Our opinion on the current state of METAIR(MTA)Metair (MTA) produces energy solutions (batteries) and components for the vehicle manufacturing business. It has operations in Africa and in various European and Middle East countries. The company's energy storage business is located in Turkey in an operation called "Mutlu". The business it is in has the prospect of growing rapidly as electric motor vehicles replace those powered by internal combustion engines.
The company has announced its intention to split into its European acid battery business and its automotive components business in South Africa. In a report on the impact of the floods in Natal, the company said, "Whilst the impact on Metair’s facilities was minimal and operations had promptly returned to normal, a major Original Equipment Manufacturer (OEM) customer of the Group advised that it suffered significant damage to its plant with production suspended for clean-up operations and assessments to be carried out." The company received a R150m insurance payout for business interruption from the Natal floods.
In its results for the six months to 30th June 2024, the company reported revenue up 4% and a headline loss of 3c per share compared with a profit of 41c in the previous period. The company's net asset value (NAV) increased 12% to 2923c per share. The company said, "The reporting period required ongoing agility within Metair’s operating markets and mitigating actions to address the negative impacts of lower South African Original Equipment Manufacturers’ (“OEMs”) customer demand and volume variability."
The share has been falling since October 2021. We recommend waiting for a break up through its downward trendline before investigating further. The share has been rising since June 2024, but has yet to break up through its long-term downward trendline.
On 6th December 2023, the company announced that its CEO, Sjoerd Douwenga, would resign with effect from 31st January 2024 due to ill health. On 16th September 2024, the company announced that it had sold its entire shareholding in Mutlu, its Turkish operation, for R1,95bn. The news caused the share price to jump. On 5th October 2024, the company announced that it had acquired Autozone from the business rescuers for up to R290m in cash.
