Methven first-half profit based on old balance date rises 20%, will pay 3 cent special dividend

Monday 9th November 2015

Methven, the NZX listed tap and shower manufacturer and exporter, said first-half profit rose about 20 percent, based on its old balance date, and it will pay a fully-imputed special dividend of 3 cents a share.

The company has changed its balance date to June 30 from March 31 and wasn't expected to post first-half results until February next year. However, chief executive David Banfield said the company wanted to update the market "on our first six months' performance in this transition year to ensure that up to date top-line information was available for current and prospective investors."

The Auckland based company didn't give full actual numbers for the 'transitional' first half. Sales grew 7.8 percent in the six months ended Sept. 30 and the results for the period were in line with its goal of lifting annual revenue to $130 million by June 2018 and targeting profit that amounts to 10 percent of revenue, it said.

"These results are in line with this plan and our full-year guidance," chairman Phil Lough said.

Separately, Methven said its dividend policy is a pay-out ratio of between 70 percent and 90 percent of net profit, after taking account of significant one-time items that affect profit, the company's operating earnings and cash needs, investments, debt covenants and other relevant economic factors.

Methven posted full-year profit of about $5.7 million for the year ended March 31, in line with guidance, and said it was "cautiously optimistic" about the outlook. In July, it told shareholders at its annual meeting that it had a three-year plan to lift profit to 10 percent of revenue from 5.9 percent in the next three years.

Methven shares last traded at $1.06 and have fallen 29 percent in the past two years. The stock is rated a 'hold' based on two analysts surveyed by Reuters.

BusinessDesk.co.nz

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