Methven Annual Results FY14

Positive Outlook despite Disappointing Results

New Zealand’s leading shower and tap ware designer Methven Limited [MVN] has announced its annual results for the year ended 31 March 2014.

 Net profit after tax (NPAT) down 8.6% from $5.2 million to $4.7 million.

 NPAT excluding significant items.

 Earnings before interest, tax, depreciation and amortisation (EBITDA) excluding significant items decreased 7.1 % from $12.9 million to $12.0 million.

 Sales revenue increased marginally overall but was down 1.7% from $98.4 million to $96.7 million after conversion to NZ dollars.

 Partially imputed final dividend of 4.5 cps to be paid on 30 June 2014.
 New Zealand sales of $35.1 million were slightly above the previous year’s $34.9 million but below our expectation, negatively impacted by key customer stock reduction programmes.

 The United Kingdom division stabilised, delivering an EBITDA contribution of 1.1million) up from breakeven last year, mainly due to cost rationalisation and revenue showing dlight growth.

 Australian sales grew 5.8%, up from A$33.1 million to A$35.0 million, but significant margin decline was caused by a combination of currency weakness, competitive pricing pressure and supply chain/logistics cost increases.

 Purchase of Chinese premium tapware supplier/manufacturer Invention Sanitary remains on track for completion on 30 June 2014 and is expected to deliver US$2 million NPAT per annum

 Strong cashflow was generated to fund dividends and growth.

Ends