Friday 22nd July 2011
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Luxury shower and tapware designer Methven is predicting its annual profit will be 90 percent above last year's result, at $9 million.
In the year to March 2012 it expected a return to profit for its British division which reported an ebitda (earnings before interest, tax, depreciation and amortisation) loss of Stg991,000 ($NZ2,202,121) in the latest year.
Last year's result included a $2m loss from Methven's largest British customer Focus (DIY) entering voluntary administration. Net profit for the year to March 2011 was $4.7m, or $6.7m when the Focus (DIY) loss was excluded.
If the Focus (DIY) impact is excluded, the expected rise in profit for the current financial year would be 27 percent.
Methven chief executive Rick Fala told the company's annual meeting today the significant rise in profit in the current financial year followed turnaround initiatives in Britain, along with wider group operational efficiency improvements.
Following the loss of Focus (DIY), Methven had negotiated settlement with the administrator of 55p to the pound. That settlement was in Methven's bank, Fala said.
Strategies to expand the British business had been accelerated, with 13 new Methven showroom stockists confirmed and more in the pipeline.
Methven shares were up 5c to $1.52 at lunchtime.
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