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The owners of Australia's largest home builder Metricon are determined to dispel any doubts about the company's future, announcing a $30 million capital boost as a sign of their commitment amidst swirling rumours of the Melbourne-headquartered group's demise in an environment where many developers have hit the wall.
Last week Gold Coast-based homebuilder Pivotal Homes was placed into liquidation, following several restructurings in recent months for other builders including Sydney developer Next, Gold Coast-based Condev, and the Melbourne-headquartered parent company of Probuild.
Speculation mounted over the fate of Metricon, its 2,500 staff and 4,000 homes under construction Australia-wide following the death of founder and CEO Mario Biasin, but in the aftermath acting CEO Peter Langfelder claimed all contracts were profitable and payments were up-to-date.
The $30 million cash injection announced Friday evening is coupled with the Commonwealth Bank (ASX: CBA) agreeing to double Metricon’s existing working capital facility.
Langfelder said ongoing rumours were beginning to impact on the company, and Metricon’s owners wanted to demonstrate in real dollars - their own- and not just words their confidence in its future.
“We have previously said that our company has a proven history of success and remains profitable and viable and that we have the full support of our key stakeholders," Langfelder said.
“We have also appreciated incredible support from many of our customers, suppliers and trades – but sadly, this hasn’t been enough to reinstall the complete confidence of the broader industry.
“This significant injection of capital by the owners demonstrates to our customers, employees, sub-contractors and suppliers our confidence in the viability, profitability and future of the Metricon business. We hope it may help cultivate a groundswell of support for Metricon, which is a great Australian success story.”
He said the company was appreciative of CBA's support, which also demonstrates confidence in Metricon's future. He reiterated that whilst industry conditions were challenging the entire sector, Metricon has always been confident of weathering this storm and powering ahead with plans for growth.
Metricon executives will continue talks with all key stakeholders in relation to support packages aimed at assisting the entire construction industry.
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