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Hot Topic NBR Focus: GMO
Hot Topic NBR Focus: GMO
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Methven aims to hold annual dividend, increase profit

Methven Ltd told its shareholders today that it is aiming to hold annual dividends at current levels and it expects a "reasonable" lift in net profit this year.The luxury showerware maker is experiencing strong growth in the Australian market an

NZPA
Thu, 22 Jul 2010

Methven Ltd told its shareholders today that it is aiming to hold annual dividends at current levels and it expects a "reasonable" lift in net profit this year.

The luxury showerware maker is experiencing strong growth in the Australian market and modest gains in the New Zealand market.

"We're picking a creditable improvement in profitability for the full year, holding net debt to current levels, even after an anticipated increase in debt of 15 to 20 percent at half year due to planned capital expenditure for growth," chairman Phil Lough told shareholders at the company's annual meeting in Auckland.

"Given the uncertain economic outlook in key markets, especially the United Kingdom, and the stop-start nature of the recovery domestically, it would be foolhardy of me to put a number on it. But I can say we are confident that we are looking at a better result and will update you when we report our six monthly results later in the year."

He said the company aimed to hold annual dividends at current levels.

Australia would be the dynamo for growth again, with Methven winning market share and sales in the tapware sector and introducing new top-end Satinjet showerware to refresh its range.

"We're not banking on any huge recovery in the New Zealand economy. Instead we'll extend our market leadership with the release of new bathroomware technology and solutions to keep customers interested," he said.

The company was investing in new technology and in developing leadership skills. It had identified the hotel sector as a growth market.

Group net profit after tax fell 17.5 percent to $8.3 million in the year to March 31, before impairments. The company paid full year dividends of 11 cents a share in that year.

The company said in its annual report that it weathered the fallout of the global economic crisis with a design-led product, innovation and market diversification.

NZPA
Thu, 22 Jul 2010
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Methven aims to hold annual dividend, increase profit
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