Strong demand from the rural and industrial sectors has helped the rubber goods manufacturer Skellerup deliver a record profit.
Skellerup make gumboots among other rubber goods. Photo: RNZ / Robin Martin
The company makes hoses, nozzles and gumboots for the rural sector, and parts for boats, cars and kitchen appliances. It is perhaps best known for its red band gumboots.
Key Numbers
(For the year to June 2021 against 2020)
- Net profit after tax $40.2m vs $29.1m
- Revenue $279.5m vs $251m
- Net debt $8.7m vs $28.5m
- Cash flow $58.8m vs $48m
- Final dividend 10.7 cps vs 7.5 cps
Skellerup chief executive David Mair said the overall growth in earnings was the outcome of continuing to work closely with key customer to provide them with specialist products.
He said the past year had shown that its products were critical to a range of daily activities, from the supply of safe drinking water to the integrity of roofs on homes and workplaces.
"Our capability to change our product formulations to meet increasingly demanding standards and combine materials to deliver valuable solutions to our key customers has been - and will remain - key to our ongoing growth," he said.
The company recorded earnings growth of 20 percent in its agree division, on the back of further expansion into the European and Asian markets.
"Footwear sales were also up lead by the Red Band gumboot; the quality and durability of this product is synonymous with NZ farming and sales continue to grow in urban markets," Mair said.
Increased demand for its potable (drinking) and waste water products helped lift earnings in its industrial business by more than half.
"We were able to meet the increased demand by improving our business processes and productivity with limited capital investment," he said.
Skellerup chair Liz Coutts said the company's improved cash position helped it meet requirements, pay down debt and substantially lift its final dividend.
"We have a robust balance sheet with very low debt providing the platform and opportunity for continued investment in growth," she said.
Coutts said the company had a made strong start to the current financial year and would have more details at its annual meeting in October.