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Scott Tech posts a loss but is confident

Scott Technology posted a final operating loss of over $ 17 million, but automation and robotics companies say they are well-positioned to recover in 2021.

The company announced its full-year results until August 31, yesterday, a busy and difficult year.

After the company reported a net loss of $ 17.5 million, the board decided not to pay dividends for the year.

Revenues decreased $ 39 million to $ 186 million and ebitda (interest, taxes, depreciation and profit before amortization) was $ 11.6 million, a decrease of $ 8.4 million compared to 2019.

If the company did not include non-trade adjustments such as government wage subsidies that received $ 2.8 million, ebitda would have fallen further to $ 3.7 million.

Other aspects of non-trading adjustments included restructuring costs ($ 4.3 million), amortization and loss of income ($ 13.8 million) from Australian assets that were not in line with Scott’s new strategy.

Scott said the results reflect “the significant impact Covid-19 has on the business,” the end of some legacy projects, restructuring, and write-downs on non-core assets.

This year’s project was delayed due to travel and restricted access to the site, and some customers postponed their investment.

“Fortunately, many of these projects are now back online, and demand for automation is growing in some regions and sectors,” Scott’s 20-year report said.

The company’s balance sheet ended the year with a net cash position of $ 7.7 million, with a total bank term loan of $ 11.2 million.

Chairman Stuart Mack
Laukran said he is confident in the company’s new strategy focused on meat, mining, appliances, industrial automation, material handling and logistics.

“The number of FY20 headlines is not what we wanted, but we are confident that our new strategy will return to sustainable and profitable returns over the next few years.”

The company said many of its target industries and regions began to turn corners after the first shock of the Covid-19 pandemic.

“Long-term demand for smart automation and robotic solutions is expected to remain strong, driven by companies that want to reduce labor costs, increase safety and improve efficiency.”

Last month, Scott announced a $ 12.5 million deal to build the Alliance Group’s X-ray ram watering system at its Loneville plant near Invercargill.

“A more efficient organizational footprint will firmly support the company,” Scott said in preparation for pandemic-related challenges.

CEO John Kippenberger said the company wants to build long-term relationships with clients such as alliances around the world.

“The two existing examples in North America over the last six months have moved from focusing solely on the completion of one stand-alone system to an agreement that customers will use multiple repeat systems over the next three to five times. I did. Year. “

Scott Tech posts a loss but is confident

Source link Scott Tech posts a loss but is confident

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