Skellerup FY20 NPAT equals prior year record result

Skellerup today announced audited net profit after tax of $29.1 million for the year ended 30 June 2020. Highlights for the year ending 30 June 2020 ? Resilience and skill of our people to sustain business operations in a challenging environment. ? Revenue of $251.4 million, up 2% on pcp. ? Earnings before interest and tax (EBIT) of $42.5 million, up 2% on pcp. o Agri Division EBIT of $25.4 million, up 11% on pcp. o Industrial Division EBIT of $20.9 million, down 9% on pcp. ? Net profit after tax (NPAT) of $29.1 million, in line with pcp. ? Operating cash flow of $48.0 million up 66% on pcp. ? Final dividend of 7.5 cps (50% imputed) bringing the total dividend to 13.0 cps (50% imputed) for the full year, in line with pcp. Skellerup financial results overall are in line with the prior corresponding period (pcp) record result despite the impact of Covid-19 restrictions on both the supply chain and markets globally. The performance reflects the resilience and robustness of the business and highlights the benefit of providing essential products, particularly in the Agri Division, to international markets. Agri Division EBIT was a record $25.4 million. CEO David Mair said the result underscored the importance of the essential dairy consumables products that Skellerup design, manufacture and sell globally. "The strength and resilience of our Agri business is seen in the record result. We increased sales of essential rubberware products into the USA, achieved operational gains despite the impact of COVID-19 restrictions at our key Wigram facility and had a strong contribution from Silclear, our silicone rubber products business acquired on 01 November 2020." Industrial Division EBIT was $20.9 million, down 10% on the record result achieved in the pcp. Mair said results varied across the Division reflecting the diversity of customers and applications served. "With minor exceptions, our businesses have continued to operate throughout the varying COVID-19 lockdowns across the world, reflecting the critical nature of many of our products. However, demand was adversely affected for some of our products used in infrastructure and oil and gas applications. Despite this, we are in a secure position for continued growth, with a strategy focused on specialist products across infrastructure, roofing, flow control, healthcare, medical and marine applications." Chair Liz Coutts noted that FY20 had seen the resilience of Skellerup's business model and strategy well and truly tested. "Reflecting on the recent disruption we have all faced and the impact this may continue to have, it is the strength of our business, and the adaptability and commitment of our leaders and our teams, that has allowed us to continue to meet the needs of customers and deliver a very good result for our shareholders" Coutts advised that a final dividend of 7.5 cents per share (imputed 50%) would be paid to shareholders on 16 October 2020 with record date of 02 October 2020. This payment will bring the total dividend pay-out for the financial year ended 30 June 2020 to 13.0 cents per share (also imputed 50%), in line with pcp. "We are pleased to maintain our dividend and reward shareholders in Skellerup. Over the past 9 years the pay-out has more than doubled. This demonstrates Skellerup's strong earnings and cash flow and the Board's practice of paying out a consistently high proportion of earnings," Coutts said. Coutts said trading had started solidly in FY21 and she looked forward to updating shareholders further at the Annual Meeting on 29 October 2020. For further information please contact: David Mair Chief Executive Officer 021 708 021 Graham Leaming Chief Financial Officer 021 271 9206 End CA:00358410 For:SKL Type:FLLYR Time:2020-08-21 08:32:56