2009 Full Year Announcement
12:00AM, 9 Oct 2009 | FLLYR
SCOTT TECHNOLOGY - PROFITS & DIVIDENDS RETURN
FINANCIAL RESULT FOR THE YEAR ENDED 31 AUGUST 2009
The Directors of Scott Technology Ltd are pleased to report that the company
produced a profit before tax of $390,000 on operating revenues of $31.3
million for the year ended 31 August 2009. This result was achieved through
one of the most turbulent economic downturns of our time causing many
companies to cease or defer investment in capital equipment, such as Scott
produces. This year's profit compares to the previous year's loss of $1.2
million and operating revenues of $25 million.
Total shareholders equity at 31 August 2009 was $19.2 million, compared to
$18.8 million at 31 August 2008. Included in shareholders equity is an issue
of shares to employees in accordance with approved Stock Exchange and
taxation criteria. The issue was at modest levels to a large number of
employees. This was funded by a loan repayable by employees over three years
and encourages a sense of ownership by employees. The company is supported
by a strong balance sheet with total assets of $35.4 million, cash on hand at
balance date of $1.5 million and total bank loans of a modest $4.5 million.
A nominal dividend of 1.0 cent per share has been declared by the Directors
in respect of the year ended 31 August 2009. This reflects the Directors'
confidence in the growth and trading ability of the company, supported by the
underlying strength of the company's balance sheet.
New Zealand's productivity is low by any standard measure. New Zealand's
productivity would be improved by investment in technology such as our
innovative automation and production systems. Scott Technology is a leading
global provider of systems and solutions that enhance our customers'
productivity worldwide. Recently the Australian Government has introduced
fiscal incentives for Australian companies to invest in capital equipment.
New Zealand is in need of such inducements that aid productivity increases.
No commentary would be complete without mentioning the currency. As a
manufacturing exporter the company is finding it increasingly difficult to
contend with the volatility of the New Zealand dollar. Swings in the value
of the New Zealand dollar relative to the US dollar have approached 45% in
the last 12 months.
Despite volatile trading conditions and uncertain economic times, management
and staff continue to be successful in developing strategic relationships
with customers in our niche markets. The company's skills, experience and
technical know-how will continue to ensure the company's innovative products
and services remain in demand driving the growth and profitability of the
Stuart J McLauchlan
Chris C Hopkins
Nature of event: Full Year Dividend
EXISTING Securities affected by this
Description of the class of securities: Ordinary Shares
Monies associated with event
Amount per security: $0.01 (one cent)
Currency: New Zealand Dollars
Total Monies: $284,747
Resident Withholding Tax: $0.000000
Record Date: Oct 30, 2009
Payment Date: Nov 6, 2009