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Methven says FY profit fell about 21 percent on weak Australian trading

Tuesday 9th April 2013

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Methven, the tapware maker, says full-year profit fell about 21 percent on weaker trading in the Australian market. The shares fell to an 11-month low.

Net profit in the 12 months ended March 31 was about a fifth lower than the previous year's $6.5 million and profit before one-time items was about 12 percent lower, the Auckland-based company said in a statement. It first flagged weaker earnings, without being specific, in February.

"The continued decline in Australian market demand has resulted in our Australian business's second-half ebitda being down around 13 percent on the prior year, more than offsetting the first-half gains," outgoing chief executive Rick Fala said.

The company recorded a $300,000 full-year earnings before interest, tax, depreciation and amortisation loss from its China operations, compared to earnings a year earlier of $193,000. It also recorded $316,000 due diligence costs related to a potential acquisition, which it will provide more details on in May.

UK ebitda in the second half was about 200,000 British pounds, which will result in a break-even result in the full year. UK earnings were 300,000 pounds in the previous year.

In New Zealand, second-half ebitda was up about 5 percent, which resulted in full-year earnings growth of 7 percent, it said.

The shares fell 1.6 percent to $1.20, the lowest since May last year.

The company will release its audited results on May 29.

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