Listed Scott Technology's return to a before-tax profit of $390,000 follows a turbulent year in which customers cut back on capital expenditure and the New Zealand dollar appreciated almost 45%.
While pleased with the result and having a good forward order book, the volatility of the New Zealand dollar remained a "headwind and wildcard" in determining Scott's competitiveness in the year ahead, managing director Chris Hopkins said.
Scott's share price rose 2% to $1.01 yesterday after the news, having traded between 70c and $1.40 during the past six months.
Scott's Dunedin operations concentrate on a robotics joint venture with Silver Fern Farms, its Christchurch-based operation which produces automated assembly lines and are sold around the world, as are products from its Auckland-based Rocklabs mine-engineering division.
Craigs Investment Partners broker Peter McIntyre said considering the trading environment, Scott's increased cash-flows, from $27.8 million to $29.6 million, were a good sign, as was a 1c per share dividend this year, compared to nothing last year and 6c two years ago.
Operating revenues were up from $25 million on the corresponding period a year earlier to $31.3 million, but Mr Hopkins said the past year had seen "one of the most turbulent economic downturns of our times".
Present work includes contracts in Spain and North America, finishing a job in China and forward orders for companies in Turkey, Australia, New Zealand and North America.
Mr Hopkins said Scott had a strong balance sheet supported by $35.4 million in total assets, "modest" bank debt of $4.5 million and $1.5 million cash-in-hand, for the year ended August.
Last year's $800,000 after-tax loss could have been three-fold worse had it not been for its acquisition of Auckland-based mining sector manufacturer Rocklabs.
In the past financial year, Rocklabs was hit by the resource sector's "dramatic" downturn and its profit before tax fell from $1.1 million the previous year to $699,000,
