Sharechat Logo

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

Thursday 18th February 2021

Text too small?

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

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Restaurant Brands New Zealand Limited (NZX: RBD) Q4 Sales Announcement
NZ Automotive Investments Limited (NZX: NZA) trading update
Livestock Improvement Corporation Limited (NZX: LIC) Half-Year Result 2021-22
NZ Compare announces the acquisition of PriceMe
Tourism Holdings Limited (NZX: THL) thl to acquire MaxiTRANS NZ
NZ Compare announces the acquisition of PriceMe
25th January 2022 Morning Report
Fonterra Shareholders Fund (NZX: FSF) Fonterra lifts forecast Farmgate Milk Price range
Green Cross Health Limited (NZX: GXH) Trading update
Ebos Group Limited (NZX: EBO) Retail Offer Oversubscribed