Ann: GENERAL: SKL: Skellerup settles claim

• Release Date: 25/06/14 16:09
• Summary: GENERAL: SKL: Skellerup settles claim
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					SKL
25/06/2014 16:09
GENERAL

REL: 1609 HRS Skellerup Holdings Limited

GENERAL: SKL: Skellerup settles claim

25 June 2014

Skellerup has reached agreement with Marley New Zealand Limited (Marley) to
settle a historical claim for alleged faulty rubber rings which were supplied
to seal underground irrigation systems.

After consulting with its legal advisers and insurers, Skellerup has agreed
to settle the claim without any admission of liability.  In order to
eliminate the extensive costs of a pending High Court trial, Skellerup has
agreed to make a payment in full and final settlement of the claim, with a
net after tax cost to the company of $1.584 million.

Skellerup noted its previous guidance of expected NPAT for the FY14 year of
$22 to $24 million (excluding the impact of insurance proceeds received in
March and costs associated with the Canterbury earthquakes) would be reduced
by the amount of its contribution to the settlement agreed with Marley.

For information 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:00252034 For:SKL    Type:GENERAL    Time:2014-06-25 16:09:10