FINANCIAL RESULT FOR THE FULL YEAR ENDED 31 AUGUST 2004
12:00AM, 13 Oct 2004 | FLLYR
CONSOLIDATED OPERATING STATEMENT FOR THE FULL YEAR ENDED 31 AUGUST 2004
Current Period (Previous Corresponding Period)
Trading revenue 35,789 47,490
Other revenue 104 261
Total Operating Revenue 35,893 47,751
OPERATING SURPLUS (DEFICIT) BEFORE TAXATION
Less taxation on operating profit 1,810 2,809
OPERATING SURPLUS (DEFICIT) AFTER TAX 3,716 5,634
Extraordinary items after tax - -
Unrealised net change in value of investment properties
NET SURPLUS (DEFICIT) FOR THE PERIOD 3,716 5,634
Net Surplus (Deficit) attributable to minority interests
NET SURPLUS (DEFICIT) ATTRIBUTABLE TO MEMBERS OF THE LISTED ISSUER 3,716
EPS 14.9cps 25.4cps
Final Dividend: 7cps
Record Date: 19/11/2004
Payment Date: 25/11/2004
Imputation tax credit:3.447761 cents (Fully Imputed)
PRELIMINARY ANNOUNCEMENT TO THE STOCK EXCHANGE - FINANCIAL RESULT FOR THE
FULL YEAR ENDED 31 AUGUST 2004
The Directors of Scott Technology Ltd are pleased to advise that the company
earned an audited operating surplus before tax of $5,526,000 on sales of
$35.8 million for the year ended 31 August 2004. This is the second highest
annual result for the company and reflects the growing diversification of
Scotts global markets. This operating surplus before tax compares to the
exceptional result for the year ended 31 August 2003 of $8,443,000 achieved
on total sales of $47.5 million.
Scott Technology's core business is the design, manufacture and installation
of high technology production lines for the global appliance industry.
However, the company's more recent development of robotics for the meat
industry at its Dunedin Technology Centre and the development of the food and
beverage handling robotics at its Auckland Technology Centre, has greatly
widened the scope of Scotts global marketing opportunities.
Total shareholders equity further increased to $17.2 million at 31 August
2004, compared to $16.9 million at 31 August 2003. Operating cash flows were
a record $6.1 million for the year, which enabled the company to invest in
considerable research and development and still maintain the overall strength
of its balance sheet. At balance date the company had no long term debt and
cash on hand of $1.9 million.
In line with the Directors' commitment to maintain a relatively high dividend
pay out, a final dividend of 7 cents per share has been declared, bringing
the total dividend for the year to 13 cents per share. This total dividend
is payable on the capital increased by last year's one for eight bonus
dividend, whereas last year only the final dividend of 8 cents per share was
paid on the increased capital. The total dollar dividend paid to
shareholders remains at a similar level to that paid in respect of the year
to 31 August 2003. The dividend will be fully imputed and a supplementary
dividend will apply to overseas shareholders.
The company's strategic move to diversify its markets geographically is
producing real benefits with major contracts completed or currently being
built for customers in China and the recent $8.0 million contract for
appliance line equipment for a major appliance manufacturer in Turkey.
The company's marketing branches in Dallas U.S.A., Shanghai China, and Sydney
Australia enable the company to effectively market on a global basis.
Scott Technology is in an excellent position to pursue profitable growth with
a strong balance sheet, reflecting no debt, significant cash and valuable
freehold properties in Christchurch and Auckland.
The company is pleased to report that it currently has a record level of
forward orders which have been secured from various countries. We expect our
2005 sales to increase and the current business plan provides for improved
productivity and smarter manufacturing efficiencies as well as increased
offshore sourcing of purchases to partly offset the impact of the relatively
high New Zealand dollar.
The company has been successful in its strategic move to diversify into other
markets, with its range of robotics, and in particular, within the food and
beverage and meat processing industries. The Directors are committed to
investing for the future and the company has again expensed significant
research and development costs during the year. The joint venture with PPCS,
the giant New Zealand meat marketing company, is an important element of our
diversification strategy and also features strongly in PPCS' own drive for
The company has generated much interest in this exciting new technology with
investment already secured from Australia. There is further potential to
transfer this technology from lamb and sheep to other species, such as beef
Scott Automation's Auckland business unit continues to move up the high
technology scale and has recently completed the design, build and
installation of a major robotic automated warehouse system which will provide
a valuable reference site for our automated storage and retrieval solutions
programme. A License Agreement with an American company, AFT Inc., has
recently been signed to enable Scott to market their automated systems
throughout New Zealand, Australia and Asia.
During the year the company achieved a good result, produced a record
operating cash flow, strengthened its balance sheet, completed development of
the Auckland freehold property, invested substantially in research and
development in meat robotics, paid $3.5 million in dividends to shareholders
and built a substantial forward work load and enquiry base, whilst preserving
its cash on hand and making significant advances in its diversification goal.
The Directors currently expect another successful year and confirms its
commitment to the pursuit of growth and increased efficiency to provide
sustainable rewards to all stakeholders.