23 Sep 2012

Profit downgrade erodes Methven share price

1:22 pm on 23 September 2012

Shares in bathroom fittings maker Methven have plunged by a tenth after the tap and showerware designer issued a profit downgrade.

The listed firm expects its first-half profit to fall by a fifth after accounting for one-off items, while its UK business continues to underperform in a tough market.

Methven fell sharply during the morning's trading on the NZX but recovered sufficiently to finish the day down only 12c at $1.35 by the close of trading - a fall of 8.16%.

Hamilton Hindin Greene director Grant Williamson says the company also had to downgrade its projected earnings last year.

The share price dropped as low as $1 last December and until now has made a good job of recovering.