29 Nov 2011

Methven half-year profit falls

8:12 pm on 29 November 2011

Half year profit for Methven is down by a quarter, due in part to a rapid decline in building and renovation activity across the Tasman.

The listed shower and tapware maker made $3.2 million in the six months to the end of September, 25% less than in the same period last year and in line with previous guidance.

Revenue fell almost 14% to $54.2 million.

Chief financial officer Deidre Campbell says an unexpected slump in Australian demand affected profits.

"We had originally anticipated that that market would just continue to grow and offset the

low levels in New Zealand. That was not to be and that's reflected in that result. Of course the UK remains depressed as well," she says.

She says conditions in Methven's main markets are not expected to improve in the near-term and full year profit is expected to be between $6 - $8 million.

Methven will pay an unchanged dividend of 4.5 cents per share.

Shares in the company rose 3 cents to $1.07 on Tuesday.