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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news