Announcement

HALFYR: SKL: Skellerup HY19 Results 08:48a.m. 
SKL  
14/02/2019 08:48  
HALFYR  
PRICE SENSITIVE  
REL: 0848 HRS Skellerup Holdings Limited  
 
HALFYR: SKL: Skellerup HY19 Results  
 
Record First Half Result for Skellerup  
 
Skellerup announced today a record half year unaudited net profit after tax  
of $13.4 million for the six months ending 31 December 2018.  
 
Key points for the six months ending 31 December 2018  
o Revenue of $120.2 million, up 3% on prior comparative period (pcp)  
o Earnings before interest and tax (EBIT) of $19.4 million, up 11% on pcp  
o Industrial Division EBIT of $11.7 million, up 16% on pcp  
o Agri Division EBIT of $9.6 million, up 1% on pcp  
o Corporate Costs of $1.9 million, down 9% on pcp  
o Net profit after tax (NPAT) of $13.4 million, up 15% on pcp  
o Operating cash flow of $13.0 million, down 12% on pcp  
o Interim dividend increased from 4.0cps to 5.5cps  
o FY19 NPAT forecast in the range of $29 million to $31 million  
 
Another strong result from the Industrial Division underpinned the record  
result.  
 
Industrial Division EBIT increased by 16 percent to $11.7 million, continuing  
the trend of strong growth over the past few years. CEO David Mair said this  
result reflected the focus on delivering valued solutions for customers in  
international markets.  
 
"We continue to grow our business with key original equipment manufacturers  
(OEMs) in international markets. Our capability to respond quickly with  
prototypes and to deliver high quality products has increased sales  
particularly into potable water applications. In addition, our customer  
driven product development has delivered earnings growth from products used  
in extractive industries and marine leisure applications."  
 
Mair said operational gains in New Zealand and China delivered an improvement  
in Agri Division EBIT to $9.6 million.  
 
"We have had a key focus on improving productivity and efficiency in our  
operations. At a micro level this includes monitoring key statistics in real  
time that has enabled us to address issues more quickly reducing costly  
rejects. At a broader level, continually reviewing processes to identify  
opportunities to eliminate waste and introduce mechanisation has improved the  
efficiency of our activities. These gains along with increased sales of  
specialist footwear into international markets have offset the impact of  
lower international dairy prices."  
 
Chair Liz Coutts said the Board was pleased to increase the interim dividend  
from 4.0 to 5.5 cents per share. The interim dividend will be imputed 50%. As  
a result, shareholders will receive a net increase of at least 18% over the  
pcp.  
 
"We continue to generate good earnings growth in international markets. This  
demonstrates the durability of our business strategy in an uncertain  
international marketplace. We expect full year NPAT in the range of $29  
million to $31 million, subject to any unexpected changes in our markets. We  
remain focused on leveraging and improving our international platform to  
deliver great solutions for customers and enhanced returns for shareholders."  
 
For further information please contact:  
David Mair  
Chief Executive Officer  
021 708 021  
 
Graham Leaming  
Chief Financial Officer  
021 271 9206  
End CA:00330554 For:SKL Type:HALFYR Time:2019-02-14 08:48:18