Methven profit down on weak Australian trading, acquisition costs
Feb. 28 (BusinessDesk) - Methven, the tapware maker whose board agreed to link director fee increases to earnings growth, has lowered its expected annual profit on weak trading across the Tasman and costs arising from a potential purchase.
The Auckland-based company expects reported and normalised profit in the year ending March 31 to be lower than last year, when it posted a net profit of $6.5 million. It had previously forecast growth in net profit and lower net debt.
The company blamed the downgrade on "continued weak Q4 trading conditions in Australia, combined with unbudgeted costs for a potential acquisition opportunity."
The shares were unchanged at $1.48 in trading today, and have gained 8 percent this year.