SCT - Scott Tech

[percy]

Article on SCT's major shareholder.
https://sendy.tarawera.co.nz/l/J6oLV...pD2BD214kxFVcw

[Snoopy]

Article on SCT's major shareholder.
https://sendy.tarawera.co.nz/l/J6oLV...pD2BD214kxFVcw

Actually that is more an article on 'the major shareholder' (somewhere up the chain) of SCT's 'major shareholder'. It is all rather old news. The NZ market authorities don't care much for the Batista brothers of Brazil, and do not consider them people of good character. But JBS Australia is run by one of our own: Brent from Invercargill. There are no smears on Brent's shirt -which is why the NZ market authorities are happy to happy to have 'JBS Australia' as SCT's majority shareholder.

SNOOPY

[winner69]

Hey snoops …I see they’ve changed Von Tempsky St in Hamilton to some else

What happened to your mate Major von Tempsky

[Snoopy]

Hey snoops …I see they’ve changed Von Tempsky St in Hamilton to some else

What happened to your mate Major von Tempsky

I thought he might have retired to the canals of France like our old mate Phaedrus, Winner.

But he still seems to be around Christchurch, and is Vice-President, and Treasurer of Alliance Francaise de Christchurch, and is still a member of the Shareholders association. Probably a better fate than the original Major?

SNOOPY

[winner69]

I thought he might have retired to the canals of France like our old mate Phaedrus, Winner.

But he still seems to be around Christchurch, and is Vice-President, and Treasurer of Alliance Francaise de Christchurch, and is still a member of the Shareholders association. Probably a better fate than the original Major?

SNOOPY

Thanks Snoopy

[Sideshow Bob]

Scott announces record USD $35m deal into North America - NZX, New Zealand’s Exchange

SCOTT ANNOUNCES RECORD USD $35M DEAL TO EXPAND MATERIALS HANDLING BUSINESS INTO NORTH AMERICA

Project with JBS Canada will see first Scott end-to-end MHL system installed in the region

Auckland, New Zealand: Scott Technology (NZX:SCT) is pleased to announce that it has signed a non binding memorandum of understanding to deliver its first fully automated warehousing system for JBS Canada’s Brooks plant in Alberta, which has an estimated value of USD $35 million (NZD $56m).

The project will be the largest ever in Scott’s history and will see them integrate existing technology from across the group, together with systems from its joint venture partner Savoye to design and build a complete end-to-end material handling solution capable of handling 85,000 cartons.

Scott Technology CEO John Kippenberger says he is excited to combine their proven technology, with Savoye’s proprietary components to deliver a world-class solution for JBS. “In 2020 we signed a joint venture agreement with Savoye to use their automated carton storage and retrieval technology to expand our Scott material handling system offering. With this JBS transaction, we will deliver a truly end-to-end solution, integrating the Savoye tech seamlessly with Scott’s own conveying, sorting and palletising applications.

“As part of our Scott 2025 strategy, we committed to expanding our proven materials handling business outside of its European stronghold and into the North American market, with a particular focus on frozen foods and meat processing. Our partnership with Savoye was the first step and today’s announcement demonstrates that we are delivering on our plan,” says Kippenberger.
The JBS facility in Brooks city is one of the largest beef processing facilities in Canada, employing over 2,800 people. The new Scott automated solution will replace a fully manual system, increasing product handling efficiencies by allowing more flexible, high speed carton sortation and management.

“Like New Zealand, North America continues to experience labour supply issues, particularly in the meat processing space,” says Kippenberger. “The new system will not only address this challenge, but it will also improve safety as one carton can weigh up to 50kgs, reduce storage costs, errors, and deliver improved inventory turns. It represents significant efficiencies and cost savings for JBS Canada.”

Specifically, the system will manage 600 SKUs (Stock Keeping Units) in a highly flexible manner, allowing for optimised order management. It will enable picking of 3,000 cartons per hour, shipping of 40,300 cartons per day, high-speed palletising of 120+ pallets per hour and provide high-density storage for 85,000 cartons. It will integrate with Warehouse Execution Software for complete monitoring, management, and control of goods.

The project will be supplied from Scott’s facilities in Europe, the company’s centres of excellence for materials handling technology. Scott’s AGV components will be supplied out of Scott USA.

Entry into the JBS transaction is being undertaken without shareholder approval in reliance on a waiver from NZX Listing Rule 5.2.1 granted by NZ RegCo on 31 May 2022.

[BlackPeter]

Scott announces record USD $35m deal into North America - NZX, New Zealand’s Exchange

SCOTT ANNOUNCES RECORD USD $35M DEAL TO EXPAND MATERIALS HANDLING BUSINESS INTO NORTH AMERICA

Project with JBS Canada will see first Scott end-to-end MHL system installed in the region

Auckland, New Zealand: Scott Technology (NZX:SCT) is pleased to announce that it has signed a non binding memorandum of understanding to deliver its first fully automated warehousing system for JBS Canada’s Brooks plant in Alberta, which has an estimated value of USD $35 million (NZD $56m).

The project will be the largest ever in Scott’s history and will see them integrate existing technology from across the group, together with systems from its joint venture partner Savoye to design and build a complete end-to-end material handling solution capable of handling 85,000 cartons.

Scott Technology CEO John Kippenberger says he is excited to combine their proven technology, with Savoye’s proprietary components to deliver a world-class solution for JBS. “In 2020 we signed a joint venture agreement with Savoye to use their automated carton storage and retrieval technology to expand our Scott material handling system offering. With this JBS transaction, we will deliver a truly end-to-end solution, integrating the Savoye tech seamlessly with Scott’s own conveying, sorting and palletising applications.

“As part of our Scott 2025 strategy, we committed to expanding our proven materials handling business outside of its European stronghold and into the North American market, with a particular focus on frozen foods and meat processing. Our partnership with Savoye was the first step and today’s announcement demonstrates that we are delivering on our plan,” says Kippenberger.
The JBS facility in Brooks city is one of the largest beef processing facilities in Canada, employing over 2,800 people. The new Scott automated solution will replace a fully manual system, increasing product handling efficiencies by allowing more flexible, high speed carton sortation and management.

“Like New Zealand, North America continues to experience labour supply issues, particularly in the meat processing space,” says Kippenberger. “The new system will not only address this challenge, but it will also improve safety as one carton can weigh up to 50kgs, reduce storage costs, errors, and deliver improved inventory turns. It represents significant efficiencies and cost savings for JBS Canada.”

Specifically, the system will manage 600 SKUs (Stock Keeping Units) in a highly flexible manner, allowing for optimised order management. It will enable picking of 3,000 cartons per hour, shipping of 40,300 cartons per day, high-speed palletising of 120+ pallets per hour and provide high-density storage for 85,000 cartons. It will integrate with Warehouse Execution Software for complete monitoring, management, and control of goods.

The project will be supplied from Scott’s facilities in Europe, the company’s centres of excellence for materials handling technology. Scott’s AGV components will be supplied out of Scott USA.

Entry into the JBS transaction is being undertaken without shareholder approval in reliance on a waiver from NZX Listing Rule 5.2.1 granted by NZ RegCo on 31 May 2022.

Confused - did they sign a deal or did they sign a non binding MoU? A deal is a deal, while a non binding MoU is an agreement to establish a discussion platform for talking about a deal which first needs to be defined and which may or may not eventuate?

Are they saddling the horse from the tail? ... starting with the announcement and doing the negotiations afterwards?

[percy]

http://nzx-prod-s7fsd7f98s.s3-websit...746/378958.pdf

[Sideshow Bob]

https://www.nzx.com/announcements/400761

SCOTT TECHNOLOGY ANNOUNCES FY22 RESULTS: FOCUS ON CORE STRATEGIC PRIORITIES DELIVERS GROWTH

• The Engineering Scott to High Performance 2025 strategy continues to provide momentum and guide the business focus on its core sectors of meat, materials handling and logistics and mining, where it has proven world class technology with strong commercials

• The sales and services of these three core sectors delivered 75% of group revenue and 90% of margin

• Group revenue (from continuing operations) was up 8% to $222m, margins grew to 24% despite inflationary and supply chain pressures. EBITDA increased 14% to $24m while net profit after tax (from continuing operations) was up 51% to $12.7m

• Record $190m of forward work across on-strategy meat and mining solutions, combined with demand for the higher margin mining products, BladeStop and service businesses

• Dividend of 4.0 cents per share declared to take full year total to 8.0 cents

[Snoopy]

CEO of two years, John Kippenberger , has certainly made his mark on Scott Technology. JK is the architect of the "Scott 2025" vision, and its three pronged 'Systems', 'Products' & 'Services' approach. Gone is the ambition to be 'the global leader in automation'. Instead Scott's is re-orientating, looking at niche project areas, where Scotts have achieved success (rather than taking on any challenge - which technically they could do - but at an unforecastable cost).

Products

There is a big new emphasis on 'standard products', and Scotts have identified three 'core standard products'.

a/ Rock crushing and pulverizing equipment and supplying what is termed 'reference material'. This is selling equipment central to 'medium scale mining' lab analysis (testing what is actually being dug out of the ground) - a truly globally market. This 'product' is from the 'Rocklabs' business unit, based in Auckland, New Zealand.

b/ The 'Bladestop' safety bandsaw, features dual acting switching technology, to all but eliminate the possibility of maiming the bandsaw operator. This was developed for the meat industry, but has other potential applications. The technology was developed in Australia, and the IP was subsequently bought by Scotts in 2016. 'Bladestop' is manufactured by Scott’s Australian subsidiary, Scott Automation & Robotics Pty Limited.

https://www.nzx.com/announcements/291423

c/ Selling new and refurbished industrial robots under the 'RobotWorx' brand, both in the USA and Australia.

The thinking behind this 'product' strategy: if you have technically superior product, then you have 'brand recognition' and 'pricing power'.

Systems

'New thinking' has rolled into the manufacture of production lines for the world's appliance manufacturers (long a mainstay of Scott revenue) as well. From p21 AR2021 "Our goal is for production lines in the future to be at least 80% standardised."

Certainty = Cost Control = Predictable Profits

is the new Scott 'equation'.

Services

More new thinking has gone into the servicing arm of the business. From AR2021 p18

"We`re proactively seeking to become a service business, verses re-actively doing it where we can. This means we are introducing servicing earlier in the project process (at the point of sale), rather than it being an after thought." (includes regular servicing and preventative maintenance.)

This isn't just words. Scott's are about to increase the number of service technicians in each country in which they operate.

Selecting the markets in which you have greatest advantage, and successfully executing that strategy, makes answering the question at the head of this post easy.

Conclusion: Pass Test

3M, the NYSE listed multinational corporate is known as a 'clever tech innovator' in the business space. Now New Zealand has their own 3M in the form of listed company 'Scott Technology'. The eMs in this case refer to Material handling, the Meat Processing Industry and Mining Adjunct Equipment. These are the three 'standard product' industries where Scott's have 20 years or more of specialist industry expertise.

1/ Material Handling

This is the old Alvey group business, purchased as a going concern by Scott's in FY2018 and headquartered in the Belgium and the Czech Republic in Europe. Much of the Alvey division's work is with palletising and packaging food for international brands such as McCain, Danone and Friesland Campina (a Dutch dairy multinational). Acquisition by Scott's has allowed branching out into new geographic markets with materials handling installations in Canada and New Zealand. In terms of revenue, this is the largest part of the Scott business (about one third).

Added to Alvey is the US based Transbotics business unit, which specialises in self guided automated trackless transportation trolleys for industrial use.

2/ Meat Processing

Meat processing's flagship project, the now successfully integrated 'automatic boning room', is built around processing of lamb carcasses. Globally lamb is a 'minority meat'. But 18 wholly or partly automated lamb boning rooms have been sold across Australasia, representing $180m in cumulative sales (PV = $10->15m per installation today). Scott's estimates that the 60% of our regional lamb processing market that remains unautomated is 'ripe for the picking'.

The second string to Scott's meat automation bow is the automated poultry trusser. 'Trussing' is the term used when a plucked and de-headed chicken is packaged up ready for sale with string, tying the wings and legs of the bird carcass tightly to the body. This keeps the processed chicken 'compact' for packaging and rotisserie cooking purposes. A Scott robotic trussing system ($1.7m for a 24 birds per minute system) is capable of processing a single chicken in five seconds. The opportunity within the US market alone is estimated at 150 machines.

The third product, 'Bladestop' is an industrial band-saw with a twin safety mechanism that makes it almost impossible for an operator to injure themselves. This product is applicable to more manual meat processing, such as occurs in the beef industry. 'Bladestop' (around $70k per unit) currently has a 9% market share in the US, and shows further promise of being a sales prospect for non-protein based applications.

The above three 'standard products' all have patent protection in the markets in which they are sold.

3/ Mining Adjunct Equipment

Rocklabs, based in Auckland, does not supply mining equipment for pulling minerals out of the ground. What it does do is provide automated equipment to crush down and analyse drilling samples. That means those companies mining certain mineral veins know exactly the composition of material is that is being dug out. This is important information in assessing the ultimate yield of the raw material a company is mining. Rocklabs have a globally wide and loyal client base.

Normally, to do this testing, some form of comparative assay material is required. Rocklabs can supply such material.

A further 'mining aid' is Scott's robotic fuel filling system. An on site mining truck can be a very large beast, not suitable for driving on a public road. Typically the wheel height might be the height of a person. So reaching up to refuel such a thing, in hot weather, can be a demanding physical task. Scott's Australian business has developed a robotic arm automated refueling system to solve this problem.

4/ And 'oh yes' Scott's has a 'non-core business' arm too, and it makes up just under 25% of company revenue! Very curiously it wasn't even mentioned in the annual report text by name (although it was in a couple of photographs). This is the 'Appliance line manufacturing business', where the competition has been either from co-operative European consortiums in Spain and/or Italy, or the Appliance manufacturer doing the project 'in house' themselves.

As the producer of patent protected technology for niche applications, Scott's certainly ticks the 'top three in their chosen market' box. Even in the more contested Appliance line manufacturing business, Scott's seem to end up in the top three for customer choice.

Conclusion: Pass Test

SNOOPY