Shareholders of the diverse technology, robotics and mining service company Scott Technology Ltd (NZX: SCT) were told at this week’s annual meeting that the key highlight was a show strong revenue increase of 37%, delivering operating EBITDA of $19.8 million, up 21% on 2017.
Managing director Chris Hopkins said the bottom line result for shareholders is an earnings per share increase of 8% to 14.3 cents per share.
“Our operating cash flow was impacted by a working capital increase as a result of acquisitions and also utilised to fund the rapid growth,” he said.
The two acquisitions completed in the year has effectively consumed all surplus cash. The final dividend of 6 cents per share should have hit shareholder bank accounts in recent days, and takes the total full year dividend to 10¢/share.
Business revenues increased 14% to $151 M, with operating EBITDA increasing 11% to $18.2 M.
Results reflect Scott products produced in Australia and NZ have been “reasonably static” on 2017, with major growth coming from the Americas, Asia and Europe.
Working capital has increased significantly to support growth.
“The extent and effectiveness of our working capital management is a current focus within the business and an integral part of our post acquisition integration plan.
“The five year annual growth rate of 31% across the business is a marvellous achievement and highlights the underlying strength of Scott capabilities and expertise, Hopkins said.
He said Scott now has strong research and development. Automatic guided vehicles the Transbotics facility have already been sold into Australia and the UK, and opportunities for Alvey technology have been opened up in the US, Australia and NZ.