Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Methven 1H profit falls 27%, missing target, on UK loss

Methven first-half profit falls 27%, missing target, on unprofitable UK unit

Nov. 29 (BusinessDesk) - Methven, the tapware maker whose board agreed to link directors' fee increases to earnings growth, reported a worse-than-expected 27 percent drop in first-half profit on its unprofitable British operation.

Net profit fell to $2.3 million, or 3.5 cents per share, in the six months ended Sept. 30, from $3.2 million, or 4.8 cents, a year earlier, the Auckland-based company said in a statement. The company had forecast a 25 percent decline in September. Sales fell 7.2 percent to $50.3 million.

"The global market conditions continue to impact the Methven business, with the uplift in second quarter earnings not sufficient enough to offset the forecast weak first quarter," chief executive Rick Fala said. "Returning the UK business to profitability is a key priority."

The shares rose 0.7 percent to $1.36 and have gained 25 percent this year. The stock is rated an average 'outperform' based on five analyst recommendations compiled by Reuters, with a median target price of $1.375.

Methven's board declared an interim dividend of 4.5 cents per share, or $3 million, with a record date of Dec. 14 payable on Dec. 31.

Earnings before interest, tax, depreciation and amortistion in the New Zealand unit rose 8.2 percent to $4.3 million, while Australian earnings climbed 18 percent to A$1.6 million.

The UK unit posted an ebitda loss of 184,000 pounds. Methven's British management team formalised a restructuring plan last month to address earnings in the first-half to return the unit to profit. The restructuring is expected to cost $270,000.

The company didn't forecast annual earnings, saying "with continued global market uncertainty it still remains imprudent to provide guidance on the level of growth we might achieve."

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fossils: Ancient Penguins Lived Alongside Dinosaurs?

Penguins are much older than previously thought and their evolution probably dates back to the days of the dinosaurs, according to research on the fossilised leg bone and toes of a giant ancient penguin found in rocks near Waipara, North Canterbury. More>>

No Voda/Sky: Commission Declines Clearance For Merger

The Commerce Commission has declined to grant clearance for the proposed merger of Sky Network Television and Vodafone New Zealand. More>>

ALSO:

EARLIER:

Power: IEA Report On New Zealand's Energy System

Outside of its largely low-carbon power sector, managing the economy’s energy intensity and greenhouse gas emissions while still remaining competitive and growing remains a challenge. More>>

ALSO:

NASA: Seven Earth-Size Planets Around A Single Star

NASA's Spitzer Space Telescope has revealed the first known system of seven Earth-size planets around a single star. Three of these planets are firmly located in the habitable zone, the area around the parent star where a rocky planet is most likely to have liquid water. More>>

ALSO:

Auckland Transport Case: Men Guilty Of Corruption And Bribery Will Spend Time In Jail

Two men who were found guilty of corruption and bribery in a Serious Fraud Office (SFO) trial have been sentenced in the Auckland High Court today... The pair are guilty of corruption and bribery offences relating to more than $1 million of bribes which took place between 2005 and 2013 at Rodney District Council and Auckland Transport. More>>

ALSO:

Hager Raid: Westpac Wrong To Release Bank Records To Police

The Privacy Commissioner has censured Westpac Banking Corp for releasing without a court order more than 10 months of bank records belonging to the political activist and journalist Nicky Hager during a police investigation into leaked information published in Hager's 2014 pre-election book, 'Dirty Politics'. More>>

ALSO:

EARLIER:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news