Strong second half drives increased profit for Skellerup
Highlights for the year ending 30 June 2017
o NPAT of $22.1 million up 8% on the prior year.
o Final dividend increased to 6.0 cents per share bringing the total
dividend to 9.5 cents per share for the full year.
o Improved earnings from both the Industrial and Agri Divisions.
o New dairy rubberware facility at Christchurch fully operational.
A strong finish to FY17 has lifted net profit to $22.1 million, up 8% on the
previous year.
CEO David Mair said the result reflected strong earnings growth in both
Skellerup''s Agri and Industrial Divisions.
"Over the past few years, our Industrial Division team have put a lot of work
into developing new products that meet clearly defined customer needs, with a
particular focus on the potable water market.
"Growing populations, changing weather patterns, ageing infrastructure and
increasingly stringent environmental standards are creating further
opportunities for us in New Zealand and abroad, and I am confident we have
the people and products to profitably capitalise on those opportunities,"
said Mr Mair.
Mr Mair said while the Industrial Division had increased EBIT by 12% from the
previous year, he was confident it was capable of further improvement in
FY18.
We have focused on improving our operational performance, and this work is
starting to show in our financial results," Mr Mair said.
Mr Mair said results from Skellerup''s Agri Division improved in the second
half of the year as global commodity prices improved. As a result, EBIT
increased by 6% from the previous year.
"Steady improvement in dairy commodity prices over the second half of the
past year resulted in farmers spending on deferred maintenance and increasing
milk production. This boosted earnings in both New Zealand and in our major
overseas markets. Current indications suggest that momentum is set to
continue."
Skellerup Chair Liz Coutts said Skellerup had a track record of organic
growth based on applying its technical expertise to create solutions for new
customers and in new markets.
The Board continues to support this process of continuous improvement, and we
also see potential to scale up some of our operations so as to gain the
benefit of size in some key markets," said Mrs Coutts.
Mrs Coutts confirmed that a final dividend of 6.0 cents per share, fully
imputed, would be paid to shareholders on 12 October 2017. This payment would
bring the total dividend pay-out for the financial year ended 30 June 2017 to
9.5 cents per share.
"A 6% increase on last year''s dividend reflects Skellerup''s consistently
strong earnings and cash flow, and is in line with the Board''s practice of
increasing dividends as profit growth allows," Mrs Coutts said.
Skellerup''s FY17 Annual Report and NZX Preliminary Announcement is also
attached.
For further information please contact:
David Mair
Chief Executive Officer
021 708 021
Graham Leaming
Chief Financial Officer
021 271 9206
For media queries please contact:
John Redwood
Senescall Akers Limited
021 581 234
Geoff Senescall
Senescall Akers Limited
021 481 234
End CA:00305648 For:SKL Type:FLLYR Time:2017-08-17 08:38:25