13 Sep 2013

Skellerup managing director confident of improved growth

7:10 am on 13 September 2013

Skellerup Holdings managing director David Mair says the company should not only produce much more consistent earnings in the future, but it can also grow.

Last month, the rubberware and vacuum pumps manufacturer reported a 23% drop in annual net profit to $19 million from the previous year's record result.

Until Mr Mair took on the job in July 2010, Skellerup had a long history of producing disappointingly flat results, despite constantly buying other businesses - and piling up debt.

Mr Mair said Skellerup is a very different company these days and is now producing consistent results at the cashflow level.

He said it's been a consistent earner and an advantage of having a relatively broad product range is that some things go up, while others come down but overall the balance is strong.

Mr Mair says Skellerup generates around $26 million of cash every year but can see ways of improving that.

He said Skellerup is not relying on a new shale gas boom, but the trends indicate there are opportunities for Skellerup to grow and profit.

On the dairy and food safety side, Mr Mair said Skellerup produces products that better meet the new standards.

He said Skellerup is in a very strong position to grow.