SKL Skellerup Holdings

[Left Field]

SKL feeling the love at the moment.....

[Left Field]

Robust result they say..... clearly effected by rural downturn but industrial division performing v well.... nice divvie..
Holders will be happy.

https://www.nzx.com/announcements/436168

Highlights for the year ending 30 June 2024
 - Revenue of $330.6 million, down 1% on the prior comparative period (pcp)
 - EBIT of $72.7 million, a record result, up 1% on the pcp
 o Industrial Division's EBIT of $46.9 million, a record result, up 9% on the pcp
 o Agri Division's EBIT of $30.7 million, down 10% on the pcp
 - Underlying net profit after tax (NPAT) of $50.0 million, down 2% on the pcp
 - NPAT of $46.9 million, after deducting a non-recurring, non-cash tax charge required for the change in legislation in New Zealand to remove tax depreciation deductions on buildings
 - Operating cash flow of $70.8 million, a record result, up 31% on the pcp
 - Net debt of $15.4 million, down 43% on the pcp
 - Final dividend of 15.5 cents per share (cps) (50% imputed), bringing the total FY24 dividend to 24.0 cps (50% imputed) for the full year, up 9% on the pcp
 

[Ferg]

Given the downturn in rural spend, that is pretty impressive when compared to PGW's announcement.

[winner (n)]

Given the downturn in rural spend, that is pretty impressive when compared to PGW's announcement.

Even higher than FPH

One NZ company that consistently  achieves great returns on invested capital .....about 18%

Even higher than FPH

[Bev]

Have a look at their presentation.  Well set out and very informative graphs.

I am pleased at the way gross profit margins have been steadily increasing.

[Left Field]

Record result (up 11% on pcp).... in tough times.... good for holders....increased divvy.

https://www.nzx.com/announcements/446611

Key points for the six months ending 31 December 2024
 • Revenue of $165.3 million, up 5% on the pcp
 • Earnings before interest and tax (EBIT) of $35.0 million, a record result and up 11% on the pcp
 o Industrial Division EBIT of $22.4 million, down 2% on the pcp
 o Agri Division EBIT of $15.5 million, up 31% on the pcp
 o Corporate costs of $2.9 million, down 7% on the pcp
 • Net profit after tax (NPAT) of $24.2 million, a record result and up 12% on the pcp
 • Operating cash flow of $32.2 million, down $4.3 million on the pcp
 • Net debt of $20.4 million, a $6.0 million reduction on the prior half year
 • Interim dividend of 9.0 cents per share (an increase of 0.5 cps), up 6% on the pcp
 

[winner (n)]

Great half year result and more to come I reckon

BusinessDesk had a article with a great headline

'It's not a pipe dream': Skellerup CEO Graham Leaming reveals his big goal
Extract -- Leaming, who stepped into the chief executive position in March from leading the company's financial operations, said it was not a pipe dream for Skellerup to double the size of its business. The goal could be achieved through organic growth, he said.

Skellerup have achieved stellar returns over a long period and currently its ROIC is over 20% -- that's way above its cost of capital. The excessive returns commonly called Economic Value Added (EVA) and a real measure of wealth creation.

Equity is $1.16 per share so with a share price of $5.25 the market has ascribed $4.09 per share to these excessive profits. The $4.09 is essentially the present value of future excessive profits.

The value of future excessive returns depends on what cost of capital and expected growth rates but I reckon that $4.09 should be over $5,00 -- a share price well over $6.00 in other words

Plenty more upside here

PS - Learner said acquisitions weren't off the agenda either, balance sheet to do one

[BlackPeter]

Great half year result and more to come I reckon

BusinessDesk had a article with a great headline

'It's not a pipe dream': Skellerup CEO Graham Leaming reveals his big goal
Extract -- Leaming, who stepped into the chief executive position in March from leading the company's financial operations, said it was not a pipe dream for Skellerup to double the size of its business. The goal could be achieved through organic growth, he said.

Skellerup have achieved stellar returns over a long period and currently its ROIC is over 20% -- that's way above its cost of capital. The excessive returns commonly called Economic Value Added (EVA) and a real measure of wealth creation.

Equity is $1.16 per share so with a share price of $5.25 the market has ascribed $4.09 per share to these excessive profits. The $4.09 is essentially the present value of future excessive profits.

The value of future excessive returns depends on what cost of capital and expected growth rates but I reckon that $4.09 should be over $5,00 -- a share price well over $6.00 in other words

Plenty more upside here

PS - Learner said acquisitions weren't off the agenda either, balance sheet to do one

Agree - doubling the size by organic growth is not a pipedream (hey, they did that several times before, didn't they?) - and they have a prominent place in my "essential business" portfolio. Gives me exposure to agriculture, industrial consumables as well as to the building industry. In my view in all divisions still plenty of runway.

Obviously - will need to see, whether the success streak continues with David Mair now fishing in a different pond, but so far it looks promising.

[Mos]

Another strong result from this high ROE growth company. Navigating their way through the challenges well and consistently building a high margin global business with minimal debt.

Skellerup achieves another record result
21/08/2025, 08:30 NZST, FLLYR
Broad-based revenue growth underpinned a record year for Skellerup, generating earnings before interest and tax (EBIT) of $78.0 million, a seven per cent increase over the prior year.
 
 Highlights for the year ending 30 June 2025
 · Revenue of $353.5 million, up 7% on the prior comparative period (pcp)
 · EBIT of $78.0 million – a record result, up 7% on the pcp
 o Industrial Division's EBIT of $48.4 million – a record result, up 3% on the pcp
 o Agri Division's EBIT of $35.3 million – a record result, up 15% on the pcp
 · Net profit after tax (NPAT) of $54.5 million – a record result, up 9% on the pcp
 · Operating cash flow of $66.5 million, down 6% on the pcp due to working capital investment
 · Net debt of $12.4 million, down 19% on the pcp
 · Final dividend of 16.5 cents per share (cps) (50% imputed), bringing the total FY25 dividend to 25.5 cps (50% imputed) for the full year, up 6% on the pcp
 
https://www.nzx.com/announcements/457154

[HAWKDOG]

Nice to SKL up 6% today!  Have this one in my Sharesies kiwisaver. 

[winner (n)]

Quality company, quality management, quality products.

Consistent sales and profit growth / ROE and ROIC over 20% / low debt etc etc

No reason why it shouldn't be trading over $6.00

At $6.00;would only on a trailing PE of 20 .....deserves more.

[winner (n)]

Love ambitious leaders " 'It's not a pipe dream': Skellerup CEO Graham Leaming reveals his big goal"

I reckon they can do it .....on organic growth alone

If at right price acquistions on the agenda as well

[Mos]

Quality company, quality management, quality products.

Consistent sales and profit growth / ROE and ROIC over 20% / low debt etc etc

No reason why it shouldn't be trading over $7.00

At $7.00 would only on a trailing PE of 18 ...deserves more.

Like the positivity Winner but am struggling to follow the maths. At $5.01 x 196.07 m shares market cap of $982.3 m equates to trailing PE of 18 based on NPAT of $54.5 m. Are you advocating for a trailing PE of 25 in your $7.00 handle comment?

[winner (n)]

Like the positivity Winner but am struggling to follow the maths. At $5.01 x 196.07 m shares market cap of $982.3 m equates to trailing PE of 18 based on NPAT of $54.5 m. Are you advocating for a trailing PE of 25 in your $7.00 handle comment?

My bad ...used EBIT

How about $6 plus medium term ....PE about 20

[Mos]

My bad ...used EBIT

How about $6 plus medium term ....PE about 20

I am with you.