Metair lifts revenue to R3.2m

Johannesburg - Metair Investments [JSE:MTA] has recorded good interim results for the half year ending June 30, boosted by the inclusion of its Turkish acquisition.

"We are very pleased with the results," Metair’s managing director Theo Loock told Fin24.

The listed automotive component manufacturer and distributor increased revenue by 32% to R3 235m (H1 2013: R2 460m) and operating profit commensurately improved by 16% to R319m (H1 2013: R274m).

Profit after tax increased to R251m (H1 2013: R229m) and cash generated increased 48% to R335m.

Metair included the first contribution from Mutlu Group (Mutlu), which includes Mutlu Akü, the leading lead-acid battery manufacturer and distributor in Turkey and the Middle East for a full period.

"We've had a very good performance from Mutlu Akü in Turkey and the results in Turkey is a 500% improvement on the previous year," said Loock.

He said in a statement on Monday that Mutlu Akü delivered an outstanding first half performance that supported the group’s overall results.

“The integration of Mutlu Akü is progressing according to plan and remains a key pillar of Metair’s strategy to derive 50% of business from Original Equipment Manufacturers (OEM), 50% from the Aftermarket and 50% of overall business from batteries.”

Loock said that it faced some challenges in South Africa "brought about by the continued labour disruptions".

Watch: Metair CEO pleased with results

The group said it was fortunate that local production was not directly negatively impacted
by any labour action, however, it warned that the long-term effects of the continued labour disruptions is yet to filter through.

Metair announced last week announced a R1.4bn refinancing deal to facilitate the acquisition of Mutlu.

"We very pleased with the results of our refinancing," Metair finance director Sjoerd Douwenga told Fin24.

He said that the group's objective was to secure competitive rates, get a flexible structure start building relationships with core banks.

"We managed to secure a five-year redeemable preference shares at a rate of 69% and a revolving credit facility of R750m at 205 basis points above Jibar (the Johannesburg Interbank Agreed Rate)," Douwenga said.

The R750m revolving credit facility will be used for general corporate purposes, mainly working capital funding as well as capital expansion, while the proceeds of the preference shares will be used to settle the bridge facility from obtained from Absa bank, he concluded.  

Watch: Metair signs R1.4bn refinancing deal

Metair announced the Mutlu Akü acquisition in October of last year and in July said that they had initiated a ‘minorities squeeze-out’ transaction to achieve 100% ownership of Mutlu Akü.

Shares in Metair was trading down at -3.02% at R36.95 at 16:00.

View SENS report on the results.
View SENS report on refinancing of Metair's bridge loan facilities.

 - Fin24