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

 

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Warming: Warming Signs From State Of Climate Report

Climate data from air, land, sea and ice in 2013 'reflect trends of a warming planet' -- says the latest State of the Climate report, launched by U.S. and New Zealand scientists. More>>

ALSO:

Scoop Business: Embrace Falling Home Affordability, Says NZIER

Despair over the inability to afford a house is misplaced and should be embraced as an opportunity to invest in more wealth-creating activity, says the principal economist at the New Zealand Institute of Economic Research, Shamubeel Eaqub. More>>

Productivity Commission: NZ Regulation Not Keeping Pace

New Zealand regulators often have to work with out-of-date legislation, quality checks are under strain, and regulatory workers need better training and development. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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