Freshly streamlined automation and robotics company Scott Technology has returned to profit.
The company reported a net profit $9.5m for the year to August after restructuring costs took the company to a $17.5m loss in the prevoius year.
Scott’s EBITDA came to $22.1m from a loss of $11.6m loss a year earlier.
Revenue jumped by 16 per cent to $216.2m, and its gross margin went from 13 to 23 per cent.
The company also announced it had signed a $20m contract to deliver an automation solution for a US-based, leading global appliance manufacturer.
It also has a strong programme of forward work with new system design and build contracts in Europe, the United States, China, and Australasia, and continuing growth in product and service businesses.
Scott will pay a 4.0c per share dividend.
“The results demonstrate double-digit growth in both revenue and margin, affirming the progress made with the Scott 2025 strategy, and as each of the regions reach different stages in their recovery from Covid-19,” Scott said.
Although all three of Scott’s categories have achieved significant revenue growth, the products category grew the most (30 per cent), taking its share of total revenue to 23 per cent, up 250 basis points.
“The streamlined operating cost structure now in place following last year’s restructuring activity, has supported an increase in margins in each of the Scott regions.”
Chief executive John Kippenberger said the company’s policy of generating more revenue from proven systems, products and services was paying off.
The group also captured the benefit from last year’s significant “right sizing” programme, with employee numbers now 622 in FY21, down from 784 for 2019.
Kippenberger said the company had successfully recovered its base business operating performance from the harsh impacts of 2020.
He said Scott was positively positioned to achieve sustained, profitable growth “for years to come”.
Shares in Scott rallied sharply, post result.
They last traded at $3.08, up 29c or 10.4 per cent.