Methven expects to recover $460k from Britain’s Focus

Shower and tapware manufacturer Methven says it expects to recover a net $460,000 by the end of June from its former largest British customer, Focus DIY which collapsed in May.

Methven provided for a $2 million loss from Focus in its accounts for the year ended March 31 for which it reported a 39.3% drop to $4.7 million.

Focus’ administrator has “confirmed an agreement whereby they are prepared to allow Focus” to pay Methven nearly 330,000 British pounds (NZ$658,297) plus British value added tax (VAT)

“In full and final settlement of all indebtedness to, and associated retention of title claims by, Methven,” the company told NZX.

Half the money will be paid on June 16 and the balance on June 30.

“We do not expect any further recovery and Focus is not expected to continue trading in its current form,” Methven said.

Methven shares closed yesterday at $1.48 and are being bid higher. The shares were trading at $1.56 before Focus’ collapse was announced, after which they fell as low as $1.35.

Source : Jonathan Underhill – Scoop Business New Zealand
http://business.scoop.co.nz/2011/06/09/methven-expects-to-recover-460k-from-britains-focus/