Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), has today released its unaudited
interim results for the six months to 28 February 2021 (H1 F21).
In summary:Positive momentum as the Scott 2025 strategy takes hold, delivering a streamlined cost structure, a focus on core areas
of proven expertise and improved performanceYear on year increases in revenue and EBITDA and strong gross margin improvementRevenue up 5% to $104.5m, gross margin up 28% to 23%, EBITDA of $11.2m and net profit after tax of $4.7mStrong programme of forward work with new system design and build contracts in Europe, USA, China and Australasia and
continuing growth in product and service businessesDividend declared of 2.0 cents per share
The results reflect the positive momentum being gained as the Scott 2025 strategy takes hold and as most regions commence the recovery from COVID-19. This has seen forward work programs in
Europe, USA, China and Australasia grow firmly from this time a year ago as new system design and build contracts have
been awarded at a steady and focused pace over recent months.
The product and service businesses of Scott are continuing to show strong recovery and positive margin performances. The
mining products and parts business - Rocklabs - together with the BladeStop product revenues into the meat industry are
showing strong growth on prior year. Service revenues across several key markets are also growing as the team places
increasing importance on executing up-front service level agreements with key customers.
These revenue streams are all supported by the streamlined operating cost structure now in place following last year’s
restructuring activity across all regions and Group head office. This is seeing an increase in margins.
The focus on employee health and safety across the Group is reflected in a large increase in reported near-misses – seen
as a forward-looking indicator as avoids potential future risk – while the ‘lag’ indicators of lost time injuries fell
to zero at the half year. This is great progress and a result of the deep and sincere commitment from employees across
the Scott Group.
CEO of Scott Technology John Kippenberger, said: “Despite the ongoing disruptions of the global pandemic and the
pressures this continues to place on our international operations and travel, the team at Scott has demonstrated strong
progress with our new focused strategy, including positive strides forward on team safety and earnings performance.
Our priority remains to deliver in our proven areas of expertise in systems technology, products and service. As the
world begins to slowly open up as vaccines are rolled out, we are confident of building on the early positive momentum
seen in H1 F21”.
The full announcement and presentation are attached and can also be viewed online here https://www.nzx.com/announcements/370356