Skellerup upgrades earnings forecast, sees 18% first half lift

Skellerup enjoyed very strong trading conditions over the first half. Photo / File

Shares in Skellerup rallied sharply after the specialised rubberware manufacturer said it now expects its first half net profit to increase by 18 per cent to around $23 million.

By mid-morning, the stock was up 34c or 5.6 per cent at $6.40.

At last year's annual meeting, the company said demand remained strong across the group and that it expected its net profit for the six months to December to be in excess of 10 per cent over the previous corresponding period.

"This demand was sustained throughout the first half particularly for our potable water, marine, roofing and construction products," chair Liz Coutts said today.

"As a result, we now expect net profit after tax for the six months ended 31 December 2021 to be circa $23 million, up 18 per cent pcp," Coutts said in a statement.

The company's first half report is due on February 17.

Skellerup, best known for its "Red Band" gumboots, reported a record $40.2m net profit for the June 2021 year, up 38 per cent over the previous year, driven mostly by a strong showing from its industrial division.

Annual revenue came to $279.5m, up 11 per cent from a year earlier.