25 May 2015

Methven's full year profit rises 21%

1:57 pm on 25 May 2015

Shower and tapware maker, Methven, has lifted its full-year profit by a fifth.

The company made $5.7 million in the year to March, an increase of 21 percent compared with the previous year.

Chief executive, David Banfield, said the improvement was due to its China acquisition.

"It (the acquisition) secures a secondary manufacturing base for us, so we have manufacturing in New Zealand and we have manufacturing in China," he said.

He said its Chinese purchase pushed net debt up by 58 percent to $22.8 million, while it invested nearly $4 million in developing new products.

Looking ahead, Methven was forecasting profit growth of between 15 and 25 percent.

Methven would also move its reporting date to June next year, which Mr Banfield said would help its forecasting and predictability of results.

Revenue remained flat at $97 million, with modest gains in Australia and Britain, offset by lower sales in New Zealand due to customers running down their stocks and the high New Zealand dollar dampening returns.

Operating earnings rose 12 percent to $12.7 million.

It declared a dividend of 4 cents.