Page 1

SKELLERUP SKELLERUP HOLDINGS LIMITED L3 205 Great South Road , Auckland 1051 PO Box 74526 , Greenlane , Auckland 1546 Telephone +64 9 523 8240 Email ea@skellerupgroup.com 18 February 2021 Skellerup reports outstanding earnings growth for first half and increases full year FY21 earnings guidance Skellerup announced today a record unaudited net profit after tax ( NPAT ) of $ 19.5 million for the six months ending 31 December 2020 and increased its full year FY21 NPAT guidance to $ 33 to $ 37 million . Key points for the six months ending 31 December 2020 • Revenue of $ 136.6 million , up 11 % on prior comparative period ( pcp ) • Earnings before interest and tax ( EBIT ) of $ 27.6 million , up 53 % on pcp о Agri Division EBIT of $ 15.3 million , up 56 % on pcp Industrial Division EBIT of $ 15.5 million , up 52 % on pcp Corporate Costs of $ 3.3 million , up 64 % on pcp о Net profit after tax ( NPAT ) of $ 19.5 million , up 61 % on pcp • • Operating cash flow of $ 35.1 million , up 33 % on pcp • Net debt of $ 13 million down $ 15.5 million on FY20 year - end • Interim dividend of 6.5cps ( an increase of 1.0c per share ) , up 18 % on pcp • FY21 NPAT forecast in the range of $ 33 million to $ 37 million . CEO David Mair said he was very pleased with the earnings growth achieved across all businesses . " We are focused on our core strategy to deploy our expertise to design and develop innovative engineered products that deliver real solutions to OEM customers . We continue to work closely with customers to clearly understand their requirements and challenges to rapidly develop and deliver prototypes followed by standards - compliant product . " Mair noted that the first half NPAT was boosted by approximately $ 0.5 million due to the impact of Covid - 19 and Brexit . " Production constraints caused by Covid - 19 caused some deferral of sales from the prior year into the first half of the current year . In addition , uncertainty over Brexit related disruption saw some customers increasing purchases in December 2020 providing an additional earnings boost for the first half of FY21 . Our leaders continue to lead and manage around the impacts of Covid - 19 very well . We have seen some project timelines for new products extend but despite this , we have successfully moved into production with new products and customers in Australia , the USA and Europe . " Skellerup's Agri Division achieved a record EBIT of $ 15.3 million , up 56 % on the pcp . Revenue grew 18 % with increased dairy rubberware sales in international markets ( particularly into Europe ) , increased rubber footwear sales in NZ and a full 6 - month contribution from Silclear ( acquired in November 2019 ) . Mair said operational improvements were also a significant contributor to earnings growth . " We have made further improvements in the efficiency of our operations at