Methven profit falls about 21% on weak Australian trading
The tapware maker's shares slip to an 11-month low.
Methven, the tapware maker, says full-year profit fell about 21 percent on weaker trading in the Australian market. The shares slipped 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 says 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 says.
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, which will result in a break-even result in the full year. UK earnings were £300,000 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 says.
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)
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Methven profit falls about 21% on weak Australian trading
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