Sharechat Logo

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

Tuesday 9th April 2013

Text too small?

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.

BusinessDesk.co.nz

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Methven confirms earnings recovery with 21 percent gain in first-half profit
First NZ raises target price on Methven on earnings growth from Chinese acquisition
Methven expects revenue, profit growth this year after a decline in 2013
Methven agrees to buy Chinese manufacturer to improve margins, profits
Methven FY profit falls 20 percent on weak Australian market, still mum on acquisition
Methven profit down on weak Australian trading, acquisition costs
Methven first-half profit falls 27%, missing target, on unprofitable UK unit
Methven links hikes in directors' fees to meeting profit growth targets
Methven
Methven profit meets forecast as sales drop 13%, FY dividend unchanged