Agriculture and industrial equipment maker Skellerup has posted a record profit, with the bottom line boosted by increased revenue from its industrial division and tighter margin controls across the business.
The Christchurch based company today reported a net profit for the 12 months to June 30 of $24.7 million, about 22 per cent higher than a year ago. That beat the firm's own earnings guidance range of $22m to $23m.
Revenue rose 7.1 per cent to $207m, outstripping a 6 per cent increase in cost of sales, which came in at $123.2m for the year. Earnings before interest and tax rose 13.6 per cent to $32.2m.
"What we are seeing with our latest result is the organic growth opportunities that can be generated from this asset base by focusing on customers, our supply chain and our production capability," said chief executive David Mair.
"Our ability to develop new products has won us new customers across all business units and has been a major factor in helping shelter us from the lingering economic downturn."
The firm declared a 5 cents per share fully imputed dividend, up 25 per cent on last year, taking the total payout for the year to 8 cents per share - a new record for the company.
On a divisional basis, the industrial products unit saw revenues increase by 6.9 per cent to $133.1m in the year, driven by high levels of demand for vacuum pumps in the North American natural gas exploration market. Divisional Ebit rose 14.1 per cent to $22.9m.
The agri division, which mainly produces rubber products used in the dairy industry, saw revenues grow 7.4 per cent to $74m, generating an Ebit of $19m, up 11 per cent on last year.
Net debt stood at $4.3m as of the record date, down from $9.1 million a year earlier.
Fees to Skellerup's parent company rose by 75 per cent to $6.5m compared to last year, taking the total payout (including dividends) to $11.8m.
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