Skellerup profit jumps 17.2pc

Skellerup develops gumboots and technical polymar products. Photo / Supplied

Christchurch-based manufacturer Skellerup said its net profit jumped by 17.2 per cent in the six months to December 31 to a record $11.5 million.

The company, which is best known for its gumboots, said its results supported an earnings guidance provided at the annual meeting last October of a net profit in a range of $22 million to $23 million for 2011/12, up from the $20.2 million net profit reported for the June 2010/11 year.

Skellerup declared an interim dividend of 3c a share, up 1c from last year's interim dividend.

Both the agri and industrial divisions performed well, despite some worsening market conditions, particularly in Europe and Australia, the company said.

In the industrial division, revenue was up 5 per cent and earnings before interest and tax (ebit) were up 12.5 per cent. In the agri division, revenue was up 10.7 per cent and ebit up 11.1 per cent.

"This result came from a combination of improved factory efficiencies, growth in the international and local markets for dairy liners and filters, and some improvement in demand for products of a more capital nature," the company said.

Chief executive David Mair said Skellerup had been repositioned so that it could grow earnings, even with relatively flat sales and increasing competition.

Aside from gumboots, Skellerup develops, makes, markets and distributes technical polymer products and vacuum pumps for specialist applications.

Skellerup shares closed down 1c at $1.42 yesterday.