30 Nov 2011

Methven looks to Asia for growth

7:06 am on 30 November 2011

Methven is looking to Asia for growth because it does not expect its traditional markets to improve in the near-term.

The listed shower and tapware maker reported a 25% fall in half-year profit on Tuesday. The fall was due to a rapid decline in building and renovation activity in Australia, and a slow residential construction sector in New Zealand.

Methven's chief financial officer Deidre Campbell says the rebuilding programmes resulting from the Queensland floods and Christchurch earthquakes will boost sales but that will not be until next financial year.

In the meantime conditions in New Zealand, Australia and the UK remain challenging.

With the traditional markets on a long, slow road to recovery, the company continues to look for growth in Asia, which has the highest construction rate for new hotels.

"We have got encouraging early signs following the Shanghai trade fair that we dispalyed at for the first time earlier in the year.

"So it's promising and encouraging and we will continue to follow and invest in developing that market," she says.