Methven first-half profit based on old balance date rises 20%, will pay 3 cent special dividend
The company wasn't expected to post first-half results until February next year.
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Methven [NZX: MVN], the NZX-listed tap and shower manufacturer and exporter, said first-half profit rose about 20%, based on its old balance date, and it will pay a fully-imputed special dividend of 3c a share.
The company has changed its balance date to June 30 from March 31 and wasn't expected to post first-half results until February next year. However, chief executive David Banfield said the company wanted to update the market "on our first six months' performance in this transition year to ensure that up-to-date top-line information was available for current and prospective investors."
The Auckland-based company didn't give full actual numbers for the 'transitional' first half. Sales grew 7.8% in the six months ended September 30 and the results for the period were in line with its goal of lifting annual revenue to $130 million by June 2018 and targeting profit that amounts to 10% of revenue, it said.
"These results are in line with this plan and our full-year guidance," chairman Phil Lough said.
Separately, Methven said its dividend policy is a pay-out ratio of between 70-90% of net profit, after taking account of significant one-time items that affect profit, the company's operating earnings and cash needs, investments, debt covenants and other relevant economic factors.
Methven posted full-year profit of about $5.7 million for the year ended March 31, in line with guidance, and said it was "cautiously optimistic" about the outlook. In July it told shareholders at its annual meeting that it had a three-year plan to lift profit to 10% of revenue from 5.9% in the next three years.
Methven shares last traded at $1.06 and have fallen 29% in the past two years. The stock is rated a 'hold' based on two analysts surveyed by Reuters.
(BusinessDesk)
Jonathan Underhill
Mon, 09 Nov 2015
Mon, 09 Nov 2015
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