Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Methven Charts Journey for Sustainable Growth

30 July 2014

Methven Charts Journey for Sustainable Growth

New Zealand’s leading shower and tapware designer Methven held its Annual Shareholder Meeting this morning in Auckland. Chairman Phil Lough said that while results for year-end 31 March 2014 were disappointing, Methven’s outlook remains positive.

“While we achieved modest revenue growth overall, when translated to NZ dollars revenue was down 1.7%. NPAT was down 8.6% from $5.2 million to $4.7 million and, excluding significant items, down 1.8% from $5.5 million to $5.4 million,” said Mr Lough.

Mr Lough said the underlying health of the business remains sound. “The decrease in debt of 16.1% from $17.2 million to $14.5 million and our cash flow strength highlights our sound control environment. The business remains profitable and financially sound and we are confident that we will continue to pay sustainable dividends.”

The meeting was an opportunity for new Group CEO David Banfield to address Methven’s shareholders for the first time since he took the helm in January 2014. Commenting on 2014 performance Mr Banfield said “Our current performance is not in line with our capability or expectations and actions are underway to address this.” Mr Banfield re-iterated that the business was financially sound with many existing strengths and is ready to embark on the next stage of its journey. “We are in the process of implementing a three point plan - 1; Thinking, acting like the market leader 2; putting consumer understanding and insight at the heart of the business and 3; delivering a clear three year strategic plan to ensure organisational focus and alignment.“ he said.

At the meeting Mr Banfield welcomed Methven Heshan to the Group, telling shareholders the move will further enhance Methven’s cost competitiveness, give Methven a more flexible supply chain and create an additional quality driven manufacturing base in China. Methven completed the acquisition of its Chinese manufacturer on 30 June and welcomed the team into the Methven Group. Confidence remains high that Heshan will contribute $2million US dollars per annum in incremental net profit after tax from September 2014.

Methven has committed to the final phase of investment in its next break-through showering system, which will be launched early in 2015. The system will be manufactured in New Zealand and consumer research shows that purchase intent with Australian consumers ranks New Zealand designed and made product second in the world after Australia. “We are aware of the importance of translating technology and product advantages into profitable top line sales growth.” said Mr Banfield. “This is our absolute focus.”

Looking forward, Mr Banfield told shareholders that aside from Invention’s contribution, the Group expects overall revenue and earnings growth to be modest in FY15. Mr Banfield said “We will reinvest incremental margin to build the brand further in our core markets, improve the retail experience, especially the online experience for our consumers, deliver new products and set the foundation for long term sustainable earnings growth.”

About Methven:
A pioneer in bathroom and kitchen plumbing for over 125 years, Methven is New Zealand’s oldest and largest designer of shower and tapware to builders, plumbers and home renovators. Today, Methven is a world-class international business with our proprietary technology, shower systems and tapware ranges earning a reputation for innovation, high quality, and water and energy efficiency. Methven has won prestigious design awards worldwide for the innovative functionality and water and energy saving aspects of our products including the prestigious Red Dot and Good Design Awards.

For more company information visit www.methven.com/nz

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Westpac NZ: Warns About Sophisticated New Scam
Westpac NZ is warning New Zealanders about a sophisticated new scam that involves a fake Westpac investment prospectus.
The prospectus is formatted to resemble a Westpac document and includes professional-looking imagery... More>>



Campaign For NZ Coastal Tankers : Says Fuel Security At Risk

Three unions representing New Zealand shipping crews are mounting a united campaign to protect New Zealand’s fuel security and save New Zealand coastal tankers... More>>



Tourism: Travel Bubble With Cook Islands Resumes

Cook Islands tourism restarts today, ending a five-month border closure due to COVID-19. Graeme West, General Manager Australasia for Cook Islands Tourism Corporation, said today’s first flight of quarantine-free travel from New Zealand to the Cook Islands is very significant... More>>


Insurance Council of New Zealand: September South Island Windstorm Cost $36.5 M Raises 2021 Extreme Weather Claims Total To $321.6 M

Gale force winds and storms between 9 and 13 September 2021 resulted in insurers supporting communities to the tune of $36.5 m. This is a significant rise, of $16.7 m, on preliminary figures for the event and lifts the end of year total for all extreme weather events in 2021 to $321.6 m... More>>


Statistics: Building Consents Hit New Highs In November
There were a record 48,522 new homes consented in the year ended November 2021, Stats NZ said today. This was up 26 percent compared with the year ended November 2020... More>>

Fonterra: Revises Milk Collection Forecast
Fonterra Co-operative Group Limited today revised the forecast for its 2021/22 New Zealand milk collections to 1,500 million kilograms of milk solids (kgMS), down from its opening forecast of 1,525 million kgMS... More>>