30 May 2011

Methven profit down

12:04 pm on 30 May 2011

Methven's full year profit fell by almost 40% after it lost its largest UK customer.

The showerhead and tap maker made $4.7 million in the year to the end of March, 39% less than in the previous year. Sales fell 6% to $122 million.

Methven's largest UK customer, Focus DIY, went into voluntary administration during the year, costing the company $2 million.

If that loss is stripped out, underlying profit fell almost 14% to $6.7 million.

Chief executive Rick Falasays it's been a challenging year for Methven.

He says the Christchurch earthquakes also dampened domestic sales during the year.

Methven expects profit in the current financial year, to be 25% higher than this year's underlying profit.

It has declared a final dividend of 4.5 cents per share, 1c less than last year.

Shares in Methven, which was included in the NZX50 index in March, rose 1c to $1.42 on Monday.