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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:
1,200; (228.6%)
Interim Dividend
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
WELLINGTON
Dear Sir/Madam
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 company.
Yours faithfully
Graeme J Marsh Chris Hopkins
Chairman of Directors Managing Director
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