Methven profit down 15pc

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Methven reported a 15 percent fall in half-year net profit as the company worked to reduce its debt levels.

The listed tapware manufacturer's results for the six months to September show profit of $4.2 million, 15.4 percent down from the $4.95m reported in the same period last year.

Earnings before interest, tax, depreciation and amortisation (ebitda) fell 11.5 percent, from $9.6m to $8.5m while operating revenue was also down 5.1 percent, from $71.8m to $68.1m.

Chief executive Rick Fala said the results beat Methven's own forecasts put forward in July and said net debt had been reduced by 47.4 percent, from $35m last year to $18.3m.

The company's debt position benefits by $3.5m due to a currency translation between the New Zealand dollar and British pound sterling.

Fala said the group was making good progress with an initiative to fit its Satinjet shower products in hotels and leisure outlets and resources had been deployed to the UK and Asia to focus on the hotel business.

"Given the breadth of bathroomware products from premium through to value available under Methven brands, we now have a compelling offer to take to plumbing distributors in new markets," said Fala.

The group is paying out a fully imputed 5.5 cents per share interim dividend.

Chief financial officer Deidre Campbell said the group still expected full year net profit after tax to be down 15 to 20 percent on last year's profit.

The company was also looking to continue reducing its debt levels and had "tactical plans" in place to increase markets, channels and product ranges.

- © Fairfax NZ News