21 Feb 2014

Skellerup says it's positioned for growth

10:02 am on 21 February 2014

Skellerup Holdings says it's positioned its businesses for growth, even if the signs of strength in the economies it operates in don't eventuate.

The company reported a 14 percent increase in net profit to $10.8 million for the six months to December, compared with $9.5 million in the same period last year.

Group sales rose 2 percent to $97.3 million.

Skellerup says it spent a lot of time refocussing its businesses in the United States and its Agri Division has reaped the rewards of higher commodity prices in New Zealand, while the Australian market is beginning to show signs of improvement.

Its chief executive David Mair says the company is well positioned in the markets it operates in and the firm's focus is to do well whether the markets grow or not, although it certainly helps if the markets are growing.

He says Skellerup's Australian businesses have done very well despite the currency change.

Mr Mair says the company has made a number of changes in the US market anticipating that it would grow and those changes mean that if the market continues to grow Skellerup will do much better than it would have otherwise.

He says if the market does not grow Skellerup Holdings will still be in a better place to satisfy its customers.

Skellerup will pay a first-half dividend of 3.5 cents per share, up half a cent on last year.