The growth experienced by Scott Technology Ltd (NZX: SCT) in the latest half year was driven by organic activities, through uptake of the company’s own developed technologies and continuation of the trend set in the prior year.
Reporting on the half year to February 28, chairman Stuart McLauchlan and managing director Chris Hopkins said the six months performance was 13% better than the first half of fiscal 2017.
For this six months, Scott’s EBITDA of $6.4 million was an increase of 25% over the previous corresponding period and delivered 4.2 cents earnings per share.
Total revenue of $67.5 M was a 19% increase on the figure for 2017.
“Scott Technology continues to see strong demand for our automation and robotics technology and capability,” McLauchland and Hopkins reported.
“A strong order intake over recent months has pushed forward work for large projects to a record high and we anticipate operating at near full capacity providing the confidence to continue to expand our capabilities in certain areas.”
Plans for site expansion for the Dunedin site now await final building consents.
Completion of the acquisition of Alvey Europe supports Scott’s strategy to grow its skill base and to establish critical mass in key markets.
The balance sheet was strong with cash of $21.7 M which was expected to be utilised in the next growth phase.
Scott said major growth occurred within the company’s activities in the Americas, Asia and Europe. Collectively, revenue across these geographies increased 74% to $20.1 M.
This international growth was underpinned by the continued rollout of the Bladestop bandsaw safety technology beyond Australasia and supported by strong demand for automated systems in Germany, China, and the US.
In Australia and NZ operating margins improved slightly on revenues that increased 5% over the previous corresponding period.
“The commitment to develop technologies and capabilities is significant and spread across all areas of the business,” the report added.