Skellerup says first quarter earnings up 10%, expects improvement in 2018
By Sophie Boot
Oct. 25 (BusinessDesk) - Skellerup Holdings shares rose after the industrial rubber goods maker said first-quarter trading had been strong and it expects improved earnings in 2018.
Trading for the three months ended Sept. 30 was strong, generating earnings before interest and tax more than 10 percent ahead of the comparable quarter in the prior year, chair Liz Coutts said in a statement ahead of the company's annual meeting this afternoon. "However, experience tells us it is too early in the year, given the seasonal nature of our business for us to provide any further guidance," she said.
The shares gained 1.2 percent to $1.72.
Chief executive David Mair said Skellerup continued to make gains across its industrial division particularly in potable water applications and had seen improved demand for its dairy rubberware and footwear products.
In the year to June 30, 2017, the company lifted profit 8 percent to $22.1 million, at the top end of its forecast. It reaped the benefits from refocusing its industrial unit away from the volatile oil and iron ore industries and into the potable water market, while its agri unit saw increased demand as dairy product prices improved.
Chair Coutts took over the role at the beginning of the year, replacing Selwyn Cushing who stepped down after 10 years heading the board. Cushing will retire as a director following today's AGM, having first become a director in 1986. The Cushing family's H&G is Skellerup's biggest shareholder with about 7.3 percent of the stock, and shareholders will vote on David Cushing's appointment to the board at today's meeting.
Director Ian Parton also retires from the board today.