Skellerup expects improved profitability
Skellerup expects improved profitability on strong industrial performance
By Paul McBeth
Oct. 24 (BusinessDesk) - Skellerup Holdings expects an improvement in profitability in the current financial year as its industrial unit benefits from a greater focus on water.
Chief executive David Mair told shareholders today that first-quarter earnings before interest and tax were more than 10 percent higher than the same period a year earlier. The rubber goods maker beat earnings guidance for the June year as water and wastewater sectors provided more stable growth for the firm's industrial unit than oil and gas.
"We expect an improvement in profitability in FY19 with increased earnings in our industrial division offsetting the recent softening in international dairy markets and the uncertainty surrounding international trade," Mair said.
Skellerup hasn't given formal earnings guidance. Analyst forecasts compiled by Reuters project ebit of $43.1 million on revenue of $257.2 million for the year ending June 30, up from ebit of $39.8 million on sales of $240.4 million last year.
The shares rose 1 percent to $2.11 and have gained 14 percent so far this year.
Skellerup's board approved a new long-term incentive scheme for Mair and chief financial officer Graham Learning. Mair will get one million options and Learning 600,000 options, priced at the 20-day volume-weighted price between Sept. 27 and Oct. 25. The options will have a two-year vesting period.