Skellerup shares hit three-year high on new profit guidance

Skellerup shares hit three-year high on higher profit guidance

by Paul McBeth

Dec. 15 (BusinessDesk) – Skellerup Holdings, the rubber goods and milking equipment manufacturer, is tipping its 2011 profit will be $2.5 million more than previous expectations, pushing its shares to the highest level since June 2007.

The company, which will join the NZX 50 index next week, lifted forecast net profit to a range of between $18.5 million and $19.5 million for the year ended June 30, up from a previous expectation of between $16 million and $17 million.

The company said the upgrade came from increased revenue from its agri and industrial divisions in the first five months of trading.

“The trading outlook has continued to improve over both divisions to the extent that a revision of the full year forecast is now appropriate,” the company said in a statement.

“While the board continues to be conscious of the fact that global economic conditions continue to be somewhat uncertain, directors are of the opinion that it is appropriate to make this announcement.”

The shares climbed 3.9% to $1.07 in trading today, and have almost doubled this year after recovering from record low prices last year.

Skellerup beat expectations this year when it reported a profit of $12 million for the year ended June 30. The manufacturer slashed debt by about a third in 2010 after raising $20 million in a 2-for-5 rights issue, improved earnings and better use of working capital.

(BusinessDesk) 16:58:44

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