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Rubberware sales in export markets and rubber footwear sales in New Zealand boosted Skellerup’s agri division to a record earnings before interest and tax (Ebit) of $15.3 million in the first half of FY2021.
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The interim result for the division was an increase on the previous corresponding period of 56% as revenue grew 18%.

The agri division result also contained the first full six-month contribution from the Silclear business in the United Kingdom.

The agri division manufactures dairy consumables and rubber footwear, including milking liners, silicone tubing, teat sprayers and hose nozzles.

Chief executive David Mair says further operational improvements in its Wigram plant in Christchurch were significant contributors to earnings growth.

“Improvements in cycle times have enabled better inventory management to smooth out the peaks and troughs of manufacturing and changes in shift patterns has been key and delivers sustainable earnings improvement,” he said.

Skellerup’s industrial division also had a good first half, Ebit up 52% to $15.5m and revenue up 7%.

As a whole, the company declared revenue up 11% to $136.6m, Ebit up 53% to $27.6m, and net profit after tax of $19.5m, up 61%.

Cashflow was up 33% and net debt down $15.5m to $13m compared with the FY20 balance date.

Directors declared an interim dividend of 6.5c, up 1c, and have increased the earnings guidance for the full year from $30-$35m to $33-$37m.

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