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


Methven Outlines Plans for Future Growth

Methven Outlines Plans for Future Growth

New Zealand’s leading shower and tapware designer Methven held its Annual Shareholder Meeting this morning in Auckland. Chairman Phil Lough told shareholders that Methven had experienced positive earnings growth throughout the year and had made significant investments designed to support future top line growth.

Net profit after tax for the year ended 31 March 2015 was up 20.9% and, on a like-for-like currency basis, up 22.6%,” said Mr. Lough who cited solid performances in the UK and Australian markets driving the profit growth, along with the earnings contribution from Methven Heshan, the Chinese manufacturing business Methven acquired at the start of the year. Mr. Lough noted that while reported Group sales revenue was down 0.4 % on the prior year, on a like-for-like currency basis, it was up 0.7%. He said “To have stopped the declining revenue trend of prior years, whilst increasing profit and investing in the future is an important milestone.”

Today’s meeting was also an opportunity for Methven Group CEO David Banfield to review progress against the three-point plan he outlined at last year’s Annual Meeting.

Mr Banfield told shareholders that Methven had invested $3.9 million in future-focused projects during the year. “We launched our new patented shower spray, Aurajet® and industry-first, lead and heavy metal free tapware into our global markets and received excellent customer and consumer response. We are delighted that these new products have already been nominated for design awards in Australia and Germany after only 3 months.” Methven’s new website and digital strategy launched in December 2014 is also showing promising results, with more visitors in the six months since launch than in the

whole of the previous year. “This is a key capability for the future as more consumers look to research online prior to purchase and it also lets Methven tell its compelling story in new international markets,” he said.

At the meeting, Mr Banfield shared Methven 130, its three year strategic plan. This plan aims to grow sales from $96 million to $130 million by 2018 and Net Profit After Tax towards our longer term target of 10% of revenue. The plan is supported by focus on 7 strategic pillars designed to position the business as an authoritative leader in showers, taps and valves. He said “we are pleased to share the Methven 130 plan with our shareholders today as it sets clear focus and aspirations for the business over the coming years as we look to deliver long term profitable growth”.

In 2016, Methven will also celebrate 130 years of exceptional Kiwi design, innovation and manufacturing capability. It is therefore particularly fitting that on its anniversary Methven will move to its new purpose built head office and manufacturing site in Auckland continuing its proud Kiwi legacy.

Looking ahead Mr Banfield said for the year ending 30 June 2016 the Group is on track to deliver revenue growth of 5% or above, NPAT growth of 15-25% and net debt reduction.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Digitl: Bumper year ahead for NZ IT sector

Gartner says New Zealand spending on technology products and services will grow 7.4 percent this year. The company’s latest forecast says the market will total NZ$15.3 billion in 2022... More>>

Fonterra: Lifts Forecast Farmgate Milk Price Range

Fonterra Co-operative Group today lifted its 2021/22 forecast Farmgate Milk Price range to NZD $8.90 - $9.50 per kgMS, up from NZD $8.40 - $9.00 per kgMS. This increases the midpoint of the range, which farmers are paid off... More>>

Federated Farmers: NAIT Levy Increases Must Achieve Accurate, User-friendly System
Nobody welcomes extra costs but if OSPRI is to catch-up on under investment in the NAIT platform and deliver on its workability and farmer support, levy increases are probably necessary, Federated Farmers says... More>>

Skoltech: Study Probes Earth’s Turbulent Past To Explain Where Oceans Came From

The origin of water on our planet is a hot question: Water has immense implications for plate tectonics, climate, the origin of life on Earth, and potential habitability of other Earth-like planets. In a recent study in Physical Review Letters, a Skoltech professor and his Chinese colleagues suggest... More>>

Statistics: Household Net Worth Grows In The September 2021 Quarter But At A Slower Pace Compared To March 2021

Household net worth grew by $60.7 billion in the September 2021 quarter compared with the June 2021 quarter, Stats NZ said today. This represents an increase of 2.5 percent, a similar result to the June 2021 quarter, which was up $60.6 billion or 2.6 percent... More>>

TradeMe: Job Market Ends 2021 On A High With Record Number Of Vacancies
The New Zealand job market finished 2021 on a high note, with the ball still firmly in the job hunters’ court, according to the analysis of 69,600 vacancies listed on Trade Me Jobs for the quarter ending 31 December (Q4)... More>>