Methven confirms earnings recovery with 21% gain in first-half profit
Methven [NZX: MVN], the tapware maker, has confirmed the earnings recovery it flagged in July, posting a 21 percent jump in first-half profit on a pickup in trading in New Zealand and the UK.
Profit rose to $2.8 million in the six months ended Sept. 30 from $2.3 million a year earlier, the Auckland-based company said in a statement. It didn't provide sales figures in its market update, which comes ahead of its official earnings release.
Methven shares jumped about 5 percent to $1.48 on the news. The manufacturer cut net debt by 25 percent to $14.4 million from a year earlier and down 16 percent from March.
The return of the UK business to a positive first half EBITDA, from a loss in the prior year, and improving trading conditions in New Zealand, have been the main reasons for the substantially improved results to last year," chief executive Rick Fala said.
"We are pleased with the improvement in our business performance and are confident we can maintain this positive momentum into the second half," he said.