1 Dec 2009

Methven looks to Australasian markets

7:25 am on 1 December 2009

Methven expects trading conditions in its British markets to remain fragile in the coming year and is pinning hopes on a continued recovery in Australia and New Zealand.

The listed tapware maker made a profit of $4.2 million in the six months to September, a decrease of 15% on the same period last year.

Methven chief executive Rick Fala says the depressed British market has put pressure on margins, and earnings fell 30% to Stg 900,000.

Mr Fala says the fickleness of global markets makes it hard to predict what the company's full year results will be, but its profit is likely to be 15% to 20% below last year's result.

Sales of Methven's new HomeSpa beauty range are exceeding expectations, he says, and it will launch a new line of tapware, which focuses on water and energy efficiency in June.

Mr Fala says he hopes uptake of the range will be strong, as the building sector picks up in New Zealand and Australia.