- Co-founder and CEO Mario Biasin died suddenly a fortnight ago
- Like many in the industry, the company is facing labour and supply shortages
- Cash injection comes as the home builder continues to engage in discussions with a range of stakeholders
Following industry and media speculation since the unexpected death of co-founder and chief executive Mario Biasin two weeks ago, Metricon has announced an injection of $30 million in additional capital into the business as a sign of its commitment to the future of the home builder.
The news comes as the health of the wider industry is under close scrutiny following the collapse of businesses such as Pivotal Homes and REMI Capital over the past week alone.
Metricon acting CEO, Peter Langfelder, said ongoing rumours were impacting the company, and wanted to use the injection to demonstrate in their own, real dollars that they had 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,” said Mr Langfelder.
“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.”
Peter Langfelder, Metricon acting CEO
Ongoing support
In addition to the capital injection, Metricon’s long term banking partner, Commonwealth Bank, has also announced a 100% increase in the company’s existing working capital facility.
“We are so appreciative of the bank’s support – which demonstrates its confidence in our future,” added Mr Langfelder.
While acknowledging that conditions across the industry are tough, he is confident of “weathering this storm”.
Metricon is continuing talks with a range of key stakeholders, reportedly including the NSW government.
Currently, Metricon Homes employs 2,500 staff and has 4,000 houses under construction, making it the largest home builder in Australia.
