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METAIR:  295   -159 (-35.02%)  13/11/2026 17:17

METAIR INVESTMENTS LIMITED - OPERATIONAL AND TRADING UPDATE FOR THE YEAR ENDING 31 DECEMBER 2026

Release Date: 13/11/2026 08:05
Code(s): MTA     PDF:  
Wrap Text
METAIR INVESTMENTS LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1948/031013/06
ISIN: ZAE000090692
JSE and A2X share code: MTA
('Metair' or the 'Company' or the 'Group')


OPERATIONAL AND TRADING UPDATE FOR THE YEAR ENDING 31 DECEMBER 2026
The Port of Durban is South Africa's principal shipping container gateway and a critical link in the supply chains of retailers, manufacturers, food producers and distributors. Durban Gateway Terminal, which manages terminal operations, has experienced significant operational challenges in recent months, resulting in substantial disruptions, frustration and financial losses for importers and their supply chains.
Among other issues, implementation of the new terminal operating system has severely disrupted container handling. Equipment failures and limited crane availability have compounded the problem, with delays at times approaching 20 days.
These disruptions have adversely affected businesses reliant on imported components and raw materials, resulting in, among other things:
' Production interruptions ' Delays in the delivery of components and raw materials required for manufacturing operations.
' Stock shortages and increased working capital requirements ' Higher levels of inventory in transit, increased safety stock requirements and the need to place orders further in advance. ' Increased logistics costs ' Reliance on alternative transportation arrangements, including airfreight and additional road freight, to mitigate supply chain disruptions.
The commercial impact on Metair has been significant. Airfreight has been utilised as a logistical substitute and the related costs since August 2026 have been exorbitant. Delayed deliveries have forced significant overtime to meet customer commitments and have contributed to a temporary stoppage to one of our customer production lines.
As a result of the aforementioned challenges, the aggregate additional costs incurred and expected to be incurred by the Group for the financial year ending 31 December 2026 are currently estimated to be approximately 20% to 25% of the Group's reported earnings before interest, tax, depreciation and amortisation (EBITDA) before exceptional items in comparison to the financial year ended 31 December 2025. These additional costs are not recoverable from customers.
The Port of Durban continues to experience serious congestion with indications that meaningful improvement might not occur before the end of the first quarter of 2027. Should these conditions persist, the Group may be unable to meet certain commercial commitments to customers and suppliers. In such circumstances, and where the disruption is beyond its reasonable control, Metair may be required to consider invoking applicable force majeure provisions under its contractual arrangements or exercising such other rights as may be available to it under South African law.
Metair continues to engage proactively with relevant stakeholders, including its primary lender and customers, to manage the operational and financial consequences of these disruptions and mitigate the impact on the Group.
In addition to the port-related challenges, the industrial electron beam ('e-beam') machine at Metair's subsidiary, Unitrade 745 Proprietary Limited, which is pivotal to its production processes, has experienced several break downs since August 2026, exacerbating the operational challenges presented by the imported components / raw materials for that business. The e-beam machine has, however, been repaired and its operations have stabilised over recent weeks.
As reported previously, key strategic decisions by the government in the near term are pivotal to sustaining and growing production levels, with stakeholder collaboration required to strengthen local manufacturing competitiveness, support localisation and Complete Knock-Down (CKD) manufacturing operations, and protect and diversify export markets as well as fix structural constraints. These key
1 strategic decisions remain outstanding, and slow decision making continues to further hamper the industry in the medium term.
The financial information contained in this announcement is the responsibility of the board of directors of the Company and has not been audited, reviewed or reported on by the Group's external auditors. 13 November 2026 Johannesburg Sponsor One Capital
2 Date: 13/11/2026 08:05:58
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