Strong demand boosts Scott

NICHE Dunedin engineering and robotics company Scott Technology has reported a 19% revenue boost to its firsthalf trading, driven by strong demand for its automation and robotics technology.

Total revenue for Scott’s half year to February was up 19% to $67.5 million, earnings before interest and tax rose 25% to $6.4 million and aftertax profit rose from $2.88 million to $3.15 million.

Scott’s dividend was unchanged at 4c per share. Its shares, up more than 19% on a year ago, rose slightly after the lateafternoon announcement, trading at $3.40.

Against a year ago, Scott’s cash and cash equivalents declined from $32.8 million to $21.6 million, which had been boosted by food giant JBS having taken a 50.1% controlling stake in April 2016, leaving Scott with $25 million cash and debtfree at the time.

Last October, Scott booked a strong fullyear result, as its revenue was up 18% to $132.6 million and beforetax profit up 35% to $14.9 million.

In its halfyear trading update, Scott said strong orders during recent months had pushed forward work for large projects to a record high and the company expected to be operating at near full capacity.

‘‘As part of this, our plans for the Dunedin site expansion are complete, awaiting final building consents,’’ the company said.

There was ‘‘major growth’’ during the halfyear in the Americas, Asia and Europe: revenue in those areas rose 74% to $20.1 million.

‘‘This international growth is underpinned by the continued rollout of our Bladestop bandsaw safety technology beyond Australasia and further supported by strong demand for our automated systems in Germany, China, and the USA,’’ the company said.

The company said growth in the sale and uptake of its meatprocessing technologies was expected to accelerate during secondhalf trading following a longerthanexpected completion time for earlier projects and a period of reduced Australian activity.