Engineering company Scott Technology reported half-year net profit before tax of $1.4 million, up from a $748,000 loss a year earlier.The company, which specialises in the design and manufacture of automated production and process machinery, said improved
Engineering company Scott Technology reported half-year net profit before tax of $1.4 million, up from a $748,000 loss a year earlier.
The company, which specialises in the design and manufacture of automated production and process machinery, said improved performance and trading conditions seen in the second half of 2009 had continued into the first half of 2010.
For the six months to February 28 revenue rose to $20.3m from $13.5m a year earlier, while the net surplus after tax for the latest period was $973,000, compared to a $474,000 loss in the six months to February 2009.
The Dunedin-based company said that during the latest half year it secured significant system sales within the appliance, precious metals and meat processing markets. Contracts for new projects destined for Australia, Brazil, China, Chile and the United States had stretched the company's capacity to a point where it needed additional resources.
In addition to those new projects, the company had been working on production lines for customers in Australia, Turkey, the US and Spain, Scott Technology said today.
Increased activity continued within the meat processing market and had been boosted by the establishment of Scott Technology Australia in Sydney.
The global appliance market had risen in the past six months, with inquiries increasing toward normal levels. That was also being seen in the company's minerals and precious metals markets.
A previously announced interim dividend of 1.25c per share was being paid today, while a one for 10 non-taxable bonus issue made immediately before the payment also participated in the dividend.
Scott Technology shares were unchanged at $1.20 about 30 minutes after the result was published.
