Interim Results Provided
12:00AM, 29 Mar 2007 | HALFYR
SCOTT TECHNOLOGY LIMITED
Results for announcement to the market
Reporting Period 6 months to 28 February 2007
Previous Reporting Period 6 months to 28 February 2006
Amount (000s); Percentage Change
Revenue from ordinary activities: 14,484; 18.0%
Profit(loss) from ordinary activities after tax
attributable to security holder: 1,200; (228.6%)
Net profit(loss) attributable to security holders:
Amount per security: 3.0 cents
imputed amount per: 1.478 cents
Record date: Date: 27 April 2007
Dividend payment date: 03/05/07
29 March 2007
Listed Company Relations
New Zealand Exchange Limited
PO Box 2959
RE: SCOTT TECHNOLOGY HALF YEAR PROFIT IMPROVES BY OVER $3M
The Directors of Scott Technology Limited are pleased to advise that the
unaudited result for the six months ended 28 February 2007 was an operating
surplus before tax of $1,872,000, compared to an unaudited loss for the six
months ended 28 February 2006 of $1,407,000, a turnaround of $3,279,000.
Scott Technology Limited group operating revenue for the six months was
$14,484,000, compared to $12,272,000 in the previous half year. The net
profit of $1,200,000 was after providing for taxation of $672,000. With the
return to profitability and a balance sheet that remains very strong, with no
debt, the Directors have declared an interim dividend of 3 cents per share.
The share register will close for the dividend calculation on 27 April 2007.
The dividend will be payable on 3 May 2007 and will be fully imputed with a
supplementary dividend being applied to overseas shareholders.
Sales of appliance systems have been a significant contributor to the
company's profitability improvement and as noted at this time last year, much
of the work undertaken over the last 12 months was on contracts secured when
the New Zealand dollar was at more favourable exchange rates than the current
US 0.71 cents. The current high level of the New Zealand dollar, and in
particular the volatility of the dollar, is providing a challenge to
management who are addressing it through greater manufacturing efficiencies
and the ongoing development of new technology.
To enhance our service we have established a subsidiary company to focus on
providing equipment upgrades to existing customers, and service and support
to both existing and new customers. This company, although based in New
Zealand, will primarily focus on our international customer base. In
addition, and as part of our ongoing focus on improving manufacturing
efficiency and effectiveness, the company is strengthening its global
position by relocating a senior executive of the company to China.
The meat processing work undertaken through our joint venture with PPCS has
continued through this period and has seen the successful trialling of an
automated primal cutting system at a meat processing plant in Australia.
Scott's research and development expenditure continues to be expensed as
incurred and our capabilities and experience in this field continues to
expand. Management expect to have a number of automated systems available
for commercialisation within the next 12 months.
The Directors believe that being at the forefront of technology and a leading
innovator in our chosen fields of appliance manufacturing and meat
automation, will underpin the continued growth and profitability of the
Graeme J Marsh Chris Hopkins
Chairman of Directors Managing Director