KEY POINTS:
Skellerup Holdings has reported a 60 per cent increase in annual net profit after tax to $14.7 million, including a one-off gain on the sale of assets of $2.1m.
The profit, which the company attributed in part to the strong dairy industry, was achieved on a 6.6 per cent revenue increase to $205.4m. A six cent a share final dividend was declared payable on October 24.
Earnings before interest, tax, depreciation and amortisation rose 36.8 per cent in the year to June 30 to $35.2m.
"It is a pleasure to be able to report such an improved result despite the uncertain economic times experienced during the second half of the year - and both domestically and globally in the new financial year," said company chairman Sir Selwyn Cushing.
The board said it was confident the company could deliver an after tax profit in the vicinity of $13.5m next year, which compared with the $12.6m achieved this year if the $2.1m one-time gain is deducted.
The company, which has supplied farmers with gumboots and other products since 1910, said it was focusing on its business in technical polymer products.
"Our divestment in April of several non-core businesses was a key part of this strategy. Skellerup now has a platform for growth as a globally recognised, competitive supplier of specialist production technologies and capabilities within its technical polymer niche," said Cushing.
The company raised $21.1m in March and has reduced bank debt.
Chief executive Donald Stewart said the latest year's performance was boosted by the growing strength of the worldwide dairy industry and the achievement of synergies in the industrial division through the integration of Tumedei SpA, acquired in the previous year, into Gulf Rubber.
The tightening economy - both within New Zealand and internationally - would undoubtedly bring challenging trading conditions over the remainder of this financial year.
Prospects for the dairy industry continued to be positive.
Ongoing consolidation and streamlining was planned for the company's industrial division.
- NZPA
