Maytronics looks to Australia for growth

Profit fell 56% at the pool cleaning robot company.

Pool cleaner robot manufacturer Maytronics Ltd. (TASE:MTRN) today published mixed results for 2010. Although revenue rose 10% to NIS 231.7 million in 2010 from NIS 210.7 million in 2009, net profit fell 56% to NIS 11.8 million from NIS 26.8 million.

Adjusted net profit fell to NIS 5.2 million in 2010 from NIS 29.9 million in 2009.

Net profit fell to 5.1% of turnover in 2010 from 12.7% in 2009. Most of the drop was due to a NIS 12.7 million provision for goodwill following the acquisition of 48.3% of MG International SA (MGI), a French company that was in financial trouble, in 2008-09. Maytronics said that MGI grew 17% in 2010, and was "on the verge of cash flow break-even point" by the end of the year. MGI makes alarms and anti-drowning systems.

Maytronics's business is seasonal, and the fourth quarter is its weakest quarter. Fourth quarter revenue fell 13.4% to NIS 15.4 million and its net loss narrowed by 5.3% to NIS 19.2 million.

In order to even out the seasonal business cycle, Maytronics is looking to the Southern Hemisphere, setting up an Australian distribution subsidiary. Maytronics president Ofer Shahar said that the Australian market had many private swimming pools, and that there is great potential for robotic pool cleaners. He predicted that 2011 would be better than 2010.

Kibbutz Yizrael owns 67.2 of Maytronics. Maytronics' share price rose 4.8% today to NIS 2.85, giving a market cap of NIS 279 million.

Published by Globes [online], Israel business news - - on March 23, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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