Methven predicts 90% profit jump
Luxury shower and tapware designer Methven (NZX:MVN) has predicted a 90% year-on-year profit improvement despite a “difficult” economic climate.
Luxury shower and tapware designer Methven (NZX:MVN) has predicted a 90% year-on-year profit improvement despite a “difficult” economic climate.
Methven’s profit in the year to March 31 was down 39% to $4.7 million, largely due to a $2 million charge after its largest UK customer, Focus (DIY) entered voluntary administration.
Today Methven forecast its profit for this financial year would bounce back to $9 million, up 90% (up 27% excluding the impact of the Focus (DIY) charge).
Methven chief executive Rick Fala, said turnaround initiatives put in place in the UK last year, along with wider group operational efficiency improvements, would ensure the company achieved significant profit uplift over the next 12 months.
“Despite a difficult year, particularly in the UK, we are still in a solid financial position. Since fully providing for the loss of Focus (DIY) last year, we have successfully negotiated settlement with the administrator of 55 pence to the pound.
“That cash settlement is in the bank – our bank. More importantly, we embarked on an aggressive UK turnaround strategy mid last year. This led to the appointment of our new Methven UK CEO Steve Lee in November 2010.”
Mr Fala said Methven had received encouraging feedback from international tradeshows this year, including London, Frankfurt and Shanghai.
Results had been pleasing and indicated that brand recognition was improving and leading to distribution opportunities that the company was pursuing.
He said Methven would continue investing in design and innovation as the platform to enable expansion across all international markets.
“We are as committed as ever to design and innovation – and after increasing investment 50% last year – we will continue to invest in expanding our portfolio of proprietary products."
Niko Kloeten
Fri, 22 Jul 2011
Fri, 22 Jul 2011
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Methven predicts 90% profit jump
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