In an investor update released to the market late last Friday, Scott Technology (SCT) fleshed out details of its numerous and diverse income streams, research and development (R&D), and unusually, breaking down contributions of many of its 14 business units, and the waxing and waning of the geographic spread of sales.
The 14 businesses are spread over agritech and food (3), mining (3), appliances (2) and other industrial automation; robotic systems (6).
Craigs Investment Partners broker Peter McIntyre said the presentation was likely to get investors ''either very excited, or concerned''.
''Scott is heading into new technologies, from old-fashioned and people-intensive to a futuristic sector, almost sci-fi,'' he said of the multitude of robotic applications being developed.
The presentation made no mention of a previously announced capital-raising in coming months, which is earmarked to pay off some of the $24million in debt, including the $19.4million total of two recent acquisitions.
SCT undertook a $9.5million capital-raising in 2011, and Mr McIntyre believed a ''ballpark'' figure for its next capital-raising could be $10million to $15million, given its present debt levels.
''Capital-raising will help Scott keep a flexible balance sheet,'' he said.
SCT's mainstay of revenue has reverted to appliances - its Christchurch operation building assembly lines for appliance makers - following a decline in the mining sector, which in 2012 provided more than 50% of revenue.
As mining sales waned to 24% of all sales last financial year, appliances surged from 28% to 48%, which was a timely offset to replace the plunge in mining companies' fortunes.
Full-year 2014 revenue, of $60million, was 75% above the average for the past five years, underpinned by appliances and mining, and is expected to revert to closer to the historical averages this financial year.
While not giving financial guidance, SCT noted sales from appliances would be down this year, but the blow would be softened by revenue from two acquisitions and payments from projects completed in 2014.
Mr McIntyre said Scott could be facing five to seven years of ''lumpy earnings'', given ''threats'' from competitors, to its research or their numerous patents, but after that, earnings ''could be exceptional'', beyond seven years.
He added a caution, that while SCT has had favourable currency hedging in the past, and the weakening New Zealand dollar was a benefit at present, currency fluctuations carried heightened risks in some years.
The presentation looked at the overall robotics sector, with China and automated milking systems looking promising for SCT.
Neither sales in New Zealand nor Asia provide the majority of revenue, and while domestic sales have declined to 9% of total sales in 2014, those in Asia are expanding, from 3% three years ago to 17% in 2014.
The bigger picture is sales in North America, including Mexico, averaging 40% during each of the past three years, but China's potential to go robotic is massive, and streets behind most industrialised countries.
''We have a growing team of ex-pats in Qingdao working with Chinese customers.
''Our advantage is that we bring 'Western' robotics and automation technologies and applications that are not yet strong in China but increasingly sought after,'' SCT said.
SCT's China operations were moving into a ''new strategic phase'', it having purchased an engineering company, for $900,000 in 2011 and after making wood-turning lathes for the seller under agreement, Scott Technology takes 100% ownership this September.
''The new factory is already established and there will be progressive transfer of required people and equipment during 2015,'' SCT's presentation said of the move to Qingdao.
The number of operational industrial robots in 2012 in the combined Asia-Australia region was 629,000 but is expected to rise by more than 75% to 1.1 million by 2017, while Europe rises 25% to 477,000 and the Americas by 50%, to 313,000.
Closer to home, SCT's ongoing development of its robotic Milktech is close to commercialisation, the company setting an initial target of retrofitting an estimated 1800 existing rotary sheds, for herds of more than 500, plus installations during new conversions.
Mr McIntyre said: ''What they're doing is trying to revolutionise the dairy and meat sectors.''
Next year, SCT planned a ''limited roll-out'' and development of an automated milking platform, with commercialisation in 2017, describing Milktech as a ''potential high-growth opportunity'', in the medium term.
Robotics for meat processing remains high on the agenda also, with an R&D allocation over five years of 26% of funds, or more than $7.5million, in applications of handling, grading, scanning, processing and cutting, of lamb, beef, pork and chicken.
