KEY POINTS:
Shareholders in rubber products company Skellerup Holdings dipped out on a final dividend as one-off restructuring costs pushed down its June year profit 95 per cent.
It posted a bottom line profit of $637,000 against $13.4m a year earlier.
As flagged in June, the company took an abnormal charge of $17.9m from restructuring write-downs (including a larger than indicated $12.7m non-cash asset writedown). It also brought to book a net tax credit of $5m.
Its $9.2m pre-abnormals profit was down 31 per cent on a year earlier but in line with the June guidance.
The lower profit was despite a 22 per cent lift in revenue. Revenue rose as a result of a full year's contribution from Gulf Rubber plus 5.7 per cent "organic" growth.
Chairman Keith Smith said the decision not to pay a final dividend "recognises that the group is currently undergoing a strategic process that involves significant restructuring costs, and as a consequence it is prudent to ensure that adequate resources are available to support these initiatives".
Skellerup shareholders were prepared for the bad news. Its shares rose one cent to 92c. They took a dive when it announced its profit downgrade in June -- falling from $1.23 to 82c a month later.
Chief executive Donald Stewart blamed the high New Zealand dollar for the profit fall.
Skellerup has decided to focus on its industrial division which includes Deks Industries, Gulf Rubber and Italian-based Tumedei, purchased in May.
As a result, it is selling some non-core, but profitable businesses.
Indicative offers had been received to purchase businesses and will be considered over the next few weeks.
In addition, Skellerup said it would increase outsourcing of manufacturing that would "require a significant restructuring of our Christchurch industrial manufacturing facility".
In June it said it would lay off around 100 workers at its Woolston factory in Christchurch over 18 months.
Offshore revenue rose to 58 per cent from 62 per cent last year.
Industrial division revenue increased from 65 per cent to 71 per cent of the total as a result of recent acquisitions, strong performances from mining in Australia and Skellerup's construction businesses.
Gulf's operations in both Australia and New Zealand had exceeded expectations.
- NZPA
