Metair CEO Paul O’Flaherty has agreed to extend his term until December 31, 2028. 

“We are very pleased that Paul has agreed to extend his tenure,” says Metair chairperson Thandeka Mgoduso.

“This will ensure that our reset and growth strategy, which Paul has led since inception, can effectively transition into the next phase, which includes enhancing the focus on operating excellence and executing growth in aftermarket sales in selected regions on the African continent.”

O’Flaherty will, however, have to move ahead without his CFO, Anesh Jogia, who has resigned with effect from April 1.

A replacement must still be found.

Metair on Wednesday released its financial results for the year ended December 31, with O’Flaherty able to tell investors that the worst is hopefully over for the component manufacturer and aftermarket specialist.

The JSE-listed group has, since O’Flaherty’s arrival in early 2023, managed to dispose of its Mutlu Akü battery business, which operated in a volatile, hyperinflationary environment in Türkiye, orchestrate a return to profitability at component maker Hesto, add embattled AutoZone to its portfolio in a R279-million deal, and restructure its multibillion-rand debt, a significant portion of which was due at the end of March.

Net debt has come down from R4.55-billion at the end of 2023, to R4-billion at the end of 2024.

The Mutlu sale came at a loss, including costs, of R3.9-billion.

“But it is done; we are out,” says O’Flaherty.

“[Last year] was a year of significant transformation for Metair,” he adds.

“We took decisive steps to reset our business, focusing on cost containment, profitability and future growth.

“While the operating environment remained challenging, we made substantial progress in derisking our balance sheet, improving operational efficiencies and positioning the group for long-term success.”

The past financial year saw Metair remove the Energy Storage business vertical in favour of a new Aftermarket Parts and Services vertical, with the Automotive Components Manufacturing vertical remaining.

Batteries are, however, still a significant portion of Metair’s business, but no longer operate in a vertical of its own.

It is clear that Metair aims to grow the Aftermarket business significantly from its current contribution of 26% of revenue.

O’Flaherty says AutoZone is integral to the company growth strategy through its 213 retail branches and its franchises in Namibia, Swaziland and Botswana.

“We need AutoZone back at the levels it was two, three years ago.”

The AutoZone acquisition also serves to derisk Metair from its current high exposure to South African vehicle manufacturers, with both Ford and Toyota – as the group’s biggest customers – experiencing production line challenges in recent years.

Metair will also look to secure new local vehicle manufacturers as customers, as growing imports from India and China, a changing European export market, and tough local economic conditions may impact the production footprint of its current customers over time.

This said, Metair could benefit from the launch of the Ford Ranger plug-in-hybrid Ranger, as well as the new Toyota Hilux, with the latter set to arrive in the first quarter of 2026.

Metair reported a 2% drop in revenue from continuing operations (restated to exclude Mutlu) for the 2024 financial year, to R11.8-billion, with operating profit up 28%, to R603-million.

Including Mutlu, Metair suffered a loss of R4.15-billion.