Scott Technology lifts 1H profit 61%, flags expansion

Scott Technology boosts first-half profit 61%, flags expansion

By Paul McBeth

March 25 (BusinessDesk) – Scott Technology Ltd., which secured government funding for meat and food industry process development, lifted first-half profit 61%, while saying it is looking at ways to expand.

The Dunedin-based company made a profit of $1.6 million, or 5 cents a share, in the six months ended Feb. 28, up from $970,000, or 3.4 cents, a year earlier.

Sales rose 7.2% to $21.8 million as the production line manufacturer attracted strong demand in North America and in Australia. It flagged more growth will be likely in the second half of the year, with forward work at record levels.

“The group is actively looking at ways to expand capacity to take full advantage of the many opportunities being presented,” the company said in a statement. “The company continues to see growth opportunities across a range of activities and will progress there they add value to the business.”

The shares were unchanged at $1.42 in trading, and have gained 1.4% this year. The board declared a first-half dividend of 2 cents a share, up 0.75 cents from a year earlier.

Last year, Scott Technology unveiled its best earnings performance in seven years, though the bottom line was hit by the non-cash adjustment for tax rule changes on claiming depreciation.

In December, Scott Technology was one of 26 fast-growing, high-tech companies to win a share of some $234 million of government funding over the next four years, securing $3.8 million in this financial year.

(BusinessDesk)

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