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The Schaffer (ASX:SFC) share price has surged 5% higher today. Here’s why.

The Schaffer share price has surged 5% this morning after the industrial company announced strong results for the first half of FY21.
The post The Schaffer (ASX:SFC) share price has surged 5% higher today. Here’s why. appeared first on The Motley Fool Australia. –

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The Schaffer Corporation Limited (ASX: SFC) is climbing today, after the diversified industrial company reported upbeat results for its first-half FY21 trading period.

At the time of writing, the Schaffer share price is trading up 5.6% at $18.49.

What’s moving the Schaffer share price today?

In today’s release, Schaffer announced a statutory net profit after tax (NPAT) for the first-half FY21 of $22 million. This is an increase from the $13.9 million reported for the same period in FY20.

The $22 million includes a $10 million non-cash and unrealised gains on equity investments, primarily its investment in the ASX-listed Harvest Technology Group Ltd (ASX:HTG).

On the operational side, Schaffer says its automotive leather division experienced strong sales volumes in the half. This was driven by the launch of new vehicle programs in Europe and China. The company did not provide figures on the sales.

Schaffer expects to pay an interim fully franked dividend of 45 cents per share for the half, to be confirmed and formally announced on 17 February after the results have been audited.

About the Schaffer Corporation

Schaffer is a diversified industrial company with core operations in building materials, automotive leather and property.

The automotive leather division is the largest and generates around two-thirds of revenues, with the other third split between its building materials business and investments.

In its full years results for FY20 announced in August, the company reported an NPAT of $23.6 million, up from $22.9 million in FY19.

About the Schaffer share price

Including today’s gains, the Schaffer share price has risen by 22% over the last 12 months.

The company paid a fully franked dividend of 80 cents per share for the full FY20.

Schaffer commands a market valuation of $238 million.

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Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post The Schaffer (ASX:SFC) share price has surged 5% higher today. Here’s why. appeared first on The Motley Fool Australia.

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