Schaffer posts 18% profit slump

Diversified industrial group Schaffer Corporation has posted an 18 per cent full-year profit reduction on the back of a goodwill write-down and proceeds of an insurance claim.

Schaffer reported a net profit of $6.2 million and an 18 per cent increase in revenue to $163.6 million for the financial year.

Chief executive officer John Schaffer said that the company’s Howe operation increased volume by 16 per cent overall.

“With the end of the resources construction boom in Western Australia, Delta and our other building materials businesses have been operating in difficult markets with subdued results,” Mr Schaffer said.

The company said it would pay a final dividend of 13 cents per share, totalling full year dividend payments to 25 cents per share.

“In the near term, we do expect results for the first half to be lower than for last year, with the uncertain conditions for building products and restocking with higher priced hides at Howe,” Mr Schaffer said.

“(But) the value in our business will increase further, particularly with additional volumes in Automotive Leather from 2016, when we commence several new programs, including newly awarded supply to a major European car manufacturer.”

Schaffer’s share price fell by 1.9 per cent to $5.90 per share at 1:50pm.