Methven profit down on weak Australian trading, acquisition costs

Methven, the tapware maker whose board agreed to link director fee increases to earnings growth, has lowered its expected annual profit on weak trading across the Tasman and costs arising from a potential purchase.

The Auckland-based company expects reported and normalised profit in the year ending March 31 to be lower than last year, when it posted a net profit of $6.5 million. It had previously forecast growth in net profit and lower net debt.

The company blamed the downgrade on “continued weak Q4 trading conditions in Australia, combined with unbudgeted costs for a potential acquisition opportunity.”

The shares were unchanged at $1.48 in trading today, and have gained 8 percent this year.