Revenue was up 7.1% at $207.3 million, earnings before interest and tax were up 13.6% at $36.6 million, reported profit was up 22.1% at $24.7 million and earnings per share rose nearly 22% to 12.8c per share.
Skellerup had a policy of returning between 40% and 60%.
"The business has performed exceedingly well to the benefit of all shareholders. This has been reflected not only in stronger earnings and a higher dividend payout but also in share price appreciation," Sir Selwyn said.
The share price reached an all time high of $1.62 in one trade immediately after the announcement before dropping to $1.61. The company listed in June 2002 at $1.15, with the price falling to a low of 44c in 2009.
Since then, it has climbed steadily to yesterday's high.
But for Craigs Investment Partners broker Chris Timms, the most impressive part of the result was Skellerup's reduction of debt. With only $4.25 million of debt at balance date, he forecast the company would be debt free by the end of the 2013 financial year, with plenty of options for the future. Debt at the previous corresponding period was more than $9 million; in 2007 it was $120 million.
The further reduction in debt led to an improvement in the percentage of debt to debt-plus-equity from 7.6% in the previous period to 3.4%. Net cash generated from operating activities was $25.3 million.
"The company says it wants its growth to come organically, not through acquisitions. With the dividend payout 60% of reported profit, it has plenty of headroom to grow," Mr Timms said.
Skellerup chief executive David Mair said the company's ability to develop new products had won it new customers across all business units and had been a major factor in helping shelter Skellerup from the "lingering economic downturn".
"We will continue our strategy of investing in developing new sales channels and opportunities, not only in existing markets but also in emerging new markets such as China and South America.".
The dairy manufacturing plan in Woolston was a key part of the agriculture division. Due to earthquake-related damage and liquefaction risk, Skellerup was negotiating to relocate that business to a new site within the Christchurch region.
A new rubber-mixing plant had been bought and capital had been allocated for the manufacture of additional moulding machines to ensure the business operation could relocate without interrupting the supply of finished products to customers, he said.
