After Methven Ltd, a New Zealand maker of taps and shower-heads, confirmed that its full-year profit might fall as much as 20 percent, it has experienced its biggest drop in
10 months in Wellington.

At 12:55 p. m. in Wellington, the stock fell 9.2 percent to NZ$1.29.

The maximum pressure, as of now, is on the margins and profits in the U. K that might lead to a decrease in earnings of as much as 25 percent in the six months through Sept. 30.

Back in July 2007, U. K.-based Deva Tap Co. was bought by Methven for NZ$59 million ($39 million), with the aim of increasing sales in Europe, and tripling its potential market to 85 million people.

Chief Executive Officer Rick Fala said: "The U. K. is in a deep recession which could squeeze profits in an intensely competitive market."

He added; "No one expects 2009-10 to be easy with extremely challenging trading conditions in all markets. The company is implementing cost cuts, freezing salaries and cutting directors' fees to reduce expenses."

A rise in the net income of the company was seen by 3.1 percent to NZ$10.1 million in the year ended March 31.

Methven, which is predicting a 20 percent drop in net debt by March 31, 2010, hopes to maintain its dividend payment.