Scott Technology ups dividend, signals growth

Friday 25th March 2011

Dunedin-based Scott Technology has increased its dividend and is signalling further growth while reporting an interim profit.

The company posted a net profit before tax of $2.2 million in six months to February 28, up from $1.4 million in the same period last year.

The profit was achieved on revenue of $21.8 million, up from $20.3 million last year.

Directors declared an interim dividend of two cents per share payable on April 8, which is up from 1.25 cents in the same period last year. The increase was possible because of a strong underlying performance and strong balance sheet, the company said.

"The group's diversification across a range of industries has enabled us to deliver a strong result. This strong result has been achieved whilst dealing with variable global economic conditions and a high New Zealand dollar exchange rate," the company said in a statement to NZX.

The maker of automated manufacturing systems, which traces its history back to 1913, said it was actively looking at ways to expand capacity to take full advantage of opportunities being presented to it.

It was seeing demand from customers seeking to reduce costs and increase productivity and quality.

The company said it had experienced strong demand from North America for appliance production lines and from both New Zealand and Australia for meat processing solutions.

The global commodity boom had also produced demand for standard products for mining.

Scott Technology's Christchurch manufacturing facilities sustained only minor damage from the February 22 earthquake and the company was operating near full capacity within several weeks.

"We are aware of friends, colleagues and businesses in and around Christchurch that were not so fortunate and our thoughts are with them," the company said.

NZPA

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