Quake payout doubles Skellerup profits
A Canterbury earthquake insurance settlement has more than doubled Skellerup Holdings' net profit for the year to June 30.
The NZX-listed rubber goods and industrial equipment maker posted an after-tax profit of $41.1 million, up from $19m last year.
The substantial increase was largely due to $20.4m in gains from a Canterbury earthquakes insurance settlement.
Without the earthquake insurance settlement net profit was up $1.7m or 7.4 per cent.
Revenue was up 4 per cent to $196.6m.
Skellerup chief executive David Mair said he was pleased by the performance of the company's agri division, which had benefited from a buoyant New Zealand dairy sector. However, returns from the company's industrial division were slower than what he would have liked.
"We have focused on investing in our team and product range, winning new business in all markets," Mair said.
"In particular, we have continued to invest in the US market with a number of new sales positions being created across our business."
Skellerup's strong position in Europe and opportunities for growth in China would help offset the impact of any drop in farm returns in New Zealand, he said.
Construction of its $30m dairy rubberware development and manufacturing facility in Christchurch was expected to start before Christmas this year and be completed by the end of next year.
Shareholders will be paid a 5-cent half-year dividend, taking the dividends for the year to 8.5c.