Scott Technology Limited Analysis

Overview

The shares were listed in July 1997 following an "in specie" share distribution to shareholders of formerly listed Donaghys. It is a high technology engineering company, which specialises in the design and build of automated lines for the international appliance industry.

Virtually all sales are from exports, with principal markets in the USA, Central and South America, Europe, and Australia, with recent successes also in China, Mexico and Canada. Recent developments have been an alliance with high technology engineering group Modular Automation of the UK (1999), which strengthens the company's marketing and after sales services in Europe, formation of Dunedin-based Scott Automation (2001) to focus on local non-appliance industries, a partnership with KUKU Robotics of Germany (2001), which was designed to assist with developing applications of automation for industry outside of appliances, and acquisition of CBS Engineering Ltd, an Auckland based automation and materials handling company (2002).

In 2003 the company established a representative office in Shanghai. In 2006 it sold its Auckland division, Package Handling Systems.

SCT announced on 26 May 2008 that it had completed the acquisition of Auckland based manufacturer, Rocklabs Ltd. The remaining conditions of sale are expected to be satisfied in June. Rocklabs makes mechanised and automated sample preparation equipment and supplies gold reference materials to the mining industry.

Performance

The following information was extracted from Scott Technology Limited's full year results, released on 21 October 2025:

Financial Highlights

• Group revenue: $275m in-line with FY24.

• Second half revenue growth of 13% offsetting softer first half.

• Service revenue contribution: $80m, 29% of total revenue (up from 28% in FY24).

• Group net margin improved to 29%, from 27% in FY24.

• Record EBITDA: $31.5m, up 19% from $26.4 million in FY24.

• NPAT: $14.2m up 84% from $7.7m in FY24.

• Operating cash flow improved to $22.3m, compared with $6.0m in FY24.

• Net debt reduced to $12.3m, reflecting improved cash flow and disciplined capital management.

Financial Performance

Group revenue for FY25 was $275m, compared to $276m in FY24. With revenue down 14% at the half-year, this near full recovery highlights the momentum built in the second half. This was supported by multiple contract wins across the Group and improved sales for our standard products and recurring revenue streams. Service revenue grew to $80m, now contributing 29% of revenue up from 28% in FY24, with a continued focus on recurring revenue.

Group net margin improved to 29% from 27% in FY24, reflecting disciplined execution and a focus on higher-value opportunities. EBITDA margin was also supported by a disciplined approach to costs while ensuring sustainable future earnings.

While overall revenue remained steady at $275m, reported EBITDA reached a record $31.5m, up 19% from $26.4m in FY24. This uplift was supported by higher-margin contracts, project execution, a reset cost base and improved business mix. NPAT rose to $14.2m, up 84% from $7.7m in the prior year.

Operating cash flow improved significantly to $22.3m, compared with $6.0m in FY24. This was driven by securing key new projects, effective working capital management and disciplined cost control, facilitating a 39% decrease in net debt to $12.3m. Investments were directed towards regional plant upgrades and strategic asset developments.