Ann: FLLYR: SKL: Skellerup FY15 Result

• Release Date: 20/08/15 08:53
• Summary: FLLYR: SKL: Skellerup FY15 Result
• Price Sensitive: No
• Download Document  6.25KB

					SKL
20/08/2015 08:53
FLLYR
PRICE SENSITIVE
REL: 0853 HRS Skellerup Holdings Limited

FLLYR: SKL: Skellerup FY15 Result

20 August 2015

Strong finish drives improved performance

Highlights for the year ending 30 June 2015
o Strategies to boost presence in and develop products for international
markets, particularly in the United States, have delivered increased sales
and earnings.
o NPAT of $21.9 million is up six percent on guidance and the previous year
excluding the $20.4 million gain realised on settlement of the Canterbury
earthquakes insurance claim in FY14.
o Increased final dividend of 5.5 cents per share (cps) giving a full year
dividend of 9.0 cps (up 6% on pcp).
o Construction of our new Dairy Rubberware Development and Manufacturing
facility (Project Viking) has progressed significantly.

A strong finish to the year has allowed Skellerup Group to post improved
earnings for FY15, the Company announced today.
Chief Executive Officer David Mair said the results demonstrated the value of
Skellerup's focus on allocating capital and resources to those markets with
the greatest potential for sustainable long-term growth in revenue and
profit.

"The progress we have made in targeting growth for our industrial businesses
into specific markets and applications has delivered benefits to the bottom
line; we believe this trend will continue in the coming year," said Mr Mair.

Mr Mair cited the US as an excellent example of the Company's growth strategy
at work; sales revenue there increased by 20 per cent over the prior year.

"While the headlines in the US continue to concentrate on the financial
sector's performance, other sectors in the real economy are performing
strongly," he said.

"To take one example, the need for cities across the US to invest in the
renewal of water and waste water infrastructure throughout the US is well
known. Working with key partners has led to innovative product solutions and
significant business opportunity for us in a sector in which we are achieving
success already."

Mr Mair said increasing the number of in-market staff had driven increased US
sales for its Gulf Rubber products used in infrastructure and potable
(drinking) water applications and he expected similar results in the next
year for Deks plumbing and fastener products and Ultralon foam products used
in the marine and construction industries.

Gulf Rubber was named Partner of the Year recently by top North American
tapware manufacturer Moen and Deks and Ultralon have concluded distribution
agreements successfully with major supply groups, including Composites One.

Mr Mair said a focus on international markets had enabled Skellerup's Agri
Division to achieve an increase in earnings and overcome the impact of a
reduced contribution from the New Zealand market. He added that the increase
in sales was broad and included growth in the US, China and South America. Mr
Mair also noted that, whilst the New Zealand market was slightly softer than
it was in the prior year, sales of dairy rubber during the winter peak, when
much of the on-farm and shed maintenance work is done, were relatively solid.

"We believe this demonstrates the value New Zealand dairy farmers place on
maintaining high levels of animal health and milk quality," said Mr Mair.

"We remain strongly committed to encouraging best practice in the dairy
industry, and to repaying the support given to us by farmers around the
country by providing them with innovative, reliable and cost-effective
solutions."

Mr Mair said increasing global milk production and continuing strong demand
for dairy products, particularly in developing countries, provided excellent
growth opportunities for the Agri Division.

The introduction of new footwear products, including boots designed
specifically for the electricity, food-processing and forestry industries,
also helped boost sales and earnings in New Zealand, South America and the
US. Also, Skellerup's Fire Fighter Extreme high-performance boot is being
used now in Australia and Britain.

Mr Mair said the growth generated from new business, plus improvements in
operations across its manufacturing sites enabled Skellerup to offset the
softer demand for hard and soft commodities and the impact on Skellerup's
business of lower prices for iron ore, oil and gas, and dairy products.

Overall, improved earnings from both the Industrial and the Agri Divisions
translated into a six percent increase in net profit after tax to $21.9
million for the year ended 30 June 2015. This was achieved on revenue of
$203.0 million, up by three percent on the previous year. Skellerup's balance
sheet continues to remain in good health, closing the year with net cash held
of NZ$0.8 million.

Dividend
In light of the 2015 result and their confidence in the business' underlying
strength and prospects, the Directors have increased the final dividend
payment to 5.5 cents per share, fully imputed. This brings the total dividend
pay-out for the financial year ending 30 June 2015 to 9.0 cps, an increase of
6 percent over the prior year.

Concluding comments
Chairman Sir Selwyn Cushing said: "We are committed to profitable sales
growth with a particular focus on the US. The investment we have made there
in developing and establishing relationships with leading manufacturers and
distributors has begun to deliver results already and the Board expects this
growth to continue.

"In New Zealand, we continue to make excellent progress on the construction
of our new Wigram facility and are on track to move in early next year. We
spent over $15 million on the facility in the year under review and have an
additional $25 million earmarked to complete the construction and fit-out.
The facility will enable Skellerup to remain the world leading supplier of
food grade rubberware. Consumer demand for safe food will continue and we are
enhancing our capability for ongoing success and growth.

"The economic environment is uncertain, however I am confident that our
progress and plans mean we are well placed to deliver a further improvement
in earnings in FY16."

For further information please contact:
David Mair
Chief Executive Officer
021 708 021

Graham Leaming
Chief Financial Officer
021 271 9206

For media queries please contact:
Geoff Senescall
Senescall Akers Limited
021 481 234
End CA:00268732 For:SKL    Type:FLLYR      Time:2015-08-20 08:53:40