Dunedin company Scott Technology has posted a $5.14 million after-tax profit, but despite the 16% decline gave shareholders a extra special ''centenary'' dividend, in the face of continuing battles with the high New Zealand dollar.
Revenue for the trading year to August, including 87% derived from overseas markets, declined from $63.7 million to $60 million, with earnings before interest and tax down from $8.7 million to $7.1 million and after-tax profit down from $6.1 million to $5.14 million.
Scott chairman Stuart McLauchlan said while the result was down on last year's record profit, it did not diminish what was an ''excellent result'', given the continued high kiwi which had ''tightened margins and reduced profits''.
Scott begins its second century of operations with a full project order book and strong balance sheet, Mr McLauchlan said.
Scott has in recent years branched out from manufacturing assembly lines to industrial robotics, specialists motors and several mining niche market ventures, and most recently trials in the dairying sector.
Craigs Investment partners broker Chris Timms said Scott had had to contend with not only the high kiwi but softening demand in many offshore markets.
''Scott have become far more diversified over the past five years and shareholders recognise they are not just aligned to any one market. Its a very satisfactory result, given the headwinds,'' Mr Timms said.
The special ''centenary divided'' of 2c per share takes the full-year dividend to 10c.
Scott shares had a year-low last October of $2.05, then a year-high in February of $2.84. The share price rose 2.2% to close at $2.30 yesterday.
Mr McLauchlan said despite the margin squeeze and high kiwi, new technology developments continued. He noted overseas revenues were almost $52 million, up from 86% last year to 87%, and during a slowing in the mining sector.
Scott chief executive Chris Hopkins said the company's China factory was running close to capacity and expansion plans were progressing for several China projects, which were being designed and built at Scott's Dunedin and Christchurch factories.
''Although our recorded sales to Asia are lower than prior years, our forward work includes multiple appliance projects destined for China,'' Mr Hopkins said
Scott's appliance-manufacturing systems markets remained ''challenging'' but four assembly lines were being built for the US market, with ''high expectations'' of more orders, plus future China prospects.
Two ''significant'' robotic meat-processing systems were being commissioned, Mr Hopkins said.
The mining sector equipment market ''performed well'', albeit to a backdrop of declining exploration and production, while the electromagnet business was slowing but had been boosted recently by orders and strong prospects.
Earlier this month Scott bought the leased Auckland properties where subsidiary RockLabs has been for several years, for $3.2 million.
