29 Nov 2013

Methven runs hot in Britain, Australia

7:13 pm on 29 November 2013

Tap and showerware maker Methven has increased its half year profit due to higher sales in Britain and Australia.

The company's after-tax profit for the six months to the end of September rose 21% to $2.8 million.

Outgoing chief executive Rick Fala said market conditions were finally improving after several difficult years.

"The turnaround in the performance of the business is primarily down to the improvement in our UK business. That's the one that's really been suffering over the last three to four years of the GFC (global financial crisis)," Mr Fala said.

"We've had to simplify that business and make it more streamlined but, pleasingly, the UK business actually grew their revenues around 4% in their domestic market.

"That, combined with the improvement in efficiency, meant there was a good turnaround and that underpinned our half-year profit improvement of around 21%."

However, the high exchange rates for the New Zealand dollar resulted in a 2% fall in operating revenues despite improved sales.

Methven will pay a higher dividend of 5 cents a share.

Mr Fala his job leaves at the end of the year, to be replaced by Briton David Banfield.