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

 


Methven shares drop as earnings growth stalls

Methven shares drop as earnings growth stalls

By Suze Metherell

Jan. 30 (BusinessDesk) – Shares in Methven fell after the tap-maker and distributer said annual profit growth won’t be as big as earlier hoped, with slower trading in December and January.

The shares dropped 4.9 percent to $1.35, and have declined 10 percent over the past 52 weeks.

The Auckland-based company expects net profit to remain flat or rise up to 10 percent from $5.2 million a year earlier, it said in a statement. It had previously said it was “cautiously optimistic” on sustaining the 21 percent rise in its first half result.

“Methven experienced softer than expected trading in December and January in Australasia, partly due to key customer stock reduction programmes,” it said in a statement.

“This appears to be one off in nature,” said Matthew Goodson, managing director at Salt Funds Management. “If a large chain, most likely in Australia, decides to reduce their inventory for a couple of months then it will have an impact on your sales and profits.”

The Auckland-based company distributes across New Zealand and Australia as well as to the UK. Its net income for the first half had risen to $2.8 million, as it continued to recover from tough economic conditions.

“Overall a positive trend for them continues, with strong construction here, in Australia and in the UK it should see strong growth,” Goodson said.

The company expected its net debt of $14.4 million as of Sept. 30 to remain unchanged. It had reduced its net debt 25 percent in the first quarter, compared to the same period a year earlier, after it had jumped 48 percent to $17.2 million in 2012 because of high stock levels in Australia.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news