Sharechat Logo

Methven shares drop to 15-month low on profit warning

Tuesday 16th May 2017

Text too small?

Methven shares fell to a 15-month low after the company said it expects annual profit will fall by as much as 15 percent after steady investment didn't deliver the anticipated growth for the listed shower and tapmaker. 

The Auckland-based company's earnings downgrade follows an earlier warning at the first half result when Methven said it expected annual profit to rise at the lower end of earlier guidance for profit to rise by between 10-and-20 percent in the year ending June 30, from $8.6 million a year earlier. 

The shares sank 11 percent to $1.10, the lowest since February last year, and valuing the company at $80.8 million. 

"Methven has changed its guidance due to forecasted growth in the second half not materialising as expected, despite continued incremental investment to deliver long term sustainable growth," chief executive David Banfield and chief financial officer Deidre Campbell said in a statement. "Methven continues to actively work on projects that support delivery of its Methven 130 goals, including the addition of new international distribution partners."

The manufacturer increased first-half profit 27 percent with its core Australasian businesses more than offsetting a decline in China, where it introduced a business model focusing distribution in Shanghai, Shenzhen and Guangzhou. 



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

NZ dollar eases on technical factors, buoyed by higher dairy prices
RBNZ eyes Westpac Australia money laundering failures
Heritage buys Golden Healthcare; not mystery Metlife suitor
Alliance margins improve as swine fever boosts global meat prices
RBNZ eyes Westpac Australia money laundering failures
Precinct eyes new developments as Commercial Bay keeps to revised schedule
End to Tower's three year dividend drought in sight
Vital Healthcare's manager appoints new independent director
Argosy lifts first-half profit 15.2% on valuation gains
Metlifecare attracts 'credible' bidder after biggest trading day in 2 1/2 years

IRG See IRG research reports