Downturn fading for Skellerup

Selwyn Cushing. Photo / NZ Herald

Farming products manufacturer Skellerup says the impact of the recession has eased in all its markets, with growth opportunities becoming apparent in both its agri and industrial divisions.

Skellerup this week announced a net profit of $9.8 million for the six months to December 31 - an almost 200 per cent increase on the prior comparable period. Revenue from continuing operations rose 13 per cent to $96.3 million.

Skellerup chairman Sir Selwyn Cushing said the profit performance reflected a marked improvement in trading conditions, as well as the investment the company had made into product development during the recession.

The firm's industrial division had recovered well from the downturn, he said, with revenue up 15.6 per cent.

"Increased cost recovery and improved efficiencies have influenced this result, together with increased demand over our broad range of industrial products ... particularly in the areas of industrial vacuum pumps, roof flashing and plumbing products into the North American and Australian markets."

Cushing said sales in the firm's agri division were up "a more modest" 8 per cent, as that business had not been as adversely affected by the recession as the industrial division.

The company noted that its share price had gained more than 130 per cent last year. Shares closed up 4c at $1.31 last night.