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

 

Wood Producers: Crisis In New Zealand Log Supply

New Zealand wood processing leaders held a hui with senior government officials and political leaders in Whangarei yesterday to assess the acute log supply shortage to local mills in Northland. More>>

Consents And Taxes: Trustpower 'Very Disappointed' With Judgement

Trustpower is "very disappointed" with a Supreme Court ruling dismissing its bid to claim tax deductions on $17.7 million of project costs in a case closely watched by large-scale infrastructure developers. More>>

ALSO:

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news