Skellmax Industries prospectus forecast met

Skellmax Industries has met its prospectus profit forecasts for the year, reporting a net profit after tax of $12.59 million in the year ended June 30. The maker of dairy vacuum pumps and red band gumboots predicted a $12.44 million profit for the period when it listed in June last year.

The company further distanced itself from plastics manufacturer Vertex, which listed around the same time and missed prospectus forecasts, by saying dividends were as promised. The final dividend of 4c a share, payable on October 24, took total dividends to 7c a share for the year, which was the prospectus forecast. The company's policy is to pay out between 40 per cent and 60 per cent of profit after tax in the future. The company's shares peaked at $1.24 last month, above the $1.15 issue price and the low of 91c reached in the months after listing.

Skellmax said it was well placed to ride out the slowing domestic economy but could only forecast a result in line with 2003 next year. "Skellmax will continue to pursue growth opportunities, both organic and through acquisition, within global niches related to technical rubber products and industrial vacuum pumps, together with the Australian general rubber goods and rural distribution markets," said managing director Donald Stewart.