Schaffer's UrbanStone's pavers.
Schaffer's UrbanStone's pavers.

Schaffer Corporation has lifted its first-half profit by 19 per cent to $5.3 million.

However underlying profit was down 21 per cent to $3.3 million on lower volumes in the company's automotive leather division.

The result was achieved on revenue of $72.3 million, down 11 per cent on the previous corresponding period.

The company will issue a fully-franked interim dividend of 11 cents, up one cent from previously.

Schaffer chairman John Schaffer said the company's first-half performance was characterised by the mixed fortunes of its underperforming automotive leather business and its strong building materials division.

"While we face challenges as always, it is pleasing that the group's strong cash flow has allowed us to continue our debt reduction program (down 26 per cent to $33.6 million over the period)," he said.

He said the company had also grown its net tangible assets which, including $47 million in unrealised pre-tax property gains, had grown to $6.46 a share, well above the company's existing share price of $4.32.

Mr Schaffer said the company's statutory full-year result would receive a boost from the ongoing proceeds of a fire damage insurance claim but underlying profit would likely be similar to 2012.

Schaffer shares up four cents to $4.32 at 10.35am.

The West Australian

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