Dunedin company Scott Technology has posted a $5.14 million
after-tax profit, but despite the 16% decline gave
shareholders a extra special ''centenary'' dividend, in the
face of continuing battles with the high New Zealand dollar.
Revenue for the trading year to August, including 87% derived
from overseas markets, declined from $63.7 million to $60
million, with earnings before interest and tax down from $8.7
million to $7.1 million and after-tax profit down from $6.1
million to $5.14 million.
Scott chairman Stuart McLauchlan said while the result was
down on last year's record profit, it did not diminish what
was an ''excellent result'', given the continued high kiwi
which had ''tightened margins and reduced profits''.
Scott begins its second century of operations with a full
project order book and strong balance sheet, Mr McLauchlan
Scott has in recent years branched out from manufacturing
assembly lines to industrial robotics, specialists motors and
several mining niche market ventures, and most recently
trials in the dairying sector.
Craigs Investment partners broker Chris Timms said Scott had
had to contend with not only the high kiwi but softening
demand in many offshore markets.
''Scott have become far more diversified over the past five
years and shareholders recognise they are not just aligned to
any one market. Its a very satisfactory result, given the
headwinds,'' Mr Timms said.
The special ''centenary divided'' of 2c per share takes the
full-year dividend to 10c.
Scott shares had a year-low last October of $2.05, then a
year-high in February of $2.84. The share price rose 2.2% to
close at $2.30 yesterday.
Mr McLauchlan said despite the margin squeeze and high kiwi,
new technology developments continued. He noted overseas
revenues were almost $52 million, up from 86% last year to
87%, and during a slowing in the mining sector.
Scott chief executive Chris Hopkins said the company's China
factory was running close to capacity and expansion plans
were progressing for several China projects, which were being
designed and built at Scott's Dunedin and Christchurch
''Although our recorded sales to Asia are lower than prior
years, our forward work includes multiple appliance projects
destined for China,'' Mr Hopkins said
Scott's appliance-manufacturing systems markets remained
''challenging'' but four assembly lines were being built for
the US market, with ''high expectations'' of more orders,
plus future China prospects.
Two ''significant'' robotic meat-processing systems were
being commissioned, Mr Hopkins said.
The mining sector equipment market ''performed well'', albeit
to a backdrop of declining exploration and production, while
the electromagnet business was slowing but had been boosted
recently by orders and strong prospects.
Earlier this month Scott bought the leased Auckland
properties where subsidiary RockLabs has been for several
years, for $3.2 million.