Scott Technology faces 'constrained market' as profit jumps

By Phil Boeyen, ShareChat Business News Editor

Wednesday 18th October 2000

Scott Technology is warning of tougher times ahead on the back of an improved after-tax profit of $3.57 million. The result for the year to the end of August is 24% higher than last year's $2.89 million.

The company, which specialises in designing and making large-scale automation systems for major domestic appliance companies, has declared a 6.5 cents per share final dividend.

Sales revenue rose to $30.7 million from $27.4 million last year, which the company says reflects expanded capacity.

SCT's directors say they are expecting a challenging year ahead as the levelling of economic activity in many of its international markets indicates that renewal and replacement in the world-wide appliance industry will be constrained over the next several months.

However the company adds that it is financially strong and well positioned to benefit from an upturn in economic activity in global appliance markets. During the year it entered into its first strategic alliance with a European company.

SCT shares closed up 10 cents Wednesday at $2.40.

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