Methven still targeting growth in 2008-09

NZX/Media Statement 29 July 2008

Methven still targeting growth in 2008-09

Methven has told shareholders at today’s (29 July) Annual Meeting that the world class shower and tapware designer and manufacturer was still targeting earnings growth in 2008-09 despite testing trading conditions in all key markets.

“We have been tracking to plan for the first quarter of this year and, at this point, we still expect earnings growth in 2008-09,” Group CEO, Rick Fala told the meeting. “This is based on a full year’s contribution from our UK business, sustained growth in Australia and prudent cost controls across the Group which should offset anticipated further weakening in New Zealand and a softer UK market.

“But, we are cautious. The market is extremely tough and while we have cut our cloth to adapt to the climate we expect conditions will only get tougher in the short term.”

Mr Fala said that Methven was well placed to weather the economic downturn and grow strongly as conditions improved given its sound financial base, depth of capabilities, market diversification and unique proprietary offering of energy and water saving showerware, tapware and valving to meet different price points and segments of the market.

“We are well positioned to take on the future to drive growth and establish our brand worldwide.”

Shareholders passed all resolutions at the Annual Meeting, re-electing Phil Lough as a director to confirm his appointment as the new Methven chairman to oversee the next phase of its global growth strategy. Richard Cutfield, who has successfully lead the company for seven years of consecutive growth as chairman, will remain on the Board.

ENDS

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