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

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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