I picked on this post from the late Winner69 because it sterotypes where Skellerup sits in the minds of many investors. An old traditional NZ manufacturer plugging away in the industrial Heartland of Christchurch producing dull commodity type products - albeit those with a long standing reputation among our farming community. Yet this view is very far from the reality of Skellerup today.
Around ten years ago (2006) Skellerup did a bit of soul searching. What are our strengths going forwards? They answered their own question in three parts:
a/ A wealth of experience in technical polymer (mostly rubber) development and production.
b/ The ability to make use of low cost manufacturing, both in house and outsourced.
c/ The ability to make best use of global distribution networks.
This re-evaluation meant that parts of the ‘old’ Skellerup were divested as acquisitions that fitted with the three core strengths were made. I think of FY2006 as the start of the ‘new’ Skellerup. FY2006 was perhaps not co-incidentally, the same year the company became Skellerup (from Skellmax), by name once again. So FY2006 is the first year of data that I have considered in my 're-evaluiation' exercise.
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