Methven Focuses on Delivering Growth

Media Release 30 July, 2013

Methven Focuses on Delivering Growth

Leading New Zealand shower and tapware designer Methven Limited [MVN] today announced that despite the ongoing tough conditions, the company remains focused on growth and sustainable shareholder returns.

Addressing shareholders at today’s Annual Meeting, Chairman Phil Lough said that through prudent cost management, Methven has delivered a result that is sustainable in current market conditions. “While we saw improvements in New Zealand, these were offset by further challenges in our UK business, resulting in turnover and profits down 7.3% and 20.3% respectively. It is not a result we are happy with, but in these conditions we have managed to maintain the underlying health of the business,” Mr Lough said.

“The previously reported increase in debt level has now returned to normal and the business remains comfortably within bank facility limits and covenants.”

With the business in sound shape, the team are now focused on delivering top and bottom line growth. “The recently announced acquisition of premium Chinese tapware and valve manufacturer, Invention Sanitary, will ensure that our products are internationally competitive,” outgoing Group CEO Rick Fala said. In addition, the company will maintain its investment in R&D, refreshing its product range, and launching a breakthrough shower technology in 2014.

“By reinvigorating our marketing efforts, we will be able to better leverage our strengths in design and supply to drive top line growth,” Mr Fala said. “This will become a major focus of the business moving forward.”

With Rick Fala stepping down, the company is in the final stages of recruitment for a new Group CEO with a proven track record and specific expertise in international marketing and brand development. Mr Lough added that the Board has a continued positive outlook and confidence to grow the business and deliver returns to shareholders.

“We are targeting solid sales and Net Profit After Tax growth for the first half and full year of 2013/14,” Mr Lough said.

“We’ve demonstrated a strong ability to handle the decline of the building and renovation sector that has ensured ongoing profitability and the ability to invest in the future.” “We are determined to build the revenue line back in Methven. This is our principal task and is what we will be reporting in the future.” For more company information, visit www.methven.com

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