KEY POINTS:
Skellerup Holdings has confirmed earlier predictions of a 2009 full-year net profit of $13.5 million.
The rubber products manufacturer has factories in the United States, Britain, Italy, Vietnam, China, Australia and New Zealand, and says trading for the three months to the end of September had been in line with the board's expectations.
Chairman Sir Selwyn Cushing told the annual meeting of shareholders yesterday that the group had recorded a solid performance over the 2008 year.
A business restructure - aimed to strengthen its capability in manufacturing and distributing technical rubber products - had been completed, with satisfying results.
Net trading profit for the group grew by a substantial 37.6 per cent to $12.6 million.
Operating earnings were up 29.4 per cent at $33 million and group revenues increased by 6.6 per cent to $205.4 million.
Group net profit after tax, including the one-off gains from divestment of non-core businesses, was $14.7 million - an increase of 60.1 per cent on the previous year's result (before abnormal write-offs).
"These results for the year reflect not just improved performance, but also the benefits of our increase in focus on technical products within our niche," Sir Selwyn said.
"The group is well positioned to deal with any level of slowing in its markets that could be reasonably predicted."
This year also saw continuation of the trend towards a greater proportion of revenue from overseas sources. With just 34 per cent of revenue now coming from within New Zealand, and the remaining 66 per cent spread across markets in Australia, North America, Europe, South America and Asia, Skellerup was becoming less dependent on any single country market.
"The aim was to further spread our networks and firm up distribution channels to ensure truly global access to niche markets."
In March Skellerup was able to reduce net bank debt by $32 million and group net debt at June 30 was $74 million, compared with $106 million a year earlier.
The timing of the capital-raising exercise placed the group in a strong financial position before the tightening of the economic environment, Sir Selwyn said. A dividend of 6c a share was paid to shareholders (or reinvested) last Friday.
Shares closed yesterday down 1c at 79c.
- NZPA
