Diversified industrial group Schaffer Corporation says it is poised to build on its $7.6 million net profit for the year to June 30, predicting the first half of the 2014 financial year will provide further earnings growth.
Schaffer today announced a 1 per cent increase in net profit on the previous financial year, on the back of a 9 per cent gain in revenue to $138.4 million.
The net profit result included proceeds from an ongoing insurance claim for property damage, Schaffer chairman John Schaffer said.
“The underlying result was lower than the previous year but we are pleased that our businesses continue to operate profitably in very challenging markets.
“We also continue to generate significant excess operating cash flow that we are using to pay down group net debt and strengthen our balance sheet, while also increasing the final dividend for our many long-standing shareholders.”
Schaffer will pay a final dividend of 23 cents per share, up from 21 cents per share in FY2012.
The company’s debt was $35.4 million at June 30, down 56 per cent since Schaffer instituted a debt reduction program in December 2008.
At close of trade today, Schaffer shares were up 2 per cent, at $5.00.