[QUOTE=percy;381860]One of your better come backs .....sunny spring day in Chch is it and all full of the joy of life eh
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While on holiday in th UK , was dragged around the big homeware stores by the other half (B and Q, homebase etc)
Couldnt move for taps and bathroom fittings , massive competition in that space, hard to see how a company in
NZ would have any competitive advantage
It won't be easy you are right, it will be hard, and it has been hard, but its a bigger market, and if you look at sales, almost the same as NZ, just on razor thin margins while they establish the business.
If we extrapolate the current data, just to get a ball park of potential, in NZ they have almost half the market, $35m in sales, so if we assume in the UK tapware is based on the same spend, maybe higher maybe lower, and population is 60m, then total market is circa $1.2b. Methven have $20m sales in the UK currently, so maybe 1.5% of the market.
If they can grow to 10% of the UK market, ambitious, then revenues will be $120m in the UK alone, that doubles their current total revenue, and on 10% margins currently an additional $12m in profit.
The recent run was driven by ACC buying more, see the SSH notices, would add more if its fall back to sub $1.20, but for now happy to have got in during February, and have been paid a 6 cent dividend already with credits.
Needs a continuation
MAY 12; Positive Earnings Growth Delivers Dividend
With another tough year now behind us, confidence is high that we have the strategy, the team, the products and more importantly the resilience to thrive and prosper in tough economic conditions and deliver sustainable returns and growth to our shareholders.” Jeez that was a really tough year but we did bloody well didn't we but next year will be pretty good .... but we shouldn't really take a guess as to what the profit might be
July 12: Methven Focuses on Future Growth
AGm - repeats how tough it has been but “We have repositioned the business for the current economic climate and are now poised for growth. We confident that our products and point of difference can deliver continued positive earnings. However,it still remains imprudent to provide profit guidance on the level of growth we might achieve.” OK we still have our rose tinted glasses and hope is our strategy but we will do OK but better not guess how much
Sept 12: Half Year Profit Update
...., the first half NPAT is expected to be down on last yearbut things are getting by quarter so we will be OK come year end .... and by the way debt isn't coming down Whoops we cant say we can't guess ... we need to tell the bad news sorry guys
What do you think of the results...
Continuing the story
Nov 2012 Methven Maintains Profitability and Delivers Dividends .... interesting use of the word maintain ..... jeez we just avoided making a loss ..... just we said we would a few months ago .... but even though we can't really afford it we will still give you a divie .... and we remain committed (3 times they said that in half a page) to doing all the things to get a better result next time ..... but we won't be making any guesses this time around because we not very good at that
winner69.
thanks for another one of your "classic" posts.
Most enjoyable and right "on the money" as usual.
Thanks guys...much appreciated.