Forsyth Barr broker Andrew Rooney said the reported profit for the six months ending September, excluding $300,000 of non-deductible acquisitions, was $3.5 million, 35% ahead of the previous corresponding period and in line with his expectations.
Forsyth Barr was retaining its full-year reported profit forecast of $6.7 million.
Methven shares jumped about 5% to $1.48 on the news.
The manufacturer cut net debt by 25% to $14.4 million from a year earlier and down 16% from March.
''On a regional basis, Methven is targeting areas where it is clearly under-represented by product category.''
In Australia, where showerware accounted for 65% of sales and tapware 20%, Methven had launched tapware ranges to complement its showerware ranges.
In the United Kingdom, showerware represented only 20% of sales and Methven was targeting increased direct Satinjet sales through its website, he said.
Methven chief executive Rick Fala said the return of the UK business to positive first-half operating earnings, from a loss in the prior year, and improving trading conditions in New Zealand, have been the main reasons for the substantially improved results.
''We are pleased with the improvement in our business performance and are confident we can maintain this positive momentum into the second half.''
Mr Rooney said Methven had entered into an agreement to acquire the business and assets of Chinese tapware and valve manufacturer Invention Sanitary.
Invention was established 12 years ago to supply product exclusively to Methven.
Due to the impending retirement of Invention's founder and owner, Methven had exercised its first right of purchase.
In the second half, no new product platforms would be introduced. Instead, the strategy would be to refresh the existing product range, Mr Rooney said.
