Methven shares fall 2.3% after CEO Fala flags September exit
Rick Fala leaves after 15 years in charge and will stay on the board as an independent director.
Shares in Methven fell 2.3 percent after chief executive Rick Fala will leave the tapware manufacturer in September.
The shares fell 3 cents to $1.30, matching its lowest level this year on March 11.
Mr Fala leaves after 15 years in charge and will stay on the board as an independent director. His decision to stay comes after Methven implemented a plan to link directors' fees to lifting profit.
Last month, Methven cut its forecast annual profit to be less than last year's $6.5 million and a survey of five analysts compiled by Reuters give a median expected profit of $6 million in the year ended March 31.
That is forecast to rise to $8 million the following year, an increase of 33 percent and beating the 20 percent target to lift directors' fees.
"It has been a privilege to have been part of an inspired team that has sought to turn this business into a global operation," Mr Fala says in a statement.
"It is the right time now to hand over the operational reins to fresh leadership and head in to a new phase of my career supporting Methven and other enterprising New Zealand businesses to achieve their potential on the local and international stage."
Methven was awarded a technology and development grant this month by Crown entity Callaghan Innovation. The grant makes the company eligible for a 20 percent rebate on research and development expenditure of up to $20 million over three years.
The stock is rated an average 'outperform' based on five analyst recommendations compiled by Reuters, with a median target price of $1.45.
(BusinessDesk)
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Methven shares fall 2.3% after CEO Fala flags September exit
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