Methven Outlines Plans for Future Growth

Methven Outlines Plans for Future Growth

New Zealand’s leading shower and tapware designer Methven held its Annual Shareholder Meeting this morning in Auckland. Chairman Phil Lough told shareholders that Methven had experienced positive earnings growth throughout the year and had made significant investments designed to support future top line growth.

Net profit after tax for the year ended 31 March 2015 was up 20.9% and, on a like-for-like currency basis, up 22.6%,” said Mr. Lough who cited solid performances in the UK and Australian markets driving the profit growth, along with the earnings contribution from Methven Heshan, the Chinese manufacturing business Methven acquired at the start of the year. Mr. Lough noted that while reported Group sales revenue was down 0.4 % on the prior year, on a like-for-like currency basis, it was up 0.7%. He said “To have stopped the declining revenue trend of prior years, whilst increasing profit and investing in the future is an important milestone.”

Today’s meeting was also an opportunity for Methven Group CEO David Banfield to review progress against the three-point plan he outlined at last year’s Annual Meeting.

Mr Banfield told shareholders that Methven had invested $3.9 million in future-focused projects during the year. “We launched our new patented shower spray, Aurajet® and industry-first, lead and heavy metal free tapware into our global markets and received excellent customer and consumer response. We are delighted that these new products have already been nominated for design awards in Australia and Germany after only 3 months.” Methven’s new website and digital strategy launched in December 2014 is also showing promising results, with more visitors in the six months since launch than in the

whole of the previous year. “This is a key capability for the future as more consumers look to research online prior to purchase and it also lets Methven tell its compelling story in new international markets,” he said.

At the meeting, Mr Banfield shared Methven 130, its three year strategic plan. This plan aims to grow sales from $96 million to $130 million by 2018 and Net Profit After Tax towards our longer term target of 10% of revenue. The plan is supported by focus on 7 strategic pillars designed to position the business as an authoritative leader in showers, taps and valves. He said “we are pleased to share the Methven 130 plan with our shareholders today as it sets clear focus and aspirations for the business over the coming years as we look to deliver long term profitable growth”.

In 2016, Methven will also celebrate 130 years of exceptional Kiwi design, innovation and manufacturing capability. It is therefore particularly fitting that on its anniversary Methven will move to its new purpose built head office and manufacturing site in Auckland continuing its proud Kiwi legacy.

Looking ahead Mr Banfield said for the year ending 30 June 2016 the Group is on track to deliver revenue growth of 5% or above, NPAT growth of 15-25% and net debt reduction.

ENDS

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