Skellmax posts $6.3 million first half profit

The result is 15 percent ahead of pro forma figures for the same period last year, and shows the newly-listed company is on track to meet full year prospectus forecasts of a $12.44 million profit.

Skellmax -- an amalgamation of rubber icon Skellerup and pump maker Flomax -- listed in June last year at $1.15.

Despite consistently bettering all key prospectus projections the shares have traded below that level since. The shares last traded down a cent at $1.08.

Today's result was achieved on total operating revenues of $50 million, down 3 percent -- due largely to the effects of a rising New Zealand dollar.

The company will pay a fully imputed dividend of 3 cents per share on April 11.

Skellmax said it was on track to achieve its full year 2003 earnings before interest and tax (EBIT) forecast of $20.77 million.

"At this stage we are pleased with our position relative to our full year forecasts at both the EBIT and net profit after tax levels," chairman Keith Smith said.

"Seven months into the current financial year, barring unforeseen events and a worsening of the current global situation, Skellmax Industries is on course to achieve the EBIT forecast of $20.77 million.

"Our core business streams -- Agri and Industrial -- have performed to expectations in our first full half-year as a publicly listed company."

Managing director Donald Stewart said regional trading conditions were generally sound and the company's products were in demand.

"The second half of the year has started positively with a sound level of forward orders. "

The company's international operations also performed well during the first half, despite the background of drought conditions in Australia and flat American and European economies.

Revenues in Skellmax's Agri business division were $26.44 milllion and EBIT was up 9 percent at $7 million. The division accounted for 53 percent of group revenue in the period and 65 percent of EBIT.

The industrial business recorded total revenue of $23.32 million and EBIT rose by 19 percent to $3.78 million.

Looking ahead, Mr Smith said the delayed economic turnaround in the Northern Hemisphere and the effects on farm incomes of weather conditions were of concern, but the group's businesses continue to show sustained domestic and international demand.

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