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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news