Scott Technology offers staff a share purchase scheme

Dunedin-based Scott Technology is offering its employees a share purchase scheme which could raise more than $670,000 for the manufacturer of automated systems.

In a prospectus released to the NZX yesterday, Scott said it would offer interest-free loans from a minimum $600 up to a maximum $2340 per employee, repayable monthly over a period up to three years.

Companies which offer share schemes to staff do so either as a reward or an incentive.

The total number of shares being offered is not expected to be more than 400,000.

At yesterday's price of $1.69c they would be valued at $676,000.

The offer is open from May 22 until June 12.

For Scott's six months trading to February, sales rose 35% to $29.4 million and it posted a rise in after-tax profit from $1.6 million a year ago to $2.1 million for the period.

Under a previous employee share scheme offer in 2009, 197,098 shares were issued and held on trust while employees made loan repayments.

In 2010, $95,000 was owed and by August last year that was down to $28,000.



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