Acquisitions boost Scott Technology's sales and profit
Oct. 5 (BusinessDesk) - Scott Technology's annual net profit near doubled as significant acquisitions boosted sales and provided future growth prospects.
Net profit rose to 5.2 million for the year ended August 31 from $2.8 million the previous year, the company said in a statement. The year-earlier result was dragged lower by a $1.1 million non-cash tax adjustment. Sales rose 15% to $53.6 million and pre-tax profit was up 32% at $7.3 million.
“The international, export-oriented nature of the business is highlighted by 89% ($47.5 million) of total revenues being derived outside New Zealand,” Scott said. “This is against the backdrop of an extremely difficult global economic climate.”
The company said its growth is supported by increasing demand for its products around the world. “Our engineered products, knowledge and know-how, used to build automated and robotic production systems, is world class,” it said.
“We lead the world in our chosen markets and we supply technology solutions to many leading international companies spread around the globe.”
Scott said it strengthened its management team during the year with skilled managers joining as a result of both the acquisitions and direct recruitment. It also invested significantly in research and development.
“The directors are confident that the opportunities and initiatives pursued within our strategic framework provides a solid platform for growth.”
Its recent one-for-four rights issue, which raised $9.5 million, combined with its $3.4 million in operating cash flow allowed the company to repay all debt which had been used to fund acquisitions.
Scott will pay a five cents per share final dividend, taking the annual payout to seven cents per share, up from 5.25 cents last year.
Scott shares are unchanged at $1.45, near the middle of the $1.20 to $1.60 trading range over the last 12 months.