Shares in Skellerup Holdings soared yesterday after the company reported full year earnings of $14.7 million.
The announcement pushed the share price up 8c, or 8.4 per cent, at one stage before easing slightly to close at $1.01. The result marked a turnaround for the company, which last
year made a loss of $2.4 million because of one-off restructuring costs of $17.9 million.
Skellerup has a number of operating subsidiaries, mainly in the rubber products and vacuum pump sectors. It is, however, perhaps best known locally as the maker of Red Band gumboots.
Revenue was up 6.6 per cent to $205.4 million - with overseas markets making up two-thirds of total income. Earnings before interest, taxes, depreciation and amortisation was up 36.8 per cent to $35.2 million. The net profit after tax of $14.7 million included a one-off gain of $2.1 million from the sale of its roofing, conveyor, containment and Batavian Rubber businesses.
This year's financial statements have been prepared under New Zealand International Financial Reporting Standards for the first time, with prior year comparatives being restated.
Managing director and chief executive Donald Stewart said the company's performance has been boosted by the growing strength of the worldwide dairy industry as well as greater efficiencies in its industrial division.
The good result has seen the restoration of dividend payments, which have been suspended since October.
A fully imputed dividend of 6c per share was declared, payable on October 24.
