,146)(6,522)
Other financing movement (net)3,187–
Foreign exchange and other adjustments1,848(680)
Closing balance of interest-bearing liabilities at 31 March55,51981,630
Less: cash and cash equivalents(7,530)(14,742)
Net debt at 31 March47,98966,888
25
Consolidated Statement of Cash Flows (continued)
for the year ended 31 March
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Reconciliation of profit/(loss) after income tax to net cash inflow from operating activities
Profit/(loss) for the Period8,544(78,861)
Items not involving cash flows
Depreciation and amortisation20,41221,670
Property, plant and equipment (gain)/loss on disposal(951)2,349
Impairment of intangible assets–86,500
Share-based payments expense281374
Movement in deferred tax(1,545)(3,482)
Movement in credit loss provision(1,435)882
COVID-19 rent relief(367)–
Loss/(surplus) on disposal of assets324(29)
Other211185
16,930108,449
Impact of changes in working capital items
Trade and other receivables1,2434,546
Inventory2,0722,600
Other current assets5,732(7,375)
Trade accounts payable and employee entitlements2,608(4,544)
Deferred income(5,293)6,287
Interest accruals184(13)
General provisions675127
Income tax liability(2,321)358
4,9001,986
Net cash inflow from operating activities30,37431,574
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
26
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements
1 Basis of Preparation
1.1 Basis of preparation
Reporting entity
These financial statements are for Metro
Performance Glass Limited (‘the Company’)
and its subsidiaries (together, ‘the Group’).
The Group supplies processed flat glass
and related products primarily to the
residential and commercial building sectors.
The Company is a for-profit entity for
financial reporting purposes and has
operations and sales in New Zealand
and Australia.
Statutory base
The Company is a limited liability company
incorporated and domiciled in New Zealand.
The address of its registered office is
5 Lady Fisher Place, East Tamaki, Auckland.
The incorporation date for Metro
Performance Glass Limited was 30 May
2014 and as part of a group reorganisation
was listed on the New Zealand Securities
Exchange (NZSX) on 29 July 2014.
Basis of preparation
These consolidated financial statements
have been approved for issue by the Board
of Directors on 21 May 2021.
The consolidated financial statements
of the Group have been prepared in
accordance with Generally Accepted
Accounting Practice in New Zealand (NZ
GAAP). The Group is a for-profit entity for
the purposes of complying with NZ GAAP.
The consolidated financial statements
comply with New Zealand equivalents to
International Financial Reporting
Standards (NZ IFRS), other New Zealand
accounting standards and authoritative
notices that are applicable to entities that
apply NZ IFRS. The consolidated financial
statements also comply with International
Financial Reporting Standards (IFRS).
Metro Performance Glass Limited is a
limited liability company registered under
the New Zealand Companies Act 1993 and
is a Financial Market Conduct reporting
entity under Part 7 of the Financial
Markets Conduct Act 2013. The financial
statements of the Group have been
prepared in accordance with the
requirements of the New Zealand Stock
Exchange (NZX) Main Board Listing Rules.
Historical cost convention
The financial statements have been
prepared under the historical cost
convention, except for the revaluation of
certain financial assets and financial
liabilities at fair value.
Principles of consolidation
The financial statements incorporate the
assets and liabilities of all subsidiaries of
Metro Performance Glass Limited (‘the
company’ or ‘the parent entity’) as at
31 March 2021 and the results of all
subsidiaries for the year then ended.
Subsidiaries are all entities over which the
Group has control. It is a controlled entity
of the Company if the Company is exposed
and has a right to variable returns from
the entity and is able to use its power over
the entity to affect those returns.
Subsidiaries are fully consolidated from the
date on which control is transferred to the
Group. They are de-consolidated from the
date that control ceases.
Intercompany transactions, balances and
unrealised gains on transactions between
Group companies are eliminated. Unrealised
losses are also eliminated unless the
transaction provided evidence of the
impairment of the asset transferred.
Goods and Services Tax (GST)
The statement of comprehensive income
has been prepared so that all components
are stated exclusively of GST. All items in
the statement of financial position are
stated net of GST, with the exception
of receivables and payables, which include
GST invoiced.
Critical accounting estimates
and judgements
Estimates and judgements are continually
evaluated and are based on historical
experience and other factors, including
expectations of future events that are
believed to be reasonable under the
circumstances.
The Group makes estimates and
assumptions concerning the future. The
resulting accounting estimates will, by
definition, seldom equal the related actual
results. The estimates and assumptions
that have a significant risk of causing a
material adjustment to the carrying
amounts of assets and liabilities within the
next financial year are discussed in each
accounting note as appropriate.
Foreign Currency Translation
Functional and presentation currency
The consolidated financial statements are
presented in New Zealand dollars, which is
the Company’s functional and presentation
currency and rounded where necessary to
the nearest thousand dollars.
Transactions and balances
Foreign currency transactions are
translated using the exchange rates
prevailing at the dates of the transactions.
Foreign exchange gains and losses
resulting from the settlement of such
transactions and from the translation at
period end exchange rates of monetary
assets and liabilities denominated in
foreign currencies are recognised in profit
or loss. They are deferred in equity if they
relate to qualifying cash flow hedges and
qualifying net investment hedges or are
attributable to part of the net investment
in a foreign operation.
The results and financial position of foreign
operations that have a functional currency
different from the presentation currency
are translated into the presentation
currency as follows:
• assets and liabilities for each balance
sheet presented are translated at the
closing rate at the date of that
balance sheet
• income and expenses for each
statement of profit or loss and
statement of comprehensive income are
translated at average exchange rates
(unless this is not a reasonable
approximation of the cumulative effect
of the rates prevailing on the
transaction dates, in which case income
and expenses are translated at the
dates of the transactions), and
• all resulting exchange differences are
recognised in ‘Other comprehensive
income’.
27
Notes to the Consolidated Financial Statements (continued)
Changes In Accounting Policy And
Disclosures
New and amended standards adopted
by the Group
The Group adopted the practical expedient
provided by the amendment to NZ IFRS 16:
Leases in relation to rent concessions
received as a result of COVID-19. In
adopting the practical expedient the
impact of the rent concessions on the
lease liabilities were reflected by a
corresponding expense reduction
recognised in the consolidated statement
of comprehensive income. The practical
expedient was applied to all rent
concessions.
Apart from the above, the accounting
policies applied are consistent with those
of the annual financial statements for the
year ended 31 March 2020, and as
described in those annual financial
statements.
There have been no changes to accounting
policies and no new standards adopted
during the year.
1.2 COVID-19
On 11 March 2020 the World Health
Organization declared a global pandemic as
a result of the outbreak and spread of
COVID-19. Following this, on Wednesday 25
March 2020, the New Zealand Government
raised its Alert Level to 4 (full lockdown of
non-essential services), moving down to
Alert Level 3 on 27 April 2020, Alert Level 2
on 14 May 2020 and to Alert Level 1 on 9
June 2020. During Alert Level 4, the Group’s
operations in New Zealand were deemed a
non-essential service, and as a result, the
Group’s New Zealand manufacturing plants
and all branches were shut down from 25
March 2020 to 27 April 2020. The shutdown
severely impacted trading in New Zealand
over that period. The Group’s Australian
business operations and profitability were
negatively impacted late in the finanial year
by further COVID-19 restrictions, in
particular with shut downs affecting
Victoria in February 2021.
An assessment of the impact of COVID-19
on the Group balance sheet based on
information available at the time of
preparing the financial statements can be
found within the following notes to the
consolidated financial statements.
2 Financial Performance
2.1 Segment Information
Operating segments of the Group at 31
March 2021 have been determined based
on financial information that is regularly
reviewed by the Board in conjunction with
the Chief Executive Officer and Chief
Financial Officer, collectively known as the
Chief Operating Decision-maker for the
purpose of allocating resources, assessing
performance and making strategic
decisions.
Substantially all of the Group’s revenue is
derived from the sale of glass and related
products and services. This revenue is split
by channel only at the revenue level into
Commercial Glazing, Residential and
Retrofit. Commercial glazing revenue
reflects sales through four specific
commercial glazing operations in
New Zealand. The allocation of sales
between residential and commercial can be
difficult as the Group does not always
know the end-use application. Following the
acquisition of Australian Glass Group Pty
Ltd (AGG) on 1 September 2016 the Group
operates in two geographic segments, New
Zealand and Australia.
28
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
In the tables below:
• Group costs consist of insurance, professional services, director fees and expenses, listing fees and share incentive scheme costs.
• significant items related to impairment of goodwill in New Zealand and costs associated with the restructure of NSW operations in
2020, and gain on disposal of vehicles pursuant to sale and leaseback agreements relating to the New Zealand vehicle fleet in 2021.
CONSOLIDATED 2021
New Zealand
$’000
Australia
$’000
Eliminations
and Other
$’000
Group
$’000
Commercial Glazing36,761 ––36,761
Residential118,171 52,490 –170,661
Retrofit24,852 ––24,852
Total revenue179,784 52,490 –232,274
Gross profit86,384 12,463 –98,847
Segmental EBITDA before significant items34,6034,505 –39,108
Group costs––(749)(749)
Group EBITDA before significant items38,359
Depreciation and amortisation(15,197)(5,215)–(20,412)
EBIT before significant items19,406 (710)(749)17,947
Significant items951 – 951
EBIT20,357 (710)(749)18,898
Segment assets275,980 65,950 (104,042)237,888
Segment non–current assets (excluding deferred tax assets)114,163 46,981 –161,144
Segment liabilities75,832 21,989 56,020 153,841
CONSOLIDATED 2020
New Zealand
$’000
Australia
$’000
Eliminations
and Other
$’000
Group
$’000
Commercial glazing40,139 ––40,139
Residential141,551 51,872 –193,423
Retrofit21,346 ––21,346
Total revenue203,036 51,872 –254,908
Gross profit104,134 11,097 –115,231
Segmental EBITDA before significant items41,879 2,608 44,487
Group costs––(1,040)(1,040)
Group EBITDA before significant items–––43,447
Depreciation and amortisation(15,467)(6,203)–(21,670)
EBIT before significant items26,412 (3,595)(1,040)21,777
Significant items(86,500)(4,574)–(91,074)
EBIT(60,088)(8,169)(1,040)(69,297)
Segment assets265,070 63,828 (70,478)258,420
Segment non–current assets (excluding deferred tax assets)123,303 44,204 –167,507
Segment liabilities79,802 61,854 40,921 182,577
29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
2.2 Revenue
Accounting policy
Revenue comprises the value of the consideration received for the sale of goods and services, net of GST, rebates and discounts and
after eliminating sales within the Group.
The Group derives revenue from the sale of customised glass products. Revenue is recognised at a point in time when a Group entity
has transferred control, which is when it has delivered the glass products to the customer, the customer has accepted the products
and collectability of the related receivables is highly probable.
The Group also provides glazing services along with the sale of its glass products. Revenue is recognised for the glazing and associated
glass products when the glazing services have been completed, the customer has approved the installation services and collectability
of the related receivables is highly probable.
2.3 Operating expenditure
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Raw materials and consumables used63,701 67,296
Employee benefit expenses98,766 100,899
Subcontractor costs5,423 5,039
Depreciation and amortisation20,412 21,670
Transportation and logistics8,146 10,028
Occupancy costs1,052 1,014
Advertising879 1,950
Other expenses22,686 25,817
Total cost of sales, distribution and glazing related expenses, selling and marketing
expenses, and administration expenses221,065 233,713
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Audit and review of financial statements
Audit and review of financial statements - PwC367 376
Other services performed by PwC
Assurance report relating to the Group’s covenant compliance certificate5–
Real estate advisory services– 20
372 396
30
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
2.4 Significant items
CONSOLIDATEDCONSOLIDATED
Note
2021
$’000
2020
$’000
Gain on disposal of vehicles under sale & leaseback agreement6.8(951)–
Impairment of New Zealand intangible assets–86,500
Restructure of New South Wales operations–4,574
Total significant items before taxation(951)91,074
Tax expense/(benefit) on above items266 (1,372)
Tax adjustments relating to prior periods–(916)
Total significant items after taxation(685)88,786
Gain on disposal of vehicles under sale & leaseback agreement
The Group entered into two sale and leaseback agreements relating to the New Zealand vehicle fleet during the year ended 31 March 2021.
Additional details around this transaction can be seen in Note 6.8.
Accounting policy
Significant items are a non-GAAP measure and are based on the Group’s internal policy as follows: Transactions considered for
classification as significant items are material restructuring costs, acquisition and disposal costs, impairment or reversal of impairment
of assets, business integration, and transactions or events outside of the Group’s ongoing operations that have a significant impact on
reported profit. See page 20 of the Annual Report for more information on non-GAAP measures.
2.5 Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted average number of ordinary shares
outstanding during the period.
CONSOLIDATEDCONSOLIDATED
20212020
Profit/(loss) after tax ($’000)8,544 (78,861)
Weighted average number of ordinary shares outstanding (‘000s)185,378 185,378
Basic earnings per share (cents per share)4.6 (42.5)
31
EBITDAIBAI:TA BEDBbefoITfAreEoE eobADIoITsTEID
Notes to the Consolidated Financial Statements (continued)
Net tangible assets
Net tangible assets per share is a non-GAAP measure that is required to be disclosed by the NZX Listing Rules.
The calculation of the Group’s net tangible assets per share and its reconciliation to the consolidated balance sheet is presented below:
CONSOLIDATEDCONSOLIDATED
20212020
Total assets ($’000)237,888 258,420
Less: intangible assets(58,051)(57,499)
Less: total liabilities(153,841)(182,577)
Net tangible assets ($’000)25,996 18,344
Shares on issue at the end of the period (‘000s)185,378 185,378
Net tangible assets per share (cents per share)14.02 9.90
3 Working Capital
3.1 Trade receivables
The following table summarises the impact of the credit loss provision on the trade receivables balance:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Trade receivables35,295 36,132
Credit loss provision(1,317)(2,838)
33,97833,294
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Movements in the credit loss provision are as follows:
Opening balance2,838 1,961
Provision for impairment recognised/(reversed) during the year(1,435)1,533
Receivables written off during the year as uncollectable(86)(656)
Balance at the end of the year1,317 2,838
32
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
Credit risk
Credit risk arises from cash and cash equivalents, deposits with banks and financial institutions, and credit exposures to wholesale and
retail customers, including outstanding receivables and committed transactions, and is managed at Group level.
The table below sets out information about the credit quality of trade receivables net of the expected credit loss provision:
Current
0-59 days
1
60–89 days
90 days
and later
TOTAL
31 March 2021$’000$’000$’000$’000$’000
Gross carrying amount 27,429 3,785 963 3,118 35,295
Baseline 57 12 10 108 187
Market 92 14 1 111 218
Specific – – – 912 912
Total expected credit loss rate0.54%0.69%1.14%36.27%3.73%
Credit loss provision 149 26 11 1,131 1,317
Current
30–59 days
60–89 days
90 days
and later
TOTAL
31 March 2020$’000$’000$’000$’000$’000
Gross carrying amount 21,772 8,037 2,029 4,294 36,132
Baseline 128 196 146 896 1,366
Market 53 10 8 203 274
Specific – – – 1,198 1,198
Total expected credit loss rate0.83%2.57%7.59%53.49%7.85%
Credit loss provision 181 206 154 2,297 2,838
The Group extends credit to its customers based on an assessment of credit worthiness. Terms differ by customer and may extend to
60 days past invoice date. Ageing is based on agreed credit terms and at balance date, a portion of the Group’s receivables are also
subject to contractual retentions which can last up to and exceed 12 months.
As of 31 March 2021, allowing for retention balances of $1.6 million (2020: $3.2 million) trade receivables of $4.9 million (2020: $8.5 million)
were past due but not impaired.
1. During the year ended 31 March 2021, the New Zealand business completed a system change which resulted in the trade receivables ageing being calculated based on due date rather
than invoice date, with the exception of contractual retentions and AGG trade receivables which continue to be aged based on invoice date. Management believe there is no material
impact as a result of this change in presentation.
Critical estimates and judgements
Credit loss provision
To measure expected credit losses, trade receivables have been grouped and reviewed on the basis of the number of days past due. The
credit loss provision has been calculated by considering the impact of the following characteristics:
• The baseline loss rate takes into account the write-off history of the Group over a five-year period as a predictor of future conditions
and applies an increasing expected credit loss estimate by trade receivables ageing profiles.
• The market characteristic considers the relative risk related to any particular market segment and makes an assessment of the
indirect exposure the Group has in respect of this market segment’s conditions via its customer base. Of particular focus with respect
to this characteristic in the current period is the direct and indirect exposure to the vertical construction market segment.
• Specific credit loss provisions are made based on any specific customer collection issues that are identified. Collections and payments
from the Group’s customers are continuously monitored and a credit loss provision is maintained to cover any specific customer credit
losses anticipated.
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
COVID-19 impact
Reflecting the uncertainties prevalent as at 31 March 2020 (prior year), the Group’s assessment of credit risk on its customer base taking
into consideration the factors below was increased to $2.8 million:
• profile of the customer
• region the customer is based in
• size and nature of the customer
• the Group’s understanding of and experience with the customer.
As economic conditions stabilised in the construction sector during the year, the Group has revised its credit risk assessment accordingly
resulting in a decrease in its baseline and specific provisions to $1.3 million (2020: $2.8 million).
Accounting policy
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less provision for estimated
uncollectable amounts and expected credit losses. The carrying amount of the asset is reduced through the use of provision accounts,
and the amount of the loss is recognised in the statement of comprehensive income within ‘Administration expenses’. Individual debtor
accounts are reviewed for impairment and a provision is raised based on management’s best estimate of recoverability. Trade receivables
are also assessed for credit risk on a forward-looking basis with a provision raised where a credit loss is considered likely. When a trade
receivable is uncollectable, it is written off against the provision account for trade receivables. Subsequent recoveries of amounts
previously written off are credited to the income statement against the impairment losses on receivables.
3.2 Inventories
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Raw materials, primarily flat glass stock-sheets16,222 17,759
Work in progress2,244 2,517
18,466 20,276
The cost of inventories recognised as an expense and included in ‘Cost of sales’ amounted to $63.5 million (20: $67.4 million).
Accounting policy
Raw materials and stock, work in progress and finished goods are stated at the lower of cost and net realisable value. Cost comprises
direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the
basis of normal operating capacity. Costs are assigned to individual items of inventory on the basis of weighted average costs. Net
realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated
costs necessary to make the sale.
3.3 Trade and other payables
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Trade accounts payable17,278 17,354
Employee entitlements7,304 6,347
GST payable913 428
Other interest accruals362 175
Management incentive accrual2,005 297
27,862 24,601
34
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
Trade accounts payables
These amounts represent liabilities for goods and services provided to the Group prior to the end of the financial period which are unpaid.
The carrying amount represents fair value due to their short-term nature.
Employee entitlements
Liabilities for wages and salaries, including non-monetary benefits, annual leave and lieu leave, are recognised in respect of employees’
services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Liabilities for
non-accumulating sick leave are recognised when the leave is taken and measured at the rates paid or payable.
The Group recognises a liability and an expense for bonuses on a formula that takes into consideration the profit attributable to the
Group’s shareholders. The Group recognises a provision where contractually obliged or where there is a past practice that has created
a constructive obligation.
3.4 Deferred Income
The Group recognises a contract liability when a deposit is received before the product or service is transferred to the customer.
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Customer contract liabilities2,076 1,290
New Zealand Government wage subsidy–6,076
2,076 7,366
COVID-19 impact
The Group applied for the New Zealand Government wage subsidy prior to 31 March 2020, receiving it in early April 2020. In the year ended
31 March 2021 $6.1 million has been recognised in ‘Other income’ in the consolidated statement of comprehensive income as the amount
offsetting wages paid over the lockdown period (2020: $0.4 million). The corresponding amount receivable relating to the prior year
($6.5 million) is included in ‘Other current assets’ comparative.
Grants from the government are recognised at their fair value where there is reasonable assurance that the grant will be received and
when the Group will comply with the attached conditions. Government grants relating to income are deferred and recognised in profit or
loss over the period necessary to match them with the conditions that they are intended to compensate. The Group received $6.5 million
from the New Zealand wage subsidy scheme, which was recognised over the 12 week period following the application for the subsidy in
March 2020 resulting in the recognition of government grant income of $6.1 million in the current year (2020: $0.4 million). These amounts
are presented as other income in the statement of comprehensive income.
3.5 Financial instruments
Financial Instruments
Management determines the classification of the Group’s financial liabilities at initial recognition. The Group’s financial liabilities for the
periods covered by these consolidated financial statements consist of overdrafts, loans, trade and other payables, interest rate swaps
and forward exchange contracts.
The Group measures all financial liabilities, with the exception of interest rate swaps and forward exchange contracts, at amortised cost.
Interest rate swaps and forward exchange contracts are measured at fair value with changes in fair value recognised in ‘Other
comprehensive income’.
Financial liabilities measured at amortised cost are non-derivative financial liabilities with fixed or determinable payments that are not
quoted in an active market. Trade and other payables, bank overdrafts and loans are classified as financial liabilities measured at
amortised cost.
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
Fair value measurement of financial assets and liabilities
The Group’s financial assets and liabilities by category are summarised as follows:
Cash and cash equivalents
These are short term in nature and their carrying value is equivalent to their fair value.
Trade and other receivables
These assets are short term in nature and are reviewed for impairment; their carrying value approximates their fair value.
Trade payables and borrowings
Trade payables and borrowings are measured at amortised cost. The fair value of trade and other payables approximates carrying value
due to their short-term nature. The carrying value of the Group’s bank borrowings also represents the fair value of the borrowings due
to management’s assessment that the interest rates approximate the market interest rate for a commercial loan of a comparable
lending period.
The Group’s activities expose it to a variety of financial risks: market risk (including currency risk, fair value interest rate risk, cash flow
interest rate risk), credit risk and liquidity risk. The Group’s overall financial risk management is carried out by a central finance function
(the head office finance team) under policies approved by the board of directors, including the Treasury policy. The head office finance
team focuses on the unpredictability of financial markets and identifies, evaluates and seeks to hedge financial risks in close co-operation
with the Group’s operating units to minimise potential adverse effects on the financial performance of the Group. The board approves
policies covering foreign exchange risk, interest rate risk and credit risk. The Group uses derivative financial instruments such as foreign
exchange contracts and interest rate swaps to hedge certain risk exposures. The Group uses different methods including sensitivity
analysis in the case of interest rate, foreign exchange and other price risks and ageing analysis for credit risk to measure risk.
Derivatives
The Group holds derivative financial instruments to hedge its foreign currency exposure and interest costs. The Group has designated
forward exchange contracts and interest rate swaps as cash flow hedge instruments.
Cash flow hedges – forward exchange contracts and interest rate swaps
Cash flow hedge instruments hedge the exposure to variability in cash flows that (i) is attributable to a particular risk associated with a
recognised asset or liability or a highly probable forecast transaction and (ii) could affect profit or loss.
The fair value of financial instruments traded in active markets by the Group is based on the current bid price and for financial liabilities is
the current ask price.
At 31 March 2021 all financial instruments measured at fair value (interest rate swaps and forward exchange contracts) were valued using
valuation techniques where all significant inputs were based on observable market data. Accordingly they are categorised as level 2.
Specific valuation techniques used to value the Group’s financial instruments are as follows:
• The fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date, with the
resulting value discounted back to present value.
• The fair value of interest rate swap contracts is determined using forward interest rates at the balance sheet date, with the resulting
value discounted back to present value.
These fair values are based on valuations provided by the Westpac Banking Corporation and ASB Bank Limited as at 31 March 2021.
The Group’s cash flow hedging reserves relate to the following hedging instruments:
CONSOLIDATED 2021
Spot component
of currency
forwards
$’000
Interest rate
swaps
$’000
Total hedge
reserve
$’000
Opening balance 1 April 2020(1,380)1,517 137
Change in fair value of hedging instrument recognised in ‘Other comprehensive
income’ (OCI)2,163 (554)1,609
Deferred tax(616)158 (458)
Balance at 31 March 2021167 1,121 1,288
36
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
The effects of the foreign-currency-related hedging instruments on the Group’s financial position and performance are as follows:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Foreign currency forwards
Carrying amount asset/(liability)(238)1,925
Notional amount23,375 23,597
Maturity dateApr21-Mar22Apr20-Mar21
Hedge ratio
1
1:11:1
Change in discounted spot value of outstanding hedging instruments since 1 April2,163 (2,241)
Change in value of hedged item used to determine hedge effectiveness(2,163)2,241
Weighted average hedged EUR/NZD rate for the year (including forward points)0.5843 0.5732
Weighted average hedged USD/NZD rate for the year (including forward points)0.6971 0.6487
Weighted average hedged EUR/AUD rate for the year (including forward points)0.6326 0.6154
Weighted average hedged USD/AUD rate for the year (including forward points)0.7265 0.6979
1 The foreign currency forwards are denominated in the same currency as the highly probably future inventory purchases (USD and EUR); therefore, the hedge is 1:1.
The effects of the interest rate swaps on the Group’s financial position and performance are as follows:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Interest rate swaps
Carrying amount (liability)(1,575)(2,129)
Notional amount23,402 35,272
Maturity dateÁug23Jul20-Aug23
Hedge ratio1:11:1
Change in fair value of outstanding hedging instruments since 1 April(554)900
Change in value of hedged item used to determine hedge effectiveness554 (900)
Average proportion of debt hedged during the year37.60%48.60%
37
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
Financial instruments by category
CONSOLIDATED 2021
Assets at
amortised cost
$’000
Derivatives used
for hedging
$’000
Total
$’000
Assets as per statement of financial position
Cash and cash equivalents7,530 –7,530
Derivatives - foreign exchange contracts–136 136
Derivatives - interest rate swaps–––
Trade and other receivables33,978–33,978
Balance at 31 March 202141,508136 41,644
CONSOLIDATED 2020
Assets at
amortised cost
$’000
Derivatives used
for hedging
$’000
Total
$’000
Assets as per statement of financial position
Cash and cash equivalents14,742 – 14,742
Derivatives - foreign exchange contracts– 1,982 1,982
Derivatives - interest rate swaps– – –
Trade and other receivables33,294 – 33,294
Balance at 31 March 202048,036 1,982 50,018
CONSOLIDATED 2021
Liabilities at
amortised cost
$’000
Derivatives used
for hedging
$’000
Total
$’000
Liabilities as per statement of financial position
Cash and cash equivalents–––
Trade and other payables excluding non-financial liabilities26,033 –26,033
Provisions5,389 –5,389
Derivatives - foreign exchange contracts–374 374
Derivatives - interest rate swaps–1,575 1,575
Interest-bearing liabilities55,519 –55,519
Lease liabilities60,601 –60,601
Balance at 31 March 2021147,542 1,949 149,491
38
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
CONSOLIDATED 2020
Liabilities at
amortised cost
$’000
Derivatives
used for hedging
$’000
Total
$’000
Liabilities as per statement of financial position
Cash and cash equivalents– – –
Trade and other payables excluding non-financial liabilities23,354 – 23,354
Provisions4,543 – 4,543
Derivatives - foreign exchange contracts– 57 57
Derivatives - interest rate swaps– 2,129 2,129
Interest-bearing liabilities81,630 – 81,630
Lease liabilities59,485 59,485
Balance at 31 March 2020169,012 2,186 171,198
Accounting policy
On initial designation of a derivative as a cash flow hedging instrument, the Group formally documents the relationship between the
hedging instrument and hedged item, including the risk management objectives and strategy in undertaking the hedge transaction.
Documentation includes the nature of the risk being hedged, together with the methods that will be used to assess the hedging
instrument’s effectiveness. The Group also documents its assessment, both at the inception of the hedge relationship as well as
on an ongoing basis, of whether the hedging instruments are expected to be highly effective in offsetting the changes in cash flows
of the respective hedged items.
The effective portion of the changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognised in
‘Other comprehensive income’ and presented in the hedging reserve in equity. The gain or loss relating to the ineffective portion is
recognised immediately in the profit or loss section of the statement of comprehensive income.
Foreign exchange risk
Foreign exchange risk arises when future commercial transactions and purchases of recognised assets are denominated in a currency
that is not NZD which is the company’s functional currency. Approximately 95% of annual flat-sheet glass raw materials are purchased
in foreign currencies, being United States Dollar (USD), Euro (EUR) and Australian Dollar (AUD). In accordance with the Company Treasury
policy, foreign exchange risk is managed prospectively over a period to a maximum period of 12 months with allowable limits of coverage
up to 100% over the 6-month term, reducing to 50% up to the 12-month term. Where deemed acceptable by the directors, coverage can
be extended over a longer period.
39
EBITDAIBAI:TA BEDBbefoITfAreEoE eobADIoITsTEID
Notes to the Consolidated Financial Statements (continued)
Cash and cash equivalents
Exposure to foreign exchange risk
CONSOLIDATED 2021
AUD
$’000
USD
$’000
EUR
$’000
31 March 2021
Cash and cash equivalents621 11
Trade receivables7,663 ––
Trade accounts payable(5,270)(2,402)(424)
Balance at 31 March 20213,014 (2,401)(423)
CONSOLIDATED 2020
AUD
$’000
USD
$’000
EUR
$’000
31 March 2020
Cash and cash equivalents2,600 – –
Trade receivables8,196 – –
Trade accounts payable(4,924)(3,461)(129)
Balance at 31 March 20205,872 (3,461)(129)
Cash flow hedge reserve movement shown in the statement of comprehensive income reflects the tax-affected change in fair value of
forward foreign exchange currency contracts during the reporting period.
40
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
Sensitivity analysis
The following table details the Group’s sensitivity to a 10% strengthening/weakening of the New Zealand Dollar (NZD) against the following
currencies at the reporting date. The table shows the (decrease)/increase in profit or loss and equity as a result of the 10% movements.
The analysis assumes that all other variables, in particular interest rates, remain constant. The same basis has been applied for all
periods presented.
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Profit or loss
10% strengthening of the NZD against:
AUD(274)(534)
USD218 315
EUR38 12
10% weakening of the NZD against:
AUD335 653
USD(267)(385)
EUR(47)(14)
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Equity
10% strengthening of the NZD against:
USD(1,885)(2,155)
EUR(218)(165)
10% weakening of the NZD against:
USD2,304 2,634
EUR267 202
Profit or loss movements are mainly attributable to the exposure outstanding on AUD trade receivables at the end of the reporting
period. Equity movements are the result of changes in fair value of derivative instruments designated as hedging instruments in cash
flow hedges.
Commodity cost risk
The primary raw material used by the Group is flat glass which is imported from suppliers around the world. While there are numerous
manufacturers of flat sheet glass, the Group is exposed to commodity price risk and therefore manages access to supply through close
relationships with suppliers. Cost is an important variable in the determination of supply, and the Group is clearly exposed to changes
in the cost of glass.
41
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
4 Long-Term Assets
4.1 Property, Plant and equipment
CONSOLIDATED 2021
Plant and
equipment
$’000
Furniture,
fittings and
equipment
$’000
Motor vehicles
$’000
Total
$’000
Opening balance
Cost83,509 3,910 16,682 104,101
Accumulated depreciation(33,376)(2,973)(8,107)(44,456)
Net book value at 1 April 202050,133 937 8,575 59,645
Additions3,928 469 925 5,322
Disposals(580)(1)(2,056)(2,637)
Depreciation expense(8,471)(478)(1,692)(10,641)
Foreign exchange impact730 –48 778
Closing net book value at 31 March 202145,740 927 5,800 52,467
Represented by:
Cost87,099 4,378 10,882 102,359
Accumulated depreciation(41,359)(3,451)(5,082)(49,892)
Net book value at 31 March 202145,740 927 5,800 52,467
CONSOLIDATED 2020
Plant and
equipment
$’000
Furniture,
fittings and
equipment
$’000
Motor vehicles
$’000
Total
$’000
Opening balance
Cost81,403 3,258 15,061 99,722
Accumulated depreciation(25,756)(2,478)(6,907)(35,141)
Net book value at 1 April 201955,647 780 8,154 64,581
Additions5,527 652 3,101 9,280
Disposals(2,396)-(389)(2,785)
Depreciation expense(8,469)(495)(2,271)(11,235)
Foreign exchange impact(176)-(20)(196)
Closing net book value at 31 March 202050,133 937 8,575 59,645
Represented by:
Cost83,509 3,910 16,682 104,101
Accumulated depreciation(33,376)(2,973)(8,107)(44,456)
Net book value at 31 March 202050,133 937 8,575 59,645
42
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
Critical estimates and judgements
Economic lives of intangible assets and property, plant and equipment
Property, plant and equipment are long-lived assets that are amortised/depreciated over their estimated useful lives. The estimated
useful lives are reviewed annually and may change if necessary. The actual useful life of an asset may be shorter or longer than what had
been estimated, which will affect amortisation, depreciation and the carrying values of these assets.
Accounting policy
All property, plant and equipment is stated at historical cost less depreciation and impairment. Historical cost includes expenditure that
is directly attributable to the acquisition of the items.
Land is not depreciated. Depreciation of property, plant and equipment is calculated using the straight-line value method to allocate the
cost of assets over their expected useful lives. The rates are as follows:
Depreciation
rate
Depreciation
basis
Leasehold improvements7.0-15%Straight line
Plant and equipment7.0-15%Straight line
Motor vehicles12-20%Straight line
Furniture, fixtures and fittings20-25%Straight line
43
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
4.2 Right-of-use assets
CONSOLIDATED 2021
Property
$’000
Motor vehicles
$’000
Equipment
$’000
Total
$’000
Opening balance
Cost84,778 368 204 85,350
Accumulated depreciation(34,773)(169)(45)(34,987)
Net book value at 1 April 202050,005 199 159 50,363
Additions4,639 2,400 –7,039
Disposals–(18)–(18)
Depreciation expense(6,760)(377)(56)(7,193)
Foreign exchange impact423 7 5 435
Closing net book value at 31 March 202148,307 2,211 108 50,626
Represented by:
Cost83,280 2,765 210 86,255
Accumulated depreciation(34,973)(554)(102)(35,629)
Net book value at 31 March 202148,307 2,211 108 50,626
CONSOLIDATED 2020
Property
$’000
Motor vehicles
$’000
Equipment
$’000
Total
$’000
Opening balance
Recognised on transition57,814 349 131 58,294
Net book value at 1 April 201957,814 349 131 58,294
Additions139 20 74 233
Depreciation expense(7,715)(169)(45)(7,929)
Impairment(145)--(145)
Foreign exchange impact(88)(1)(1)(90)
Closing net book value at 31 March 202050,005 199 159 50,363
Represented by:
Cost84,778 368 204 85,350
Accumulated depreciation(34,773)(169)(45)(34,987)
Net book value at 31 March 202050,005 199 159 50,363
44
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
Critical estimates and judgements: Right-of-use assets
Lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the Group’s incremental
borrowing rate is used, being the rate that the Group would have to pay to borrow the funds necessary to obtain an asset of similar value
in a similar economic environment with similar terms and conditions.
In determining the lease term the Group includes any periods covered by options to extend where the Group is reasonbly certain to
exercise that option.
Accounting policy
The Group leases mainly relate to buildings which are typically made for fixed periods of 1 to 16 years but may have extension options.
Lease terms are negotiated on an individual basis and contain a wide range of terms and conditions. The lease agreements do not impose
any covenants, but leased assets may not be used as security for borrowing purposes.
Assets and liabilities arising from a lease are initially measured on a present-value basis. Lease liabilities include the net present value of
the following lease payments:
• fixed payments, less any lease incentives receivable; and
• variable lease payments that are based on an index or a rate.
Right-of-use assets are measured at cost comprising the amount of the initial measurement of lease liability and any restoration costs.
The right-of-use asset is depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis.
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in
profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment and small
items of office furniture.
4.3 Intangible Assets
CONSOLIDATED 2021
Customer
relationships
$’000
Goodwill on
acquisitions
$’000
Computer
software
$’000
Total
$’000
Opening balance
Cost12,929 147,846 9,119 169,894
Accumulated amortisation and impairment(10,271)(94,718)(7,406)(112,395)
Net book value at 1 April 20202,658 53,128 1,713 57,499
Additions––1,728 1,728
Disposals––––
Amortisation expense(1,450)–(1,128)(2,578)
Impairment––––
Foreign exchange impact–1,363 39 1,402
Closing net book value at 31 March 20211,208 54,491 2,352 58,051
Represented by:
Cost13,055 149,712 11,021 173,788
Accumulated amortisation and impairment(11,847)(95,221)(8,669)(115,737)
Net book value at 31 March 20211,208 54,491 2,352 58,051
45
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
CONSOLIDATED 2020
Customer
relationships
$’000
Goodwill on
acquisitions
$’000
Computer
software
$’000
Total
$’000
Opening balance
Cost12,962 148,332 8,534 169,828
Accumulated amortisation and impairment(8,854)(8,349)(6,183)(23,386)
Net book value at 1 April 20194,108 139,983 2,351 146,442
Additions––631 631
Disposals––––
Amortisation expense(1,450)–(1,261)(2,711)
Impairment–(86,500)–(86,500)
Foreign exchange impact–(355)(8)(363)
Closing net book value at 31 March 20202,658 53,128 1,713 57,499
Represented by:
Cost12,929 147,846 9,119 169,894
Accumulated amortisation and impairment(10,271)(94,718)(7,406)(112,395)
Net book value at 31 March 20202,658 53,128 1,713 57,499
Critical estimates and judgements: Goodwill
The Group tests intangible assets for impairment to ensure they are not carried at above their recoverable amounts:
• at least annually for goodwill with indefinite lives; and
• where there is an indication that the assets may be impaired (which is assessed at least at each reporting date).
Impairment tests are performed by assessing the recoverable amount of each individual asset or each cash generating unit (CGU). The
recoverable amount is determined as the higher amount calculated under a value-in-use (VIU) or a fair value less costs of disposal (FVLCD)
calculation. Both methods utilise pre-tax cash flow projections based on financial projections approved by the directors.
Impairment tests for goodwill
The Group’s segments have been classified as New Zealand and Australia aligning with the way the business is reviewed. The New Zealand
goodwill balance arose prior to the Group’s Initial Public Offering (IPO) in July 2014.The Australian goodwill arose in August 2016 with the
acquisition of AGG. Goodwill balances are as follows:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
New Zealand30,879 30,879
Australia23,612 22,249
54,491 53,128
Impairment testing for both CGUs was completed using both the VIU and FVLCD methods, with the VIU dicsounted cash flow method
showing the higher recoverable amount.
46
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
Key assumptions in the 31 March 2021 impairment assessment (VIU) calculations (and the equivalent assumptions in the 31 March 2020
calculations) are as follows:
CONSOLIDATEDCONSOLIDATED
20212020
New ZealandAustraliaNew ZealandAustralia
Compound annual revenue growth – 3 years-0.2%7.7%-9.6%5.2%
Long-term growth rate1.3%1.3%1.3%1.3%
Discount rate (post tax, post IFRS 16)8.1%7.4%7.8%6.6%
Cash flow projections
The impairment testing used pre-tax cash flow projections for both CGUs based on financial projections approved by management
covering a three-year period. In forming these projections, management considered the views of several economic forecasters, observable
market data points (including building consents), feedback from customers, analysis of existing forward books of work, anticipated
customer wins and/or losses and other competitive dynamics.
As at 31 March 2020, the New Zealand and Australian CGUs had both begun facing significant market and economic uncertainty as a
result of the COVID-19 pandemic. Given the level of uncertainty regarding the future, the cash flow projections used for the 31 March
2020 impairment assessments were formed on the basis of a probability weighted view of a number of potential future scenarios. As a
consequence of this testing, the Group recognised a goodwill impairment of $86.5 million in respect of the New Zealand CGU at
31 March 2020.
The level of certainty on future prospects has improved year on year with, in particular, the impacts of COVID-19 now better understood.
As a result, management have used a single set of cash flow projections in the 31 March 2021 testing rather than factoring in multiple
scenarios as was done at 31 March 2020.
Despite the uncertainty caused by COVID-19 in the year ended 31 March 2021, a total of 41,038 new homes were consented in New
Zealand, which was an all-time record. The value of non-residential building consents also increased year on year. The New Zealand CGU
achieved stronger earnings and cash flow generation than estimated in the impairment testing performed at 31 March 2020, which
alongside the continuing strength in consenting activity, indicates higher estimates for future profit, capital expenditure and working
capital requirements.
The Australian CGU delivered a stronger financial performance in the year to 31 March 2021 than was anticipated in the impairment
testing performed at 31 March 2020. This was despite the business facing external issues as a result of COVID-19 shutdowns and severe
weather events. The business is performing consistently and is well placed for growth in the coming years as the penetration of double-
glazing increases alongside changing construction codes and consumer preferences.
Long-term growth rate
Cash flows beyond the three-year period are extrapolated using estimated long-term growth rate. The long-term growth rate
assumptions are supported by long-term population growth rates in New Zealand and Australia and the increased use and prevalence of
glass products in the Group’s markets. The long-term growth rates have been left unchanged in the 2021 testing.
Discount rate
The discount rate (post tax) represents the current market assessment of the risks specific to the CGU, taking into account the time
value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The discount rate
calculation is based on the specific circumstances of the CGU and its operating segments and is derived from its weighted average costs
of capital (WACC).
The discount rates used are supported by independent third party expert advice. The discount rates at 31 March 2021 were higher than
the prior year on account of market increases in interest rates (risk-free rates) and the consideration of market-specific risks.
Market capitalisation comparison
The Group compares the carrying amount of net assets with the market capitalisation value at each balance date. The share price at
31 March 2021 was $0.375 equating to a market capitalisation of $69.5 million. This market value excludes any control premium and may
not reflect the value of all of the Group’s net assets. The carrying amount of the Group’s net assets at 31 March 2021 was $83.8 million
($0.45 per share). Management and the Directors have considered the reasons for this difference and concluded all relevant factors had
been allowed for in their VIU and FVLCD models.
47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
Sensitivity to changes in key assumptions
The impairment assessments confirmed that, for the New Zealand and Australian business units, the recoverable amounts exceed carrying
values as at 31 March 2021. Based on current economic conditions and performance of each CGU, no reasonably possible change in a key
assumption used in the determination of the recoverable value of CGUs would result in a material impairment to the Group.
Accounting policy
Goodwill
Goodwill represents the excess of the consideration paid for an acquisition over the fair value of the Group’s share of the net identifiable
assets of the acquired subsidiary at the date of acquisition. Any goodwill arising on acquisitions of subsidiaries is included in intangible
assets. Goodwill acquired in business combinations is not amortised. Instead, goodwill is tested for impairment annually, or more frequently
if events or changes in circumstances indicate that it might be impaired, and is carried at cost less accumulated impairment losses. Gains
and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
The carrying value of goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of
disposal. Any impairment is recognised immediately as an expense and is not subsequently reversed.
For the purposes of impairment testing, goodwill acquired in a business combination is allocated to each group of the CGUs that is
expected to benefit from the synergies of the combination. Each unit to which the goodwill is allocated represents the lowest level within
the entity at which the goodwill is monitored for internal management purposes.
Computer software
Acquired computer software licences are capitalised on the basis of the costs incurred to acquire and bring to use the specific software.
Costs that are directly associated with the production of identifiable and unique software products controlled by the Group are
recognised as intangible assets when management intends to use the software and anticipate it will generate probable future
economic benefits.
Directly attributable costs that are capitalised as part of the software product include the software development employee costs and an
appropriate portion of relevant overheads.
Amortisation of computer software is calculated on a straight-line basis over a useful life of four years.
Contractual customer relationships
Contractual customer relationships acquired in a business combination are recognised at fair value at the acquisition date. The
contractual customer relationships acquired are estimated to have a finite useful life and are carried at cost less accumulated
amortisation. Amortisation is calculated on a straight-line method over the expected life, being 10 years of the customer relationship in
New Zealand.
48
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
5 Debt & Equity
5.1 Interest-bearing liabilities
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Bank borrowings52,175 81,630
Other asset financing3,344
Bank overdraft––
55,519 81,630
Bank borrowings are secured by a first-ranking composite general security deed. The Group’s bank borrowing facilities negotiated on
13 October 2020 comprise a syndicated revolving loan facility of $75 million for a three-year term expiring in October 2023, a $10 million
standby facility that will expire in October 2021 as well as overdraft and bank guarantees totalling $8.25 million. The Group complied with
all covenants throughout the year.
(A) Assets pledged as security
The bank loans are secured under both a General Security Deed and Specific Security Deed which results in registered charges over
assets of the Group. In addition, there are positive and negative pledge undertakings through shares held of various subsidiaries.
(B) Fair value
The carrying value of the Group’s bank borrowings also represents the fair value of the borrowings due to management’s assessment that
the interest rates approximate the market interest rate for a commercial loan of a comparable lending period.
Accounting policy
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised
cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is expensed in the statement of
comprehensive income over the period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least
12 months after the statement of financial position date.
Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities, the availability of funding through an
adequate amount of committed credit facilities and the ability to close-out market positions.
As at 31 March 2021 the Group had cash of $7.5 million. Information in respect of negotiated credit facilities is shown below.
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Committed credit facilities pursuant to syndicated facility93,253 127,724
Drawdown at balance date(56,876)(85,300)
Available credit facilities36,377 42,424
49
EBITDAIBAI:TA BEDBbefoITfAreEoE eobADIoITsTEID
Notes to the Consolidated Financial Statements (continued)
The table below analyses both of the Group’s non-derivative financial liabilities and derivative financial liabilities into relevant maturity
groupings based on the remaining period at the balance sheet date to the contractual maturity date. Derivative financial liabilities are
included in the analysis if their contractual maturities are essential for an understanding of cash flows.
CONSOLIDATED 2021
Less than
1 year
$’000
Between
1 and 2 years
$’000
Between
2 and 5 years
$’000
> 5 years
$’000
Total
$’000
Interest-bearing liabilities and interest owing2,134 1,812 55,036 1,272 60,254
Interest rate swap––1,575 –1,575
Foreign exchange contracts374 –––374
Lease liabilities9,433 8,836 20,770 41,177 80,216
Trade accounts payable17,279 –––17,279
Total at 31 March 202129,220 10,648 77,381 42,449 159,698
CONSOLIDATED 2020
Less than
1 year
$’000
Between
1 and 2 years
$’000
Between
2 and 5 years
$’000
> 5 years
$’000
Total
$’000
Interest-bearing liabilities and interest owing2,402 82,563 ––84,965
Interest rate swap143 –1,986 –2,129
Foreign exchange contracts57 –––57
Lease liabilities8,485 7,837 19,236 45,781 81,339
Trade accounts payable17,354 –––17,354
Total at 31 March 202028,441 90,400 21,222 45,781 185,844
Interest rate risk
The Group’s interest rate risk arises from borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate
risk. During the period, the Group’s borrowings at variable rates were denominated in both New Zealand and Australian dollars. If interest
rates in New Zealand and Australia increased by 10% the impact would be an additional cost of $0.12 million and a subsequent decrease of
$0.12 million if rates decreased by 10%. (In 2020 an interest rate increase of 10% would have resulted in additional costs of $0.13 million
and a subsequent decrease of $0.13 million if rates decreased by 10%.)
The Group adopts a policy of ensuring that its exposure to changes in interest rates on borrowings is on a fixed-rate basis by entering
into interest rate swaps.
50
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
5.2 Lease liabilities
2021
$’000
2020
$’000
Opening lease liabilities recognised at 1 April 59,485 65,759
Additions7,004 233
Disposals(19)–
Interest for the period3,088 3,227
COVID-19 rent relief(367)–
Lease payments made(9,060)(9,634)
Foreign exchange impact470 (100)
Lease liabilities at 31 March 202160,601 59,485
Current lease liabilities6,559 5,552
Non-current lease liabilities54,042 53,933
Total lease liabilities60,601 59,485
Lease liabilities maturity analysis
Minimum lease
payments
$’000
Interest
$’000
Present value
$’000
Within one year9,433 (2,874)6,559
One to five years29,605 (8,800)20,805
Beyond five years41,177 (7,940)33,237
Lease liabilities at 31 March 202180,215 (19,614)60,601
Minimum lease
payments
$’000
Interest
$’000
Present value
$’000
Within one year8,485 (2,933)5,552
One to five years27,073 (9,239)17,834
Beyond five years45,781 (9,682)36,099
Lease liabilities at 31 March 202081,339 (21,854)59,485
During the Alert Level 4 lockdown, the Group negotiated with its landlords to obtain rent relief on various properties. The Group adopted
the NZ IFRS 16 Leases practical expedient in relation to rent concessions, and as such, the relief obtained from these is reflected through
a reduction in lease liabilities with a corresponding expense reduction recognised in the consolidated statement of comprehensive income
of $0.4 million.
51
EBITDAIBAI:TA BEDBbefoITfAreEoE eobADIoITsTEID
Notes to the Consolidated Financial Statements (continued)
5.3 Contributed equity
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Opening balance307,198 306,693
Vesting of employee share purchase scheme–361
Payments received on management incentive plans–144
Closing balance307,198 307,198
On 29 July 2014, Metro Performance Glass received gross proceeds of $244.2 million from the allotment of 143,668,486 ordinary shares at
an issue price of $1.70 per share, offered under the Investment Statement and Prospectus dated 7 July 2014 (amended 15 July 2014) for
the Initial Public Offering (IPO) of ordinary shares in Metro Performance Glass. In addition, 36,646,730 ordinary shares were issued in
exchange for 113,811,147 shares in Metroglass Holdings Limited at an issue price of $1.70 per share. Also, as part of the then long-term
incentive plan, 4,714,784 ordinary shares were issued to management and these vested on 20 July 2015. Payments received on
management incentive plan shares relates to net proceeds received from management under this scheme.
Accounting policy
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or acquiring its own shares are shown in equity as a deduction,
net of tax, from the proceeds.
Dividends
Provision is made for the amount of any dividend declared on or before the end of the financial year but not distributed at balance date.
Dividend distribution to Group shareholders is recognised as a liability in the Group’s financial statements in the period in which the
dividends are declared by the board.
Metro Performance Glass paid no dividends in 2021.
52
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
Capital management
The Group and the parent entity’s objectives when managing capital are to safeguard their ability to continue as a going concern, so that
they can continue to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure
to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, issue new shares or sell assets to reduce debt.
The Group monitors capital on the basis of the gearing ratio and leverage ratio. The Group’s respective ratios at 31 March 2021 were
as follows:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Interest-bearing liabilities55,519 81,630
Less: cash and cash equivalents(7,530)(14,742)
Net debt47,989 66,888
Equity84,047 75,843
Gearing ratio36.3%46.9%
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Interest-bearing liabilities55,519 81,630
Less: cash and cash equivalents(7,530)(14,742)
Net debt47,989 66,888
Profit before interest, tax, depreciation and amortisation
1
28,76533,789
Leverage ratio1.7 : 12.0 : 1
1 Calculated on pre-IFRS 16 basis, excluding significant items as per bank covenant definitions.
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
6 Other
6.1 Income taxation
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Profit before income taxation12,230 (76,341)
Income taxation expense at the Group’s effective tax rate3,397 (21,592)
Tax effect of non-deductible items130 24,436
Prior year adjustment159(324)
Income tax expense3,686 2,520
Represented by:
Current taxation5,231 6,419
Deferred taxation(1,545)(3,899)
3,686 2,520
Imputation credit account
The amount of imputation credits at balance date available for future distributions is $27.0 million at 31 March 2021, ($19.4 million at
31 March 2020).
6.2 Deferred taxation
Consolidated deferred tax assets and liabilities are attributable to the following:
CONSOLIDATED 2021
Assets
$’000
Liabilities
$’000
Net
$’000
Property, plant and equipment–(1,855)(1,855)
Right–of–use assets–(13,701)(13,701)
Inventory and receivables32 –32
Cash flow hedge524 –524
Intangibles–(757)(757)
Lease liabilities16,409 –16,409
Provisions and accruals3,810 –3,810
Tax losses5,779 –5,779
26,554 (16,313)10,241
54
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Notes to the Consolidated Financial Statements (continued)
CONSOLIDATED 2020
Assets
$’000
Liabilities
$’000
Net
$’000
Property, plant and equipment–(1,365)(1,365)
Right-of-use assets–(14,256)(14,256)
Inventory and receivables139 –139
Cash flow hedge145 (79)66
Intangibles–(1,075)(1,075)
Lease liabilities16,807 –16,807
Provisions and accruals2,657 –2,657
Tax losses4,935 –4,935
24,683 (16,775)7,908
Movement in temporary differences during the year:
CONSOLIDATED 2021
Opening
balance
1 April 2020
$’000
Recognised
in opening
retained
earnings
$’000
Recognised
in profit
or loss
$’000
Recognised
in OCI
$’000
Balance
31 Mar 2021
$’000
Property, plant and equipment(1,365)–(434)(56)(1,855)
Right-of-use assets(14,256)–697 (142)(13,701)
Inventory and receivables139 –(116)9 32
Cash flow hedge66 ––458 524
Intangibles(1,075)–338 (20)(757)
Lease liabilities16,807 –(537)139 16,409
Provisions and accruals2,657 –1,056 97 3,810
Tax losses4,935 –541 303 5,779
7,908 –1,545 788 10,241
CONSOLIDATED 2020
Opening
balance
1 April 2019
Recognised
in opening
retained
earnings
$’000
Recognised
in profit
or loss
$’000
Recognised
in OCI
$’000
Balance
31 Mar 2020
$’000
Property, plant and equipment(740)–(630)5 (1,365)
Right-of-use assets–(16,399)2,093 50 (14,256)
Inventory and receivables––139 –139
Cash flow hedge513 ––(447)66
Intangibles(1,207)–132 –(1,075)
Lease liabilities–17,906 (1,053)(46)16,807
Provisions and accruals2,863 –(159)(47)2,657
Tax losses1,582 –3,377 (24)4,935
3,011 1,507 3,899 (509)7,908
55
EBITDAIBAI:TA BEDBbefoITfAreEoE eobADIoITsTEID
Notes to the Consolidated Financial Statements (continued)
Accounting policy
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates
to items recognised in ‘Other comprehensive income’ or directly in equity. In this case, the tax is also recognised in ‘Other comprehensive
income’ or directly in equity, respectively.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the statement of financial
position date.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. However, deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither
accounting nor taxable profit or loss. No deferred tax liability was recognised on initial recognition of goodwill. Deferred income tax is
determined using tax rates (and laws) that have been enacted, or substantively enacted, by the statement of financial position date and
are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised for unused tax losses and deductible temporary differences to the extent that it is probable
that future taxable profit will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current
tax liabilities and when the deferred income tax assets and liabilities relate to income tax levied by the same taxation authority on either
the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
6.3 Group Reserves
Group reorganisation reserve
Upon acquisition of Metroglass Holdings Limited in July 2014, the assets and liabilities acquired were measured at their pre-combination
carrying amounts without fair value uplift. The difference between the consideration transferred and the carrying value of the assets and
liabilities acquired of $170.7 million was recorded in the group reorganisation reserve.
Accounting policy
Where an acquisition occurs through group reorganisation, the identifiable assets and liabilities acquired are measured at their pre-
combination carrying amounts without fair value uplift. No new goodwill is recorded. Any difference between the consideration transferred
and the carrying value of the assets and liabilities acquired is recorded in equity.
Share-based payments reserve
The Group currently has a long-term incentive plan for selected employees. The plan’s participants are members of the Senior Leadership
Team and other selected senior managers. The reserve is used to record the accumulated value of the plan which has been recognised in
the statement of comprehensive income.
The plan is designed to secure those employees’ retention in Metro Performance Glass and to reward performance that underpins the
achievement of Metro Performance Glass’ business strategy and long-term shareholder wealth creation. Participants are offered an
annual award of a specified number of both performance rights and share options in Metro Performance Glass (in accordance with the
plan rules).
The performance rights enable participants to acquire shares in Metro Performance Glass with no consideration payable, subject to
Metro Performance Glass achieving set performance hurdles and meeting certain vesting conditions.
The share options enable participants to acquire shares in Metro Performance Glass at a market-based exercise price, subject to certain
performance hurdles and vesting conditions being met.
In the event that the respective performance hurdles are not met on the vesting date, retesting will be permitted after a further six and
twelve months from the measurement date.
56
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
The following share options and performance share rights (PSR) have been issued and had not lapsed or been exercised at 31 March 2021.
Plan Name
Date
issued
Number
of options
Number
of PSR
Options
exercise
price
Vesting
date
2018 LTI plan25-May-17773,472193,367$1.358-Jun-20
2019 LTI plan24-May-181,193,009374,275$0.897-Jun-21
2020 LTI plan23-May-193,963,4361,486,293$0.456-Jun-22
2021 LTI plan10-Aug-203,036,8241,619,640$0.206-Jul-23
Accounting policy
The long-term incentive plan is an equity-settled share-based payment which provides eligible employees with the opportunity to acquire
shares in the Group. The fair value of shares granted is recognised as an employee benefit expense with a corresponding increase in
equity. The fair value is measured at grant date and recognised over the vesting period. The fair value of the instruments granted under
the plan has been assessed by an independent valuer.
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Share-based payments reserve
Balance at the beginning of the period931 725
Transfer to equity on vesting of employee share purchase scheme–(181)
Movement in share-based payments reserve281 387
Closing balance1,212 931
6.4 Related Party Transactions
Subsidiaries
The Group’s principal subsidiaries at 31 March 2021 are set out below. Unless otherwise stated, they have share capital consisting solely of
ordinary shares that are held directly by the Group, and the proportion of ownership interest held equals the voting rights held by the
Group. The country of incorporation or registration is also their principal place of business.
Name of entityCountry of
incorporation
2021 Interest2020 Interest
Metropolitan Glass & Glazing LimitedNew Zealand100%100%
Metroglass Finance LimitedNew Zealand100%100%
Australian Glass Group Holding Pty LtdAustralia100%100%
Australian Glass Group Finance Pty LtdAustralia100%100%
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Notes to the Consolidated Financial Statements (continued)
Directors
The names of persons who were directors of the company at any time during the financial period are as follows: Peter Griffiths,
Russell Chenu, Willem Roest, Angela Bull, Rhys Jones, Graham Stuart and Mark Eglinton.
Willem Roest retired on 30 June 2020. Mark Eglinton was appointed on 1 April 2020.
Key management and Board of Directors’ compensation
Key management are members of the Executive Team, being direct reports of the CEO. The compensation paid to key management for
employee service is shown below:
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Salaries and other short-term employee benefits2,747 2,960
Management incentive
1
–522
Termination payments211–
Share-based payments167 137
3,125 3,619
1 Relates to amounts paid pursuant to prior year financial and operating performance.
Board of Directors’ compensation
CONSOLIDATEDCONSOLIDATED
2021
$’000
2020
$’000
Directors’ fees628612
628 612
6.5 Contingencies
At 31 March 2021 the Group had no contingent liabilities or assets.
58
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Notes to the Consolidated Financial Statements (continued)
6.6 Commitments
At 31 March 2021 the Group had no commitments.
6.7 Restrospective Restatement of Error
During the year ended 31 March 2021, the Group identified an integration error between the payroll time and attendance system and the
accounting records, which resulted in the understatement of the annual leave provision by $1.39 million at 31 March 2020. The integration
issue began from the implementation of a new payroll system in September 2019. The integration issue did not impact the entitlement of
employees, nor has it resulted in any errors in payments made to employees over the period. The financial statements have been restated
to correct this error. The impact of the restatement on the consolidated financial statements at 31 March 2020 is set out in the
tables below:
Impact on the statement of comprehensive income for the year ended 31 March 2020
Consolidated
2020 Annual
Report
$’000
Adjustment
$’000
Consolidated
Restated
$’000
Cost of sales(139,037)(640)(139,677)
Gross profit115,871 (640)115,231
Distribution and glazing-related expenses(45,350)(718)(46,068)
Selling and marketing expenses(14,370)(25)(14,395)
Administration expenses(33,571)(2)(33,573)
Profit before significant items, interest and tax23,162 (1,385)21,777
Income taxation expense(2,908)388 (2,520)
Loss for the year(77,864)(997)(78,861)
Earnings per shareCentsCentsCents
Basic and diluted earnings per share(42.0)(0.5)(42.5)
Impact on the Statement of Financial Position at 31 March 2020
Consolidated
2020 Annual
Report
$’000
Adjustment
$’000
Consolidated
Restated
$’000
Deferred tax7,520 388 7,908
Total assets258,032 388 258,420
Trade and other payables23,216 1,385 24,601
Total liabilities181,192 1,385 182,577
Retained earnings(60,472)(997)(61,469)
Total equity76,840 (997)75,843
59
6. Com .m iCmt.6o.ens7 CsmRn676tn7emo 7 CrC6 o
Notes to the Consolidated Financial Statements (continued)
6.8 Sale & Leaseback
The Group entered into two sale and leaseback agreements relating to the New Zealand vehicle fleet during the year ended 31 March 2021.
The Group has determined that a number of these leases do not satisfy the requirements of NZ IFRS 15 to be accounted for as a sale of
the asset and has recognised a financial liability equal to the cash received. Where the transfer of control under NZ IFRS 15 has been
satisfied, the vehicle has been disposed of with the gain recognised as a significant item in the consolidated statement of comprehensive
income. Where the subsequent lease has a lease term of 12 months or less, the lease payments are recognised on a straight-line basis as
an expense in profit or loss, otherwise a right-of-use asset and a corresponding lease liability have been recognised.
The impact of the sale and leaseback transaction on the consolidated financial statements is set out in the tables below.
Impact on the statement of comprehensive income for the year ended 31 March 2021
Total
$’000
Depreciation262
Short-term and low-value leases95
Interest on leases50
Interest on other financing130
Significant item - gain on disposal(951)
Total(414)
Impact on the statement of financial position at 31 March 2021
Total
$’000
Property, plant and equipment(1,964)
Right-of-use assets2,056
Lease liabilities(2,080)
Interest-bearing liabilities(2,640)
Total(4,628)
Impact on the statement of cash flows for the year ended 31 March 2021
TOTAL
$’000
Payments to suppliers and employees(95)
Interest paid on leases(50)
Proceeds from sale of property, plant and equipment2,915
Lease liabilities payments(238)
Drawdown of other financing2,510
Total5,042
60
6. Comi.CtoC6ens.m7RerrmRp6p .cmennveRmC.ioC mafaEm
PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, pwc.co.nz
Independent auditor’s report
To the Shareholders of Metro Performance Glass Limited
Our opinion
In our opinion, the accompanying consolidated financial statements of Metro Performance Glass
Limited (the Company), including its subsidiaries (the Group), present fairly, in all material respects,
the financial position of the Group as at 31 March 2021, its financial performance and its cash flows for
the year then ended in accordance with New Zealand Equivalents to International Financial Reporting
Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).
What we have audited
The Group's consolidated financial statements comprise:
● the consolidated statement of financial position as at 31 March 2021;
● the consolidated statement of comprehensive income for the year then ended;
● the consolidated statement of changes in equity for the year then ended;
● the consolidated statement of cash flows for the year then ended; and
● the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the consolidated financial statements
section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) (PES 1) issued by the New Zealand Auditing and Assurance Standards
Board and the International Code of Ethics for Professional Accountants (including International
Independence Standards) issued by the International Ethics Standards Board for Accountants (IESBA
Code), and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Our firm carries out other services for the Group in the area of an assurance report relating to the
Group’s covenant compliance certificate. The provision of this other service has not impaired our
independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the consolidated financial statements of the current year. These matters were addressed
in the context of our audit of the consolidated financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
61
INDEPENDENT AUDITOR’S REPORT
PwC
Description of the key audit matter How our audit addressed the key audit matter
Goodwill impairment tests
As at 31 March 2021 the carrying amount
of the Group’s goodwill amounted to $54.5
million as disclosed in note 4.3, which
related to the New Zealand ($30.9 million)
and Australia ($23.6 million) cash
generating units (CGUs).
The New Zealand and Australia goodwill
balances had each been partially impaired
at 31 March 2020 and 31 March 2019
respectively.
Management has based its impairment
assessment for each CGU on a value in
use basis, using a discounted cash flow
model based on forecast future
performance to determine the recoverable
amount.
The key assumptions in the impairment
assessments are the revenue growth rates
over the next three years, the discount
rates and the long term growth rates.
Management performed a comparison of
the Group’s net assets to the market
capitalisation of the Company and
prepared an analysis and explanation of
the difference. Management considered
the reasons for this difference in finalising
their assessment of the recoverable
amounts of the CGUs of the Group. No
impairment was identified.
The impairment testing of goodwill is
considered a key audit matter due to the
materiality of the goodwill balances, the
gap between the Group’s net assets and
its market capitalisation, and the significant
level of management estimation and
judgement applied in determining key
assumptions used in the impairment
assessment.
Our audit focused on assessing and challenging the
key assumptions used by management in the two
impairment assessments. Our procedures included:
● Evaluating the appropriateness of the
identification of CGUs.
● Considering whether the valuation methodologies
applied were appropriate, including the change
from a probability-weighted approach for the 31
March 2020 impairment tests to a single forecast
scenario for the current year’s assessments.
● Agreeing the cash flows included in
management’s impairment models to the board
approved plans.
● Assessing the Group’s forecasting accuracy by
comparing historical forecasts to actual results
and considering the impact on cash flow
forecasts.
● Evaluating key cash flow assumptions by
obtaining from management a detailed analysis
of the strategic direction of the business and
market dynamics and comparing these against
third party forecasts for the industry and current
trends.
● Engaging our valuation expert to assist us with:
- assessing whether the discount rates and
terminal growth rates used by management
are reasonable in the context of the
forecasts; and
- considering management’s paper comparing
the net assets and the market capitalisation
of the Company. This analysis was
completed as part of our assessment of
indicators of impairment.
● Testing the accuracy of the calculations in
management’s impairment models, and checking
that the carrying amount for each of the CGU’s
net assets was correctly included in the
impairment assessment.
● Performed sensitivity analyses for the effect of
reasonably possible changes in key assumptions
on the impairment assessment.
● Considering the appropriateness of disclosures in
the consolidated financial statements.
We had no matters to report as a result of our
procedures.
62
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
PwC
Sale and leaseback transactions
As disclosed in note 6.8 of the
consolidated financial statements, the
Group entered into two sale and leaseback
agreements relating to its vehicle fleet
during the year.
The transactions resulted in different
accounting treatments for individual
vehicles:
● where control of the vehicles was
transferred to the lease companies
the transactions were treated as sales
and subsequent leases
● where control was not transferred the
transactions were recognised as
merely new financing equal to the
cash received.
For vehicles that were sold and leased
back the Group calculated a gain on sale
of $951,000 by applying the market value
requirements of the relevant accounting
standards to validate the appropriateness
of the amounts agreed in the sales and
leaseback transactions.
This was determined to be a key audit
matter due to the financial significance and
complexity of the transactions, involving
management judgement in determining
whether control was transferred and
therefore the accounting treatment in
relation to each vehicle, and calculating
the gain on sale in accordance with the
accounting standards.
Our audit of the sale and leaseback transactions
focused on the judgements used in determining the
accounting treatment for the transaction and on
testing the gain recognised on the sales.
Our procedures included:
● Gaining an understanding of the terms and
economic substance of the sale and leaseback
arrangements through reviewing board minutes,
discussions with management and reading the
relevant agreements.
● Considering management's view on whether
control was transferred in line with the
requirements of the relevant accounting
standard.
● Testing the calculation of the gain on sale with
specific reference to the considerations in the
relevant accounting standards, including:
- Evaluating the selling price against the
market value of the underlying assets at the
date of sale.
- Assessing the reasonableness of the agreed
lease expense compared to market leases
for similar vehicles.
● Considering the appropriateness of disclosures in
the consolidated financial statements.
We had no matters to report as a result of our
procedures.
63
INDEPENDENT AUDITOR’S REPORT
PwC
Our audit approach
Overview
Overall group materiality: $696,000, which represents approximately 5% of
weighted average profit/loss before income taxation over the past three years,
adjusted to exclude the impairment of intangible assets, restructuring expenses
and the gain on the sale and leaseback of vehicles that occurred during this
three year period. A higher weighting was applied to the current year.
We chose to use a weighted average over the last three years’ profit/loss before
income taxation and to adjust it as described above because, in our view, it
provides a more stable measure of the Group’s performance by moderating the
impacts of the COVID-19 pandemic in the current year and of other significant
and irregular expenses and gains.
Following our assessment of the risk of material misstatement, we performed:
● full scope audits on the Group’s two trading entities
● substantive audit procedures on selected significant balances in the
remaining non-trading entities and on consolidation entries, and
● analytical review procedures on all the remaining non-trading entities.
As reported above, we have two key audit matters, being:
● Goodwill impairment tests
● Sale and leaseback transactions.
As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the consolidated financial statements. In particular, we considered where
management made subjective judgements; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all
of our audits, we also addressed the risk of management override of internal controls, including among
other matters, consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the consolidated financial statements are free from material
misstatement. Misstatements may arise due to fraud or error. They are considered material if,
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the consolidated financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the consolidated financial statements as a whole as set out
above. These, together with qualitative considerations, helped us to determine the scope of our audit,
the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in aggregate, on the consolidated financial statements as a whole.
How we tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the consolidated financial statements as a whole, taking into account the structure of the Group,
the accounting processes and controls, and the industry in which the Group operates.
The materiality levels applied in the full scope audits of the New Zealand and Australian businesses
were calculated by reference to a portion of Group materiality appropriate to the relative scale of the
business concerned.
64
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
PwC
Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual Report, but does not include the consolidated financial statements
and our auditor's report thereon.
Our opinion on the consolidated financial statements does not cover the other information and we do
not express any form of audit opinion or assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the
other information and, in doing so, consider whether the other information is materially inconsistent
with the consolidated financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated. If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in
this regard.
Responsibilities of the Directors for the consolidated financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal
control as the Directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the Directors either intend to liquidate
the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements, as a whole, are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located at the External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
65
INDEPENDENT AUDITOR’S REPORT
PwC
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s Shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Troy Florence.
For and on behalf of:
Chartered Accountants
21 May 2021
Auckland
66
EBITDA:BT DTEbefBAorbssAriEiIBgAbeenbrATB:DTIAcactA
Corporate
Governance
& Statutory
Information
67
Corporate Governance
Metro Performance Glass’ (Metroglass, the company) Board of Directors and Senior Leadership Team (SLT)
recognise the importance of sound corporate governance and consider it core to ensuring the creation,
protection and enhancement of shareholder value. Together, the board and SLT are committed to making
sure that the company applies and adheres to practices and principles that ensure good governance and
maintain the highest ethical standards to protect the interests of shareholders and all stakeholders.
Metroglass’ corporate governance
framework clearly sets out how the board
is accountable to the owners of the
company and how it delegates
responsibilities to the Chief Executive
Officer (CEO) and the SLT. This framework
has been guided by the recommendations
set out in the NZX Corporate Governance
Code (the NZX Code) and the requirements
set out in the NZX Main Board
Listing Rules.
The information in this section is current
as at 21 May 2021 and has been approved
by the board. Metroglass considers that,
during the year to 31 March 2021
(reporting period), the company materially
complied with the NZX Code.
Metroglass’ shares are also listed on the
Australian Securities Exchange (ASX) with
ASX Foreign Exempt Listing status. Given
this status, the ASX requires the company
to comply with the NZX Main Board Listing
Rules and confirm its adherence to these
rules annually, and to comply with a specific
subset of the ASX Listing Rules.
This corporate governance statement
reflects a summary of the company’s
corporate governance framework, policies
and procedures and how they comply with
the NZX Code. The full corporate
governance framework has been approved
by the board and is available in the Investor
Centre section of the company’s website
at www.metroglass.co.nz/investorcentre/
governance/and includes:
1. Constitution
2. Code of Ethics
3. Board Charter
4. Audit and Risk Committee Charter
5. People and Culture Committee Charter
6. Securities Trading Policy
7. Market Disclosure Policy
8. Diversity and Inclusion Policy
9. Safety and Wellbeing Policy.
NZX Code: Key Principles
This section sets out Metroglass’
corporate governance policies, practices
and processes by reference to the NZX
Code’s eight key principles and supporting
recommendations.
Principle 1: Code of Ethical Behaviour
“Directors should set high standards of
ethical behaviour, model this behaviour,
and hold management accountable for
these standards being followed
throughout the organisation.”
Code of Ethics
Metroglass has a Code of Ethics that
establishes a framework of standards by
which the directors, employees,
contractors and advisors of Metroglass
are expected to carry out their
responsibilities. It is not an exhaustive list
of acceptable behaviour; rather it
facilitates decision-making that is
consistent with Metroglass’ values,
business goals and legal and policy
obligations. It requires Metroglass’
employees to:
• Act honestly and with personal integrity
in all actions
• Undertake proper receipt and use of
corporate information, assets
and property
• Adhere to procedures around
confidentiality, conflicts of interest, gift
giving, and whistleblowing
• Comply with all law and
Metroglass policies.
The Code of Ethics also imposes a number
of obligations on directors, including
requirements that they give proper
attention to the matters before them; be
up to date on their regulatory, legal,
fiduciary and ethical obligations; undertake
training; manage breaches of the Code of
Ethics; and act honestly and in the best
interests of the issuer, shareholders and
stakeholders and as required by law.
Metroglass monitors compliance with the
Code of Ethics through its management
processes as well as through the
whistleblowing procedures set out in the
Code of Ethics and separate Whistleblower
Protection Policy. The Code of Ethics was
approved by the board in July 2017.
Securities Trading Policy
The company’s Securities Trading Policy
governs trading in the company’s shares
and any associated financial products
(during the reporting period these were
Metroglass’ NZX- and ASX-listed shares).
The policy applies to all directors,
employees and contractors of Metroglass
and its subsidiaries (“Metroglass
Personnel”). The policy is a critical part of
ensuring all Metroglass Personnel are
aware of their related obligations and legal
requirements and takes into account the
insider trading prohibitions in the Financial
Markets Conduct Act 2013 (NZ) and the
Corporations Act 2001 (Australia), and the
company’s obligations under the NZX
Corporate Governance Code.
The policy also sets out a set of more
stringent rules which apply to Directors
and certain employees of Metroglass when
dealing in Metroglass Securities
(“Restricted Persons”). These additional
rules include the following:
Metro Performance Glass Limited: FY21 Corporate Governance Statement
68
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Corporate Governance (continued)
• Trading in Metroglass securities is
prohibited during the “blackout” periods
set out in the policy (these periods occur
prior to the release of the company’s
half-year and full-year financial result
releases to the market)
• Prior consent must be obtained before
trading in Metroglass securities. This
consent requires confirmation that no
material information is held
• Providing confirmation following the
completion of any trading in
Metroglass securities.
The policy is reviewed at least every
two years and was last reviewed by the
board on 26 September 2019.
Principle 2: Board Composition
and Performance
“To ensure an effective board, there
should be a balance of independence,
skills, knowledge, experience and
perspectives.”
The board has ultimate responsibility for
the strategic direction of Metroglass and
for overseeing Metroglass’ management
for the benefit of its shareholders.
Metroglass’ constitution provides for a
minimum of four directors and, subject to
this limitation, the number of directors to
hold office shall be fixed from time to time
by the board. At least two directors must
be ordinarily residents of New Zealand and
at least two must be independent
directors. The Chair of the board cannot
be the CEO or the Chair of the Audit and
Risk Committee.
The directors bring a wide range of skills to
the board including expertise in corporate
strategy, national and international
business and financial management, sales,
marketing, mergers and acquisitions, legal,
capital markets, industry experience and
corporate governance. As at 21 May 2021,
the board comprised six independent
directors. Director profiles and length
of service are detailed on pages 16 and 17
of this report.
Board Charter
The board operates under a written
Charter, which describes the board’s
authority, duties, responsibilities,
composition and framework for operation.
This Charter also affirms that the board, in
performing its responsibilities, should act
at all times in a manner designed to create
and build sustainable value for
shareholders and in accordance with the
duties and obligations imposed on the
board by Metroglass’ constitution and by
law. The Charter is reviewed at least every
two years and was last reviewed by the
board on 1 April 2021.
Management of Metroglass on a day-to-
day basis is undertaken by the CEO and
senior managers through a set of
delegated authorities that clearly define
the CEO and senior managers’
responsibilities and those retained by
the board.
Metroglass’ board and CEO delegated
authority policies are reviewed at least
annually and were last reviewed by the
board on 16 December 2020. The board
meets its responsibilities by receiving
reports and plans from management and
through its annual work programme. The
board uses committees to address issues
that require detailed consideration.
Committee work is undertaken by
directors; however, the board retains
ultimate responsibility for the functions of
its committees and determines their
responsibilities.
Director Independence
Directors are considered to be
independent if they are non-executive and
do not have an interest or relationship that
could or could be perceived to
unreasonably influence their decisions
relating to the company or interfere with
their ability to act in the company’s best
interests. An individual being appointed as
an independent director must be
independent according to NZX definitions
and not have any disqualifying relationships
as defined in the board Charter.
The board will review any determination it
makes as to a director’s independence on
becoming aware of any information that
may have an impact on the independence
of the director. For this purpose, directors
are required to ensure that they
immediately advise the board of any
relevant new or changed relationships to
enable the board to consider and
determine the materiality of these
relationships.
As at 21 May 2021, all six directors are
considered by the board to be independent
directors in accordance with the NZX Main
Board Listing Rules. Information in respect
of each director’s relevant interests are
detailed on pages 85 – 87 of this report.
Metroglass’ directors are not formally
required to own Metroglass shares but
are encouraged to do so.
Director Training
The company encourages directors to
continue to develop their knowledge and
skills as a director. With the prior approval
from the Chair, directors may attend
appropriate courses or seminars for
continuing education at the company’s cost.
69
CORPORATE GOVERNANCE
Corporate Governance (continued)
Nomination and Appointment of Directors
The provisions regarding the election and
retirement of directors are contained in
the Metroglass constitution. Board
succession is the responsibility of the
People and Culture Committee, on behalf
of the board.
Metroglass strives to ensure that the
company has the right mix of skills and
experience it requires to enable it to
achieve its strategic aims in a prudent and
responsible manner. The board will review
its composition from time to time and will
identify and evaluate suitable individuals
for appointment as a director as and when
an appointment is to be made. In evaluating
a candidate for appointment as a director,
the board will consider criteria including
the skill sets as being required at the time
as well as the individual’s experience and
professional qualifications.
In considering a prospective director, the
board also assesses the prospective board
member’s ability to exercise sound
business judgment, their integrity and
moral reputation, any potential conflicts of
interest or legal impediments to serving as
a director, and their willingness and
availability to commit the time required to
serve as an effective director of the
company. The company is assisted in
arriving at these judgments with external
advice and a set of comprehensive
background checks.
To support the board in its deliberations,
the directors consider a skills matrix that
sets out the mix of skills and diversity of
the directors and evaluates whether the
collective skills and experience of the
directors meet Metroglass’ requirements
both now and into the future.
New directors provide the company with a
written consent to act as a director and
receive a formal Letter of Appointment
that sets out the Terms and Conditions of
Appointment and Remuneration Schedule.
It also sets out the expectations of the
company, the director’s duties,
responsibilities and powers, insurance and
indemnity arrangements, and rights of
access to information.
All new board members are also provided
with an extensive briefing on the company
and industry-related matters within a
thorough induction process.
Selection of Chair
The Metroglass Constitution provides that
the directors may elect a chairperson of
the company and also determine the period
for which the chairperson is to hold office.
Peter Griffiths is an independent director
and is currently the appointed chairperson.
Retirement and Re-election
The company’s Constitution and NZX Main
Board Listing Rules require a newly
appointed director to stand for election at
the next Annual Shareholders’ Meeting
(ASM). Mark Eglinton and Graham Stuart,
both appointed by the board after the
2019 ASM, were elected as directors of
Metro Performance Glass Limited at the
company’s ASM on 21 August 2020.
Directors’ skills matrix as at 31 March 2021
Strategic board skillsNumber of
directors
with high and
moderate
capabilities
Area of
future
learning or
potential
appointment
Building products and manufacturing
Australian market knowledge
Safety
Commercial/risk – former CEO
Financial expert
Strategic investment banking
B2B marketing and customer insight
People and culture
Governance
Diversity (gender, age, ethnicity etc.)
Key
High capability Moderate capability
70
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Corporate Governance (continued)
How is our workforce made up?
*
Gender (March 2020)
Ethnicity (March 2020)
Age (April 2021)
* Workforce diversity data sourced from staff surveys
Prefer not to
say; other: 3%
Female: 15%
Male: 82%
14%
43%
10%10%
11%11%
Asian
(including
Indian)
AustralianMāoriNZ
European
Pacific
Islander
Other
6%
24%
27%27%
13%
2%
16-2425-3435-4445-5455-6565+
The company believes that an ability to attract and retain a diverse and inclusive workforce broadens the recruitment pool of high-calibre
candidates, enhances innovation and improves business performance. A copy of the company’s Diversity and Inclusion Policy is available in
the Corporate Governance section of the company’s website.
As at 31 March 2021 (and 31 March 2020 for the prior comparative period), the mix of gender among the company’s board and SLT were:
31 March 2021Female MaleTotal% Female
Board 15617%
Senior Leadership Team371030%
31 March 2020Female MaleTotal% Female
Board 15617%
Senior Leadership Team35838%
Metroglass is committed to providing an inclusive and diverse environment throughout the company. The company’s current diversity and
inclusion objectives are:
• Ensure that Metroglass’ workforce reflects the diversity of its stakeholder community
• Increase the understanding and acceptance of difference
• Maintain fair and consistent reward and recognition
• Ensure female candidates are identified for all board and senior management vacancies.
Board, Director and Committee
Evaluation
In accordance with the board and
committee charters, the board annually
reviews its performance, policies and
practices. It also reviews annually the
performance of each director and board
committee. These reviews are carried out
both formally and informally.
The last full board performance review was
completed across April and May 2021 with
the assistance of governance services firm
Propero Consulting. The Audit and Risk
Committee was last reviewed in February
2021 and the People and Culture
Committee was last reviewed in June 2020.
Diversity and Inclusion
Metroglass and its board believe that an
equal opportunity workplace in which
differences in gender, age, ethnicity,
nationality, religion, sexual orientation,
physical ability, marital status, experience
and perspective are well represented,
results in a competitive advantage and
helps the company to better connect with
its diverse set of customers and
other stakeholders.
71
CORPORATE GOVERNANCE
Corporate Governance (continued)
In 2020 the board approved three strategic initiatives to advance the company’s diversity objectives in the 2021 financial year. The table
below details these initiatives and Metroglass’ progress against them.
INITIATIVE PROGRESS MADE
1. Develop a workplace
flexibility policy
COVID-19 provided the company with a unique opportunity to develop and test its flexible working
or working from home, offering tools and guidelines. The vast majority of non-factory or glazing
staff were able to successfully work remotely for an extended period early in the financial year,
and during subsequent lockdowns in Auckland.
The company is currently finalising a formal Workplace Flexibility Policy, taking into account the
key learnings from 2020 as well as feedback from staff and other stakeholders.
2. Continue to focus on increasing
the number of females we have
across all levels of the business
13% of the board and senior management roles recruited for in the past financial year had a
successful female candidate (2020: 13%) and 38% had at least one short-listed female candidate
who was interviewed (2020: 38%). Turnover in senior roles was low over this period, with only
eight senior role changes across the group in FY21.
3. Understand our current gender
pay parity
An internal pay parity audit was completed during the year. This audit highlighted no major
disparities, however a few outliers will be addressed through upcoming remuneration reviews.
The company’s planned initiatives for the 2022 financial year are to:
1. Conduct diversity and inclusion training for all hiring managers to ensure our recruitment process is inclusive and helps us to attract a
diverse range of talent
2. Take at least 50% of our senior managers through unconscious bias training.
Principle 3: Board Committees
“The board should use committees where this will enhance its effectiveness in key areas, while still retaining board responsibility.”
In the year to 31 March 2021, the board had two standing committees, being the Audit and Risk Committee and People and
Culture Committee.
Board and Committee Composition and Attendance 12 Months to 31 March 2021
Director
Board meetings
attended
Audit and Risk
Committee meetings
attended
People and Culture
Committee meetings
attendedAppointed/Resigned
Meetings held17124
Sitting Directors
Peter Griffiths17/17 (c)4/4Appointed: 02/09/16
Angela Bull16/174/4 (c)Appointed: 05/05/17
Russell Chenu15/1712/12Appointed: 05/07/14
Mark Eglinton16/164/4Appointed: 01/04/20
Rhys Jones17/174/4Appointed: 01/04/18
Graham Stuart16/1712/12 (c)Appointed: 01/12/19
Past Directors
Willem (Bill) Roest9/98/8Appointed: 05/07/14
Resigned: 30/06/20
(c)
indicates Chair.
The board periodically reviews the need for additional committees. Each committee operates under charters approved by the board, and
any recommendation that committee members make are directed to the board. They do not make decisions on behalf of the company in
their own right.
The board’s committees and their members as at 21 May 2021 were:
• Audit and Risk Committee: Graham Stuart (Chair), Russell Chenu and Peter Griffiths
• People and Culture Committee: Angela Bull (Chair), Mark Eglington and Rhys Jones.
72
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Corporate Governance (continued)
Audit and Risk Committee
The Audit and Risk Committee is
responsible for overseeing the risk
management framework (including treasury
and financing policies), treasury, insurance,
accounting and audit activities of
Metroglass. It reviews the adequacy and
effectiveness of internal controls, meets
with and reviews the performance of
external auditors, oversees internal audit
matters, reviews the consolidated financial
statements and makes recommendations
on financial and accounting policies.
Members of the Audit and Risk Committee
are appointed by the board and comprise a
minimum of three members who are each
non-executive directors of Metroglass. A
majority of members must be independent
directors and at least one director must
have an accounting or financial background.
Employees of Metroglass only attend
meetings of the Audit and Risk Committee
at the invitation of the committee. The
Audit and Risk Committee Charter is
reviewed at least every two years and
was last reviewed by the board on
20 November 2020.
People and Culture Committee
The People and Culture Committee’s
mandate is to assist the board in ensuring
the elements of people, organisation and
culture support the company’s strategy
and business plan.
The committee achieves its goals by
reviewing and considering: the capability of
the organisation at senior levels and in any
identified key roles; the remuneration
strategy required to secure the desired
level of organisational capability; the
nominations process for the appointment
and succession planning of the CEO and
the board; and company policies that relate
to people, including oversight of diversity
and inclusion.
The People and Culture Committee is
comprised of at least two, and not more
than four, independent directors.
Employees of Metroglass only attend
meetings at the invitation of the
committee. The People and Culture
Committee Charter is reviewed at least
every two years and was last approved by
the board on 1 April 2021.
Takeover Protocol
Metroglass has adopted a Takeover
Response Policy to assist in guiding the
board and management in the event that
the company receives an offer or an
approach by a potential acquirer for a
controlling stake in Metroglass. This policy
is reviewed at least every three years and
was last approved by the board on
16 December 2020.
Principle 4: Reporting and Disclosure
“The board should demand integrity in
financial and non-financial reporting, and
in the timeliness and balance of
corporate disclosures.”
Metroglass is committed to providing
financial reporting that is balanced, clear
and objective and informs shareholders
(both current and prospective) and market
participants of all information that might
have a material effect on the price of its
traded financial products.
The quality, integrity and timeliness of
external reporting and the company’s
compliance with the disclosure and
reporting obligations imposed under the
Listing Rules of NZX, ASX, the Companies
Act and other relevant legislation are
overseen by the Audit and Risk Committee.
The company’s full-year statements, which
have been prepared in accordance with the
relevant financial standards, are set out
from pages 22 to 60 of this Annual Report.
Market Disclosure Policy
The board has adopted a Market
Disclosure Policy, available in the Corporate
Governance section of the company’s
website, which sets out how the company
will comply with its disclosure and
reporting obligations.
Metroglass is committed to ensuring the
timely disclosure of material information
about the Metroglass Group and to making
sure that the company complies with NZX
Main Board Listing Rules. The Board of
Directors is ultimately responsible for
ensuring Metroglass complies with the
Market Disclosure Policy and continuous
disclosure obligations. The board has
established a Disclosure Committee to
achieve this. The board also considers at
each board meeting whether any
information discussed at the meeting
requires disclosure.
The policy is reviewed at least every two
years and was last reviewed by the board on
22 May 2019.
Charters and Policies
The key corporate governance documents
referred to in this section, including policies
and charters, are available in the Investor
Centre section of the company’s website
at: www.metroglass.co.nz/investor-centre/
governance/.
Sustainability and Non-Financial
Reporting
Metroglass provides non-financial
disclosures on matters including strategic
and operational priorities for the year, risk
management, safety and wellbeing, and
diversity and inclusion. At this time, the
company does not report under a
recognised environmental, social and
governance framework but aims to provide
non-financial information that would be
useful to its stakeholders.
This year, Metroglass actively engaged with
its key stakeholders to better understand
what matters most to them. With support
from our partner thinkstep-anz, we
identified and ranked the issues
stakeholders regard as material for our
business using a combination of interviews,
workshops and surveys. The engagement
process identified a long list of topics
which were validated and aggregated
through engagement with key internal
stakeholders and against the feedback
received from external stakeholders.
The method of determining material topics
for reporting followed the Global Reporting
Initiatives (GRI) 101 Standard, including the
principles of materiality and stakeholder
inclusivity. The stakeholder set represented
a wide range of diverse interests and
included staff, customers, industry bodies,
regulators and shareholders, across both
New Zealand and Australia.
73
CORPORATE GOVERNANCE
Corporate Governance (continued)
Metroglass’ inaugural materiality matrix (completed in April 2021)
Metroglass 2021 Materiality Matrix
45678910
4
5
6
7
8
9
10
Business impact (business impact workshop)
Stakeholder importance (stakeholder survey data)
Product
stewardship
Community
Emissions
Collaboration
Product data
Waste
Strategy and
disclosure
Internal leadership
Compliance and
regulation
Profitability
Culture
and values
Relationship
management
Operational
excellence
Employees
Customer
experience
Product
innovation
Products
and price
Marketing
Health, safety
and wellbeing
Sector leadership
Supply chain
Overall, 21 material topics were assessed
and included in Metroglass’ materiality
matrix for 2021. Metroglass’ materiality
matrix follows a common format in which
the significant majority of topics are
assigned a score above 6 on both axes. This
is typical and underscores the fact that
while some topics are more important
than others, ultimately all topics on a
materiality matrix have an inherent level
of significance.
In addition, Metroglass’ materiality matrix
illustrates a clear trendline from the
bottom left of the matrix through to the
top right. This indicates an overall positive
correlation between stakeholder
importance and business impact for the
identified topics.
This is encouraging as it suggests that the
topics important to stakeholders may have
a proportionate impact on the business
and vice versa. Internationally, many
materiality matrices follow a
similar pattern.
Next steps
The results of this materiality assessment
will be used as impetus to further design
and refine Metroglass’ sustainability
journey by complementing existing
initiatives which are already underway.
Metroglass intends to develop and report
on a suite of measurable key performance
indicators on the most material topics.
Where there are none and Metroglass
considers it is a topic that it is able to
influence irrespective of their position on
the matrix, Metroglass plans to develop
indicators.
Developing specific targets and key
performance indicators within the
high-priority areas will provide a
transparent future commitment to
environmental, social and economic
progress.
74
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Corporate Governance (continued)
Principle 5: Remuneration
“The remuneration of directors and
executives should be transparent, fair
and reasonable.”
The Metroglass board believes its
practices ensure fair and reasonable
remuneration. The company’s remuneration
policies are aimed at ensuring that the
remuneration of directors and all staff
properly reflects each person’s
accountabilities, duties, responsibilities and
their level of performance. They are also
aimed at making sure that remuneration is
competitive in attracting, motivating and
retaining staff of the highest calibre.
The board’s People and Culture Committee
has a formal Charter. Its membership and
role are set out under Principle 3 above.
The company’s remuneration policies and
disclosures are covered in the
Remuneration section on pages 78 to 81 of
this Annual Report.
Principle 6: Risk Management
“Directors should have a sound
understanding of the material risks faced
by the issuer and how to manage them.
The board should regularly verify that the
issuer has appropriate processes that
identify and manage potential and
material risks.”
The identification and effective
management of the company’s risks is a
priority of the board. It is responsible for:
• Identifying the principal risks of
Metroglass’ business
• Reviewing and ratifying Metroglass’
systems of internal compliance and
control, risk management and legal
compliance, to determine the integrity
and effectiveness of those systems
• Approving and monitoring internal and
external financial and other reporting,
including reporting to shareholders, the
NZX, the ASX and other stakeholders.
The board has established an Audit and
Risk Committee responsible for ensuring
that effective risk management systems
and internal controls are in place, including
reviewing material risk exposures and the
steps management has taken to monitor,
control and report such exposures.
The board has made the CEO accountable
for all operational and compliance risks
across the group, including safety and
wellbeing (see below). The Chief Financial
Officer (CFO) has management
accountability for the implementation of
the risk framework across all the
company’s businesses.
As part of its risk management framework,
Metroglass continually assesses risks
against all relevant areas of material
business risk. Metroglass’ main risks and
mitigation plans are reviewed every six
months by the Audit and Risk Committee.
Safety and Wellbeing
The safety and wellbeing of the company’s
staff, contractors and customers is
fundamental to Metroglass’ pursuit of
leadership in glass solutions. Accordingly, all
regular board meetings and risk reviews
specifically look at safety and wellbeing
matters. The company maintains a safety
and wellbeing risk register for both
New Zealand and Australia, which is
reviewed by the board at least annually.
In view of the customer, manufacturing and
glazing focus of the business, and the
nature of the company’s products, key risks
are strains, sprains and lacerations
resulting from the manual aspect of its
work processes. Metroglass mitigates
these risks by automating activities or
providing mechanical assistance where
possible, mandating the use of appropriate
personal protective equipment and by
training staff and contractors in correct
manual handling practices. In FY21 the
business has focused on promoting and
improving early intervention practices
which allow for identification and reporting
of early signs of discomfort. This enables
assistance with activity assessments and
provision of light duties to ease any
discomfort experienced. To maintain
visibility of such reports, the company’s
total recordable incident frequency rate
(TRIFR) reporting presented below has
been expanded to include restricted work
injuries in addition to lost-time and medical
treatment injuries.
The safety and wellbeing of our people is
always at the centre of our people
initiatives. Metroglass believes that all
injuries are preventable and that its people
should get home safe every day. With a
positive attitude towards risk management
and compliance with the control processes,
we actively strive to learn from accidents,
near misses and safety performance
indicators and bring about continual
improvement. The company has placed
strong emphasis on ensuring the correct
reporting and recording of incidents, and
that all events are thoroughly investigated,
and learnings communicated to
prevent recurrence.
The company’s safety programme and
systems are evolving and maturing, and we
are continuing to put considerable effort
into supporting our teams with improved
working practices and standards for
controlling hazards effectively. All the
company’s New Zealand properties are
working towards implementing a health and
safety management system based on
industry best practice (ISO 45001). In FY21
we also introduced updated health and
safety management software which, when
fully implemented, will automate various
health and safety management processes
and provide enhanced documentation and
reporting functions to assist in our
continuous improvement initiatives.
75
CORPORATE GOVERNANCE
Corporate Governance (continued)
Group safety performance
FY21FY20FY19
LTIFR
15.6
(33 incidents)
19.4
(44 incidents)
16.0
(28 incidents)
TRIFR (new methodology)
Includes: LTIs, MTIs and RWIs
53.0
(112 incidents)
TRIFR (prior methodology)
Includes: LTIs and MTIs
27.4
(58 incidents)
40.2
(91 incidents)
51.8
(91 incidents)
Notes:
• Acronyms stand for: lost time injury (LTI),
medical treatment injury (MTI), restricted
work injury (RWI);
• Lost-Time Injury Frequency Rate (LTIFR)
is measured by calculating the number
of injuries resulting in at least one full
workday lost per million hours worked;
• Total Reportable Incident Frequency
Rate (TRIFR) is measured by calculating
the number of medical treatment cases,
restricted work cases and lost-time
injuries per million hours worked.
> The FY21 TRIFR metric includes 54
restricted work cases. This is a new
report and incident capture category
that tracks early intervention taken to
prevent aggravation into a lost-
time injury.
Principle 7: Auditors
“The board should ensure the quality
and independence of the external
audit process.”
The Metroglass Audit and Risk
Management Committee is charged with
overseeing all aspects of the external and
internal audit of the company. It does not
take decisions on behalf of the board.
However, it has delegated responsibility for:
External Audit
• Recommending the appointment and
removal of the auditors
• Recommending audit fees
• Reviewing auditor independence
and performance
• Reviewing and monitoring audit
service delivery
• Ensuring the ability of the external
auditors to carry out their statutory
audit role and their independence is not
impaired, or could reasonably be
perceived to be impaired
• Serving as the primary contact point for
auditors in relation to any problems,
reservations or issues arising from the
audit and referring matters of a material
or serious nature to the board.
Internal Audit
• Recommending internal audit
assignments
• Monitoring and reviewing the internal
auditing practices.
The company does not have a stand-alone
internal audit function. External advisors
are employed to evaluate and improve the
effectiveness of the company’s risk
management and internal processes.
Progress and results on these projects are
reported regularly to the Audit and Risk
Committee or the board.
The Audit and Risk Committee is authorised
by the board, at Metroglass’ expense, to
obtain such outside legal or other
independent information and advice
including market surveys and reports, and
to consult with such management
consultants and other outside advisors
as it views necessary to carry out
its responsibilities.
The Audit and Risk Committee meets at
least three times each year (the
committee met 12 times in FY21) and has
direct access to Metroglass’ external and
internal auditors and senior management.
On at least one occasion each year, the
Audit and Risk Committee meets with
the external auditors without
management present.
Annual Shareholders’ Meeting
Shareholders have the opportunity to ask
questions of the board and of the external
auditors, who attend the Annual
Shareholders’ Meeting. The external
auditors are available to answer questions
from shareholders in relation to the
conduct of the audit, the independent
audit report and the accounting policies
adopted by Metroglass.
Principle 8: Shareholder Rights and
Relations
“The board should respect the rights of
shareholders and foster constructive
relationships with shareholders that
encourage them to engage with
the issuer.”
Metroglass endeavours to keep its
shareholders informed of important
developments concerning the company and
encourages them to follow its
announcements. Metroglass believes that
effective engagement with investors will
benefit both the company and investors.
In the 2021 financial year, Metroglass
communicated with its shareholders using
the following means:
• Periodic market announcements, which
are released first to NZX and ASX
• Periodic investor briefings or site tours,
the materials for which are also released
first to NZX and ASX (if the materials are
different to that previously released to
the NZX and ASX)
• The Annual and Interim Reports
• The Annual Shareholders’ Meeting and
the Notice of Meeting
• The company’s corporate website.
The company’s Chair, CEO, CFO and
Investor Relations Officer currently lead
engagement with shareholders and, in line
with Metroglass’ Market Disclosure Policy,
aim to be responsive, to provide clear,
accurate and timely disclosures, and to
provide meaningful insight into the
company and the industry.
76
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Corporate Governance (continued)
Electronic Communications
Shareholders are encouraged to receive
communications from, and send
communications to, the company and its
security registry electronically. The
shareholder contact point at the company
is: glass@metroglass.co.nz.
Annual Reports
Metroglass’ Annual Reports and Interim
Reports are all available on the company’s
website at: www.metroglass.co.nz/
investor-centre/annual-interim-reports.
Shareholders can elect to receive a printed
copy of these reports by contacting the
company’s share registrar, Link Market
Services. Any shareholder who does
request a hard copy of the Metroglass
Annual Report will be sent one in the
regular post.
Shareholder Voting Rights
In accordance with the Companies Act
1993, Metroglass’ Constitution and the NZX
Main Board Listing Rules, the company
refers major decisions which may change
the nature of the company to shareholders
for approval.
Metroglass conducts voting at its
shareholder meetings by way of a poll and
on the basis of one share, one vote.
Further information on shareholder voting
rights is set out in Metroglass’
Constitution.
Notice of Annual Shareholders’
Meeting
Metroglass’ previous annual shareholders’
meeting was held on 21 August 2020. The
notice of the meeting was released to the
market on 22 July 2020. Minutes of the
meeting are available on the company’s
website at: www.metroglass.co.nz/
investor-centre/annual-shareholders-
meeting/.
The 2021 Annual Shareholders’ Meeting is
expected to be held on 6 August 2021 in
Auckland. The time and place will be
provided by notice to all shareholders
nearer to that date.
77
CORPORATE GOVERNANCE
Remuneration Report
All remuneration packages are reviewed at least annually, considering individual and company performance, market movements and
independent advice. The objective of the company’s Remuneration Policy is to ensure that the remuneration of directors and all staff
properly reflects each person’s accountabilities, duties, responsibilities and their level of performance, to ensure that remuneration is
competitive in attracting, motivating and retaining staff of the highest calibre.
Directors’ Remuneration
The company distinguishes the structure of non-executive directors’ remuneration from that of executive directors. Non-executive
directors are paid a fixed fee in accordance with the determination of the board. The total amount of remuneration and other benefits
received by each director during the year ended 31 March 2021 is set out below.
DirectorResponsibilities2021 Directors’ Fees
Standing Directors
Peter GriffithsChair of the Board, Member of the Audit and Risk Committee$160,000
Angela BullDirector, Chair of the People and Culture Committee$85,000
Russell ChenuDirector, Member of the Audit and Risk Committee$90,000
Mark EglintonDirector, Member of the People and Culture Committee$85,000
Rhys JonesDirector, Member of the People and Culture Committee$85,000
Graham StuartDirector, Chair of the Audit and Risk Committee$97,500*
Past Directors
Willem (Bill) RoestDirector, Chair of the Audit and Risk Committee$25,000**
Total$627,500
* Graham Stuart was appointed to the board with effect from 1 December 2019, as a member of the Audit and Risk Committee from 1 April 2020 and as Chair of the Audit and Risk
Committee from 1 July 2020.
** Willem (Bill) Roest resigned from the board with effect from 30 June 2020.
The Chair of the Board receives $160,000 per annum (with no additional committee fees paid) and the non-executive directors receive
$80,000 per annum. The Chair of the Audit and Risk Committee receives an additional $20,000 per annum and other members of the Audit
and Risk Committee receive an additional $10,000 per annum. The Chair and members of the People and Culture Committee receive an
additional $5,000 per annum. Directors may also seek the board’s approval for special remuneration should the specific circumstances
justify this (2021: Nil). The company currently has no executive directors on the board.
The board reviews its fees on a periodic basis. The maximum aggregate amount of remuneration payable by Metroglass to the non-
executive directors (in their capacity as directors) is set at $614,000. This fee pool was last changed in May 2017 when it was increased
from $600,000 to $614,000 following the appointment of an additional director in accordance with the NZX Listing Rules in place at that
time. The fee pool was temporarily increased in FY21 to accommodate an additional director (from 1 April 2020 to 30 June 2020) in
accordance with NZX Listing Rule 2.11.3.
Directors’ fees exclude GST, where appropriate. No retirement or termination benefits are paid to non-executive directors; however,
directors are entitled to be refunded for reasonable travel and other expenses incurred by them in connection with their attendance
at board or shareholder meetings, or otherwise in connection with the Metroglass Group’s business. The company does not offer an
equity-based remuneration scheme for directors. The board considers that director and executive remuneration is appropriate and
is not excessive.
Directors and officers also have the benefit of Directors and Officers’ Liability insurance. This covers risks normally included in such
policies arising out of acts or omissions of directors and employees in their capacity as such. The insurance cover is supplemented
by the provision of director and officer indemnities from the company but this does not extend to criminal acts.
Executive Remuneration
The remuneration of members of senior management (CEO, SLT and certain direct reports) is designed to promote a higher-performance
culture, to secure the participant’s retention in Metroglass and to reward performance that underpins the achievement of Metroglass’
business strategy and long-term shareholder wealth creation.
78
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Remuneration Report (continued)
The board is assisted in delivering its responsibilities and objectives for executive remuneration by the People and Culture Committee.
The role and membership of this committee is set out under Principle 2 in the Statement of Corporate Governance.
The CEO’s performance is reviewed annually by the board. The CEO reviews the performance of the SLT and makes recommendations
to the board for approval in relation to the team’s remuneration and achievement of key performance indicators (KPIs).
The compensation structures of the CEO and senior management is made up of three elements:
• A fixed base salary
• A discretionary short-term incentive (STI)
• A long-term incentive (LTI).
Short-term incentives
Short-term incentives (STI) are at-risk payments designed to motivate and reward for performance, typically within that particular
financial year. The target value of an STI payment is set annually, usually as a percentage of the participant’s base salary. For the 2021
financial year, the relevant percentages varied from 10% to 50%.
The STI plans relate to achievement of annual performance metrics which aim to align executives to a shared set of KPIs based on
business priorities for the next 12 months and that participants are able to influence. Target measurements are set on either a regional
or a national basis depending on the participant’s position and role.
In the 2021 financial year, the sole metric driving the STI plans for both New Zealand and Australia was:
TargetWeightingFY21 Result: NZFY21 Result: Australia
Earnings before interest and tax (EBIT) performance100%Achieved (100%)Partially achieved 25%
The payable rewards for each STI KPI target are determined by the level of performance achieved and are calculated on a linear scale
increasing from the ‘Minimum performance target’ and receiving 30% of the specified reward, up to the ‘Maximum performance target’
and receiving 100% of the specified reward. The 2021 STI plan did not allow for additional payments where actual performance exceeded
the Maximum performance target.
The board retains discretion on the payment of STI awards and will consider additional factors. For example, STI payments may be withheld
if there was a death or permanent material disability of any worker (exceptions may be made for a motor accident and acts of God as
beyond management control).
Long-term incentives
The company’s LTI plan for FY21 was announced on 7 August 2020. The LTI plan is made up of both performance share rights and share
options. The LTI is designed to secure those employees’ retention in Metroglass and to reward performance that underpins the
achievement of Metroglass’ business strategy and long-term shareholder wealth creation. The key features of the 2021 LTI plan are
as follows:
• Participants will be offered an annual award of a specified number of both performance rights and share options in Metroglass (in
accordance with the LTI rules).
• The performance rights will enable participants to acquire shares in Metroglass with no consideration payable, subject to Metroglass
achieving set performance hurdles and meeting certain vesting conditions.
• The share options enable participants to acquire shares in Metroglass at a specified exercise price, subject to Metroglass achieving set
performance hurdles and meeting certain vesting conditions.
A total of 8,966,741 share options and 3,673,575 performance share rights remain outstanding pursuant to the 2018, 2019, 2020 and 2021
LTI plans as at 21 May 2021.
2017 NZ Employee Share Purchase Scheme (Scheme)
On 21 February 2017, Metroglass launched an employee share purchase scheme for New Zealand-based employees. This scheme enabled
participants to purchase either $1,000 or $2,000 worth of Metroglass shares at a 50% discount to market value. Shares are held in trust
on behalf of the participants for a minimum three-year holding period. In aggregate, 348,086 shares were issued under this scheme on
21 February 2017 at an issue price of $1.54. This scheme vested in February 2020 and has now been closed.
79
REMUNERATION REPORT
Remuneration Report (continued)
Chief Executive Officer’s Remuneration:
Metroglass’ CEO Simon Mander joined the company on 19 November 2018. The former CEO departed on 31 March 2018.
Fixed CEO remuneration for the past five financial years (12 months to 31 March)
Fixed Remuneration
Financial yearCEOSalary
Other
benefits**
Total fixed
remuneration
FY21Current$650,000$26,132$676,132
FY20Current$650,000$25,682$675,682
FY19Current$214,166*$8,173$222,339
FY18Former$550,000$20,385$570,385
FY17Former$500,000$18,555$518,555
* Pro-rated for a partial year.
** Other benefits include medical insurance and KiwiSaver.
Description of Chief Executive Officer’s remuneration for performance for the year ended 31 March 2021
PlanDescriptionPerformance measures
Percentage of
maximum awarded
STISet at 50% of fixed remuneration for FY21 if the
highest STI target is achieved. This year’s scheme
did not allow for additional incentive payments
should performance exceed the top STI target.
100%: EBIT performance99.5%
LTIIssued 19 June 2020. The first vesting date is
3 July 2023 and no instruments have yet had the
chance to vest.
50% share options require Metroglass’ Total
Shareholder Return (TSR) to exceed a compound
annual pre-tax rate that is 1% above the
company’s cost of equity
N/A
50% performance share rights measured against
NZX 50 group TSR hurdle
N/A
PAY FOR PERFORMANCE: SHORT-TERM INCENTIVES
Financial year of STI paymentCEO
Relevant
performance period
% STI awarded
against maximumSTI paid
FY22CurrentFY2199.5%$323,278
FY21CurrentFY20NilNil
FY20CurrentFY1959%$96,364*
FY19FormerFY18NilNil**
FY18FormerFY1710%$28,563
* Prorated for 4 months out of 12 following the CEO joining in November 2018.
** A separate one-off incentive payment was awarded to the departing CEO in the 2019 financial year as described in detail in the 2018 Annual Report.
80
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Remuneration Report (continued)
PAY FOR PERFORMANCE: LONG-TERM INCENTIVES
CEO
LTI
(initial grant values)*
% LTI vested against
maximum
Span of LTI
performance periods
FY21Current162,500N/A04/07/20 – 03/07/23
FY20Current162,500N/A07/06/19 – 06/06/22
FY19CurrentNilN/AN/A
FY18Former125,000Nil**08/06/17 – 08/06/20
FY17Former125,000Nil**10/06/16 – 10/06/19
* These are LTI grant values (not payments), which require relevant hurdles to be met over specific performance periods. Performance with regard to the FY20 LTI scheme will be
tested in the FY23 year.
** These holdings were cancelled when the former CEO left the company (the three-year holding hurdle was not met).
Employees’ Remuneration
The number of employees or former employees (including employees holding office as directors of subsidiaries) who received remuneration
and other benefits in their capacity as employees, the value of which was at or in excess of $100,000 and was paid to those employees
during the financial year ended 31 March 2021, is specified in the table below.
The remuneration figures shown in the “Remuneration” column include all monetary payments actually paid during the course of the 2021
financial year. This includes salary, STI payments that were paid during the year, and the value of performance share rights and share
options (LTI) expensed during the financial year. Remuneration shown below includes settlement payments and payments in lieu of notice
with respect to certain employees upon their departure from the company but does not include any amounts paid post 31 March 2021
that relate to the year ended 31 March 2021.
Remuneration
Number of
employees
100,000 – 110,00047
110,000 – 120,00029
120,000 – 130,00024
130,000 – 140,00015
140,000 – 150,00011
150,000 – 160,0006
160,000 – 170,0003
170,000 – 180,0007
180,000 – 190,0002
190,000 – 200,0003
200,000 – 210,0005
210,000 – 220,0001
Remuneration
Number of
employees
220,000 – 230,0001
230,000 – 240,0001
240,000 – 250,0002
250,000 – 260,0001
270,000 – 280,0001
280,000 – 290,0001
290,000 – 300,0001
300,000 – 310,0002
310,000 – 320,0001
420,000 – 430,0001
560,000 – 570,0001
740,000 – 750,0001
81
REMUNERATION REPORT
Statutory Information
Securities Exchange Listing
Metroglass’ shares are listed on the New Zealand Securities Exchange (NZX) and Australian Securities Exchange (ASX).
Shares on issue as at 31 March 2021
RegisterSecurityHoldersUnits
New ZealandMPG (NZX)2,939183,278,550
AustraliaMPP (ASX)1092,099,536
TotalMPG (Dual)3,048185,378,086
Securities issued, and still outstanding, under the 2017 – 2021 long term incentive plans as at 31 March 2021:
Long-Term Incentive SchemeSecurityHoldersUnits
2018 Performance Share RightsMPG (NZX)18193,367
2018 Share OptionsMPG (NZX)18773,472
2019 Performance Share RightsMPG (NZX)24374,275
2019 Share OptionsMPG (NZX)241,193,009
2020 Performance Share RightsMPG (NZX)321,486,293
2020 Share OptionsMPG (NZX)323,963,436
2021 Performance Share RightsMPG (NZX)121,619,640
2021 Share OptionsMPG (NZX)123,036,824
82
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Statutory Information (continued)
Top 20 Shareholders
Metroglass’ top 20 registered shareholders as at 31 March 2021 were as follows:
RankInvestor name
Shares at %
31 March 2021Shares
1HSBC Nominees (New Zealand) Limited
1
29,849,086 16.10%
2Masfen Securities Limited25,401,929 13.70%
3Accident Compensation Corporation
1
13,126,316 7.08%
4Takutai Limited7,108,825 3.83%
5Benjamin James Renshaw5,386,260 2.91%
6New Zealand Depository Nominee3,850,547 2.08%
7Trevor John Logan3,259,670 1.76%
8FNZ Custodians Limited2,224,461 1.20%
9Daniel Charles Skinner1,698,630 0.92%
10Grant James Houseman1,482,267 0.80%
11Private Nominees Limited
1
1,296,045 0.70%
12Philip George Lennon1,250,341 0.67%
13=Kevin John Summersby1,200,000 0.65%
13=Ryca Investments Limited1,200,000 0.65%
13=Andrew Rutherford Wallace & Miranda Ruth Burdon1,200,000 0.65%
16Weijun Zhang & Yuhua Yang1,000,000 0.54%
17Da Wei Chu Su990,000 0.53%
18Citibank Nominees (Nz) Ltd
1
946,559 0.51%
19Hui Wen Yang930,000 0.50%
20Jedi Investments Limited900,000 0.49%
Totals: Top 20 registered holders of ordinary shares104,300,92656.26%
Totals: Remaining holders’ balance81,077,15043.74%
1 Held through New Zealand Central Securities Depository Limited (NZCSD). NZCSD provides a custodial depository service which allows electronic trading of securities by its members
and does not have a beneficial interest in these shares. As at 31 March 2021, a total of 45,218,086 Metroglass shares (or 24.39% of the ordinary shares on issue) were held through
NZCSD.
Substantial Shareholders
According to the records kept by the company under the Financial Markets Conduct Act 2013, the following were substantial holders in
the company as at 31 March 2021. Shareholders are required to disclose their holdings to Metroglass and to its share registrar by giving a
“Substantial Shareholder Notice” when:
• They begin to have a substantial shareholding (5% or more of Metroglass’ shares)
• There is a subsequent movement of 1% or more in a substantial holding, or if they cease to have a substantial holding
• There is any change in the nature or interest in a substantial holding.
Investor name
Number of
shares as at
31 March 2021%
Date of most
recent notice
Masfen Securities Limited25,401,92913.70%17/02/20
Bain Capital Credit, LP21,162,86211.42%30/11/18
Accident Compensation Corporation13,126,3167.08%25/03/19
83
STATUTORY INFORMATION
Statutory Information (continued)
The following shareholder ceased to be a substantial shareholder during the period 1 April 2020 to 31 March 2021: Investment Services
Group Limited (inclusive of Devon Funds Management) on 20 April 2020.
Distribution of Shareholders
As at 31 March 2021:
Range
Number of
holders%
Number of
shares%
1 – 1,0002518.23 170,213 0.09
1,001 – 5,00098932.45 2,823,447 1.52
5,001 – 10,00055518.21 4,534,123 2.45
10,001 – 50,00092130.22 22,533,866 12.16
50,001 – 100,0001635.35 12,204,380 6.58
Greater than 100,0001695.54 143,112,057 77.20
Total3,048100.00%185,378,086100.00%
Voting Rights
Section 15 of the company’s Constitution states that a shareholder may vote at any meeting of shareholders in person or through a
representative. Metroglass conducts voting by way of a polls; using this method every shareholder present (or through their
representative) has one vote per fully-paid-up share they hold. Unless the board determines otherwise, shareholders may not exercise the
right to vote at a meeting by casting postal votes. More detail on voting can be found in Metroglass’ Constitution available on the
company’s website at: www.metroglass.co.nz/investor-centre/governance/.
Trading Statistics
Metroglass is listed on both the NZX and ASX. The trading ranges for the period 1 April 2020 to 31 March 2021 are as follows:
NZX (NZD)ASX (AUD)
Minimum$0.151 (22/05/20)$0.15 (13/05/20)
Maximum$0.455 (11/02/21)$0.42 (21/12/20)
Range$0.151 – $0.455$0.15 – $0.42
Total shares traded54,199,0642,088,2781
1 Trading in Metroglass shares on the ASX is less liquid than it is on the NZX. The final date on which shares were traded on the ASX during the 12 months to 31 March 2021 was
16 March 2021.
84
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Statutory Information (continued)
Dividend Policy
Dividends and other distributions with respect to the shares are only made at the discretion of the board of Metroglass.
Any dividend can only be declared by the board if the requirements of the Companies Act 1993 are also satisfied. The board’s decision to
declare a dividend (and to determine the quantum of the dividend) for shareholders in any financial year will depend on, among
other things:
• All statutory or regulatory requirements
• The financial performance of Metro Performance Glass
• One-off or non-recurring events
• Metroglass’ capital expenditure requirements
• The availability of imputation credits
• Prevailing business and economic conditions
• The outlook for all of the above
• Any other factors deemed relevant by the board.
Over the past three financial years, the company has prioritised debt reduction and worked towards achieving a leverage ratio for the
group (as measured by net debt to rolling 12-month EBITDA) of approximately 1.5 times. Despite the disruptions from COVID-19, the
success of Metroglass’ debt reduction means that the group is expecting to reach its 1.5x leverage target in the first half of FY22.
At 31 March 2021, this ratio was 1.7x times (on a pre-IFRS 16 basis).
No dividends have been declared in respect of the 2021 financial year. It is the board’s current intention to resume dividend payments
alongside the company’s FY22 interim results. The company will seek to pay dividends of between 50% and 70% of net profit after tax
before significant items, subject to several considerations including those listed above.
NZX and ASX Waivers
Metroglass does not have any waivers from the requirements of the NZX Main Board Listing Rules and has waivers in place with the ASX
that are standard for a New Zealand company listed on the ASX.
Metroglass has an ASX Foreign Exempt Listing on the ASX. This category is based on a principle of substituted compliance, recognising
that for secondary listings, the primary regulatory role and oversight rest with the home exchange. Metroglass continues to have a full
listing on the NZX Main Board.
Disclosure of Directors’ Interests
Directors disclosed, under section 140(2) of the New Zealand Companies Act 1993, the following interests as at 31 March 2021:
Director and companyPosition
Angela Jennifer Bull
Callaghan Innovation Research LimitedDirector
Realestate.co.nzDirector
Real Estate Institute of New ZealandDirector
Tramco GroupChief Executive
Russell Langtry Chenu
5R Solutions Pty LimitedDirector
CIMIC Group LimitedDirector
Reliance Worldwide Corporation LimitedDirector
Mark Kenneth Eglinton
NDA Group LimitedDirector / Shareholder / Officer
Sail City No. 36 LimitedDirector / Shareholder
Snapper Rock International LimitedChair
Young Enterprise TrustTrustee
85
STATUTORY INFORMATION
Statutory Information (continued)
Director and companyPosition
Peter Ward Griffiths
Another New Plane Co. LimitedDirector / Shareholder
Great Barrier Airlines LimitedDirector / Shareholder
Island Leader LimitedDirector / Shareholder
New Zealand Business and Parliament TrustChair / Trustee
NZDS Properties (No. 2) LimitedDirector / Shareholder
Shoman LimitedDirector / Shareholder
Rhys Jones
Carbine Aginvest Corporation LimitedDirector
Dairy Technology Services LimitedDirector
Resin & Wax Holdings LimitedChair / Shareholder
Ridley Corporation LimitedDirector
Vulcan Steel LimitedDirector / Shareholder
Vulcan Steel Pty LimitedDirector / Shareholder
Graham Robert Stuart
EROAD LimitedDirector
Leroy Holdings LimitedDirector / Shareholder
Leroy Holdings Number 2 LimitedDirector / Shareholder
Northwest Healthcare Properties Management LimitedDirector
Tower LimitedDirector
Vinpro LimitedDirector
Subsidiaries and Subsidiary Directors
Section 211(2) of the Companies Act 1993 requires the company to disclose, in relation to its subsidiaries, the total remuneration and value
of other benefits received by the directors and former directors, together with particulars of entries in the interests registers made,
during the year ended 31 March 2021.
No group employee appointed as a director of Metro Performance Glass Limited or its subsidiaries receives or retains any remuneration
or other benefits in their capacity as a director, and each is a full-time group employee. The remuneration and other benefits of such
employees and former employees (received as employees) totalling NZ$ 100,000 or more during the year ended 31 March 2021 is included
in the remuneration bandings disclosed on page 81 of this Annual Report.
86
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
Statutory Information (continued)
As at 31 March 2021, Metroglass’ subsidiary companies and subsidiary directors were:
CompanyDirectors
Australian Glass Group (Holdings) Pty LimitedSimon Mander, Brent Mealings
Australian Glass Group Finance Company Pty LimitedSimon Mander, Brent Mealings
Australian Glass Group Investment Company Pty LimitedSimon Mander, Brent Mealings
Canterbury Glass & Glazing LimitedSimon Mander, Brent Mealings
Christchurch Glass & Glazing LimitedSimon Mander, Brent Mealings
Hawkes Bay Glass & Glazing LimitedSimon Mander, Brent Mealings
I G M Software LimitedSimon Mander, Brent Mealings
Metroglass Finance LimitedSimon Mander, Brent Mealings
Metroglass Holdings LimitedSimon Mander, Brent Mealings
Metropolitan Glass & Glazing LimitedSimon Mander, Brent Mealings
Taranaki Glass & Glazing LimitedSimon Mander, Brent Mealings
Directors’ Shareholding in Metroglass
The directors’ respective interests in Metroglass shares as at 31 March 2021 are as follows:
Number of shares
in which a relevant
interest is heldAcquisition datesDisposal dates
Angela Bull65,82510/07/17, 30/08/17, 28/08/18 and 28/02/20N/A
Russell Chenu25,00029/07/14N/A
Mark EglintonNil
Peter Griffiths195,500Eight dates between 16/05/16 and 29/08/18N/A
Rhys Jones58,00031/08/18N/A
Graham Stuart100,00028/02/20N/A
Donations
For the year ended 31 March 2021, Metroglass, including its subsidiaries, made donations of $9,143.49 (2020: $27,526.10).
Net Tangible Assets Per Security
Net tangible assets per security at 31 March 2021: 14.0 cents (31 March 2020: 9.9 cents).
Currency
Within this Annual Report, all amounts are in New Zealand dollars, unless otherwise specified.
Credit Rating
Metroglass has not requested a credit rating.
87
STATUTORY INFORMATION
Company Directory
Registered Office
5 Lady Fisher Place
East Tamaki
Auckland 2013
New Zealand
Email: glass@metroglass.co.nz
Phone: +64 9 927 3000
Board Of Directors
Peter Griffiths – Chair and Member of the Audit and
Risk Committee
Angela Bull – Non-Executive Director and Chair of
the People and Culture Committee
Russell Chenu – Non-Executive Director and Member
of the Audit and Risk Committee
Rhys Jones – Non-Executive Director and Member
of the People and Culture Committee
Graham Stuart – Non-Executive Director and Chair
of the Audit and Risk Committee
Mark Eglinton – Non-Executive Director and
Member of the People and Culture Committee
Senior Leadership Team
Simon Mander – Chief Executive Officer
Brent Mealings – Chief Financial Officer
Robyn Gibbard – GM Upper North Island
Gareth Hamill – GM Lower North Island
Nick Hardy-Jones – GM South Island
Nick Johnson – Chief Information Officer
Amandeep Kaur – Group Safety and Wellbeing Manager
Andrew Paterson – GM Strategy and Planning
Barry Paterson – GM Commercial Glazing and Technical
Dayna Roberts – Human Resources Director
Auditor
PricewaterhouseCoopers
15 Customs Street West
Auckland 1010
New Zealand
Lawyers
Bell Gully
Vero Centre
48 Shortland Street
Auckland 1140
New Zealand
Bankers
ASB Bank Limited
Westpac New Zealand Limited
Westpac Banking Corporation
Share Registrar
Link Market Services
Level 11, Deloitte Centre
80 Queen Street, Auckland 1010
PO Box 91976, Auckland 1142
New Zealand
Further Information Online
This Annual Report, all our core governance documents (our
constitution, some of our key policies and charters), our investor
relations policies and all our announcements can be viewed on our
website: www.metroglass.co.nz/investor-centre/.
Investor Calendar
2021 Annual Shareholders’ Meeting 6 August 2021
2022 Half Year balance date30 September 2021
2022 Half Year results announcement November 2021
2022 Full Year balance date 31 March 2022
2022 Full Year results announcementMay 2022
88
METRO PERFORMANCE GLASS LIMITED ANNUAL REPORT 2021
insight
creative.co.nz
MPG021
METRO PERFORMANCE GLASS
ANNUAL REPORT 2021
METROGLASS.CO.NZ
METRO PERFORMANCE GLASS
ANNUAL REPORT 2021
---
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019
Results for announcement to the market
Name of issuer Metro Performance Glass Limited
Reporting Period 12 months to 31 March 2021 (FY21)
Previous Reporting Period 12 months to 31 March 2020 (FY20)
Currency New Zealand dollars
Amount (000s) Percentage change
Revenue from continuing
operations
$232,274 (8.9%)
Total Revenue $232,274 (8.9%)
Net profit/(loss) from
continuing operations
$8,544 10,935%
(profit in FY21 vs. loss in FY20)
Total net profit/(loss) $8,544 10,935%
(profit in FY21 vs. loss in FY20)
Interim/Final Dividend
Amount per Quoted Equity
Security
Not applicable
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.1402 $0.0990
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Accompanying this announcement are the Group’s audited
consolidated financial statements for the twelve months ended
31 March 2021. These financial statements and the full year
result commentary dated 21 May 2021 provide the balance of
information requirements in accordance with NZX Listing Rule
3.5 and Appendix 2.
Authority for this announcement
Name of person
authorised
to make this announcement
Andrew Paterson
Contact person for this
announcement
Andrew Paterson
Contact phone number +64 27 403 4323
Contact email address Andrew.Paterson@metroglass.co.nz
Date of release through MAP
21 May 2021
Audited financial statements accompany this announcement.
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.