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Skellerup Holdings Limited (NZX: SKL) Reports Record First Half and Increases Guidance

Thursday 18th February 2021

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Skellerup announced today a record unaudited net profit after tax (NPAT) of $19.5 million for the six months ending 31 December 2020 and increased its full year FY21 NPAT guidance to $33 to $37 million.

Key points for the six months ending 31 December 2020

• Revenue of $136.6 million, up 11% on prior comparative period (pcp)

• Earnings before interest and tax (EBIT) of $27.6 million, up 53% on pcp

• Net profit after tax (NPAT) of $19.5 million, up 61% on pcp

• Operating cash flow of $35.1 million, up 33% on pcp

• Net debt of $13 million down $15.5 million on FY20 year-end

• Interim dividend of 6.5cps (an increase of 1.0c per share), up 18% on pcp

• FY21 NPAT forecast in the range of $33 million to $37 million.

The excellent first half result meant that expectations for the FY result had increased. Skellerup now expects to deliver FY21 NPAT in the range of $33 million to $37 million. This is an increase on the range of $30 million to $35 million advised in October last year. “We are experiencing extended shipping times and increased freight costs due to congestion and availability. We have also seen some increases in raw materials and will be impacted by the stronger NZ dollar. All of these factors will have some impact in the second half of the year. However, we have taken early steps to manage these risks and will continue to ensure we are able to meet our customers’ needs.”

Chair Liz Coutts said the outstanding first half earnings, record operating cash flow of $35.1 million and increased expectations for the full year, allowed the Board to declare an 18% increase in the interim dividend to 6.5 cents per share, imputed 50% (the same as in the pcp).

“During the first half of the year, Skellerup has again demonstrated we have a robust business that is generating earnings and cash flow growth from delivering critical products to our customers around the world. The Board is proud of the contribution from our global team, particularly considering the significant challenges many face across the world. We remain focused on ensuring Skellerup’s team remain well supported as we target continued investment to grow sustainable earnings and shareholder returns.”

Please see the links below for details:

HY21 Results Announcement

HY21 Interim Report

HY21 Distribution Notice

HY21 Results Presentation

HY21 Media Release

Source: Skellerup Holdings Limited

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