Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Skellerup profit jumps 69% to record, further gains forecast

Skellerup profit jumps 69% to record, further gains forecast; shares jump

Aug. 25 (BusinessDesk) – Skellerup Holdings Ltd. reported a 69% increase in annual profit to a record $20.2 million, on improved revenue and returns across its range of agricultural and industrial products, and said it sees further gains in the current year.

The company’s shares jumped 4.1% to $1.27 on the announcement, which was accompanied by the confirmation that David Mair, acting chief executive since April last year, will take the role permanently.

A presentation accompanying the NZX announcement signals the company is on the acquisition trail, saying opportunities will be “considered”.

Net profit in the current financial year is expected to improve again, to between $22 million and $23 million, as the company continues to claw back from a serious deterioration in performance during the global financial crisis.

“This year’s result is a particularly pleasing performance given the disruption the company has experienced in Canterbury,” said chairman Selwyn Cushing in a statement to the NZX.

The increased returns came despite relatively small increases in revenue, up 7.1% at $193.6 million. Sales of industrial vacuum pumps to the North American oil and gas industry, and investment by dairy farmers in capital equipment to maintain high quality standards helped sales of the agricultural division.

Industrial division sales of $125.5 million were up 7.6%, with new products selling well in the U.S. and Australia, while European sales were healthy despite the difficult trading conditions in that market.

Earnings before interest and tax from the division, which represents almost two-thirds of revenue, came in at $20 million, up 45.6%, while agricultural division sales of $69.0 million were 35.6% and ebit from the division rose 11.9% to $17.1 million, with margins comparable to last year but overheads reduced as a proportion of the increased revenue.

Also driving the result was a reduction in group debt from $26.9 million to $9.1 million, thanks to strong earnings growth. The Skellerup balance sheet is now lightly geared with a 7.6% ratio of debt to debt-plus-equity.

A 4 cents per share final dividend has been declared, payable on Oct. 21.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Air New Zealand: Flying Year-round To Popular Queensland Destinations

Air New Zealand is moving to year-round direct flights on its Auckland-Cairns, Auckland-Sunshine Coast and Christchurch-Gold Coast routes under an agreement with the Queensland Government... More>>

SEA: Another First For Solar Energy In New Zealand

The Sustainable Energy Association NZ (SEANZ) congratulates Sunergise on the commissioning of the Sunergise Kapuni Solar Power Plant, the largest in the country... More>>

Accenture: More Boomers Than Zoomers Want To Work From Home

While often associated with tech savvy Gen Z or Zoomers, new global research from Accenture shows that the push for more flexible working environments is being led by Gen Xers and Baby Boomers... More>>

Banking: Westpac New Zealand To Remain Part Of Westpac Group

Westpac New Zealand Limited (WNZL) remains part of Westpac Group following a decision for the two businesses not to demerge. Westpac Group Chief Executive Officer, Peter King, said: “After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>