Investors: Skellmax top-heavy

By ELLEN READ

The board of Skellmax Industries came under mild fire from shareholders yesterday who questioned the company's number of directors.

The rubber-products manufacturer has a board of six - one executive director and five non-executive - which some investors consider too large.

One pointed out that the country's largest listed company, Telecom, had recently appointed an eighth board member.

"I have a different personal view," chairman Keith Stewart told the meeting.

"It's more than likely we'll be looking for at least one more director in the next 12 months."

He acknowledged shareholder concerns at the number of non-executive directors and said that would be considered when appointing a seventh board member.

There was also concern at the timing of Skellmax's dividend payout. Most companies with a June balance date pay dividends by the end of September or in early October. Skellmax made the payment this week, leading one shareholder to ask for the date to be brought forward next year. Stewart said the idea would be considered.

Mild quibbles aside, shareholders seemed pleased by news the company expects to post a stable profit for the current financial year (last year's was $12.6 million) and to achieve growth in the medium to long term.

Stewart said the planned factory in China, organic growth and acquisitions would provide growth opportunities for the company.

There were no particular acquisitions in mind, but the company would concentrate on domestic and Australasian opportunities.

The China facility will be up and running from the middle of next year and will manufacture for export, rather than targeting the local market. It will employ 100 workers and be run as a unit of the Christchurch manufacturing base.