SCT - Scott Tech

[Davexl]

Good news!

FURTHER CONTRACT WIN STRENGTHENS SCOTT TECHNOLOGY’S POSITION IN MINING SECTOR

Automation and robotics solutions provider, Scott Technology (NZX: SCT), has been awarded a further multi-million dollar contract by Rio Tinto to provide and commission the equipment for a new sample preparation and analysis laboratory at the Robe Valley mine site in Western Australia.

Not sure why this announcement was listed as Not Price Sensitive! SP up 12% at one point at $1.90.

https://www.nzx.com/announcements/357571

Thanks Snoops for finding my Robotics article interesting...pleased it was useful

https://asiatimes.com/2020/08/us-chi...al-robot-race/

[Snoopy]

Good news!

FURTHER CONTRACT WIN STRENGTHENS SCOTT TECHNOLOGY’S POSITION IN MINING SECTOR

Automation and robotics solutions provider, Scott Technology (NZX: SCT), has been awarded a further multi-million dollar contract by Rio Tinto to provide and commission the equipment for a new sample preparation and analysis laboratory at the Robe Valley mine site in Western Australia.

Not sure why this announcement was listed as Not Price Sensitive! SP up 12% at one point at $1.90.

https://www.nzx.com/announcements/357571

Once again the wisdom of acquiring Rocklabs in 2008 has come through. Although my memory of the acquisition was that principal Ian Devereux, working in Auckland but an Otago boy by birth, was at an age that he wanted to ease out of the business that he had founded in 1969. It was Ian who sought out Scott Technology as a suitable manager of his business going forwards, not the other way around. Thus marked the start of Scott Technology's years as an 'NZ technology aggregator'. A company set on taking research projects onto the next commercial level. It has to be said that subsequent acquisitions were less successful. 'New broom' John Kippenberger has either closed them down or sold them off. Of course even before the arrival of JK as MD, we had JBS come on board as a controlling shareholder. And that has focussed future developments very much on the meat industry automation market.

On the face of it 'Rocklabs' is not a core business for Scott's anymore. For Scott's as a 'global automation business' there was very little automation in the Rocklabs core product of mineral sample testing machines. In fact I think all of the automated side of the 'automated sample preparation and analysis' is no longer done at Rocklabs Auckland base. IOW there is enough baseline work going through Rocklabs to sever all pretenses of being an 'automation company'. But there is one very important sense in which Rocklabs is core to Scotts. Rocklabs makes money! And it does so in both good and bad years. Unfortunately we can't say the same for the rest of the Scott's business units which are more 'boom and bust'. When Scott's had a bad year, invariably we got regaled with stories of how well Rocklabs was doing. On this historical precedent, that means FY2020 for Scotts will be an awful year. But, judging by the share price, I imagine the market is already looking through this, and is looking towards FY2021.

One very encouraging aspect of this latest project for Rio is that it is 'repeat business'. When Scotts know exactly what they are doing from 'day 1', there is good money to be made from such projects. As a shareholder all I can say is 'roll on 2021', as I don't see any profit contribution to the bottom line of Scotts from this latest project until then :-(.

SNOOPY

[Snoopy]

An item in the farming section of today's Christchurch Press about the Alliance Group installing primal cut automation into their Smithfield and Pukeuri works.

No mention is made of the supplier of this equipment but I assume it will be Scott Technology.

http://www.stuff.co.nz/business/farm...ig-in-robotics


Boop boop de do
Marilyn

Good day for Scott Technology on the market today. The share closed up 7.4% at $1.88. But the underlying rise was even better as the offer on close was at $1.93 with no sellers below $2. Based on the unfulfilled closing offer price, the price rise today was 10.3% (the figure I would use). What was the driver of this sudden price action?

From:

http://nzx-prod-s7fsd7f98s.s3-websit...505/332962.pdf

----------


15 October 2020 Company Announcement: SCOTT AWARDED MULTI-MILLION DOLLAR CONTRACT FOR WORLD LEADING MEAT PROCESSING TECHNOLOGY

"Scott Technology Awarded Contract to Design and Build New Zealand’s Most Advanced Lamb Processing System for Alliance Group Automation and robotics solutions provider, Scott Technology Limited (NZX: SCT), is pleased to announce the award of a large contract by Alliance Group to design and build an X-ray lamb boning system for Alliance’s Lorneville plant, located near Invercargill, as the co-operative seeks to improve the operational efficiency of its largest site."

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This is good news because the automated lamb boning room is an automation project that Scott has nailed. This kind of 'repeat business' becomes relatively low risk and high profit margin for Scotts, albeit this is a job for FY2021, not the financial year just ended. What is unusual is the timing of this announcement. Last year the full year result was released on October 24th, only a matter of days away. Traditionally Scott's announce significant new contracts signed on results day. So why has this announcement been brought forwards by nine days? Scott's have been subdued on what is happening at their European arm, which has historically been a very significant part of Scott's turnover and is doubtless very quiet. I wonder if CEO Kippenberger has brought forwards the positive announcement to raise the share price a week before the result so that a cash issue, to pay down debt, can be got away at a good price 'based on the market value of Scott's shares 7 days before the announcement'? I know that sounds cynical. But I have been around the markets for a while! I guess all will be revealed in a few days.

SNOOPY

discl: hold SCT

[Snoopy]

I wonder if CEO Kippenberger has brought forwards the positive announcement to raise the share price a week before the result so that a cash issue, to pay down debt, can be got away at a good price 'based on the market value of Scott's shares 7 days before the announcement'? I know that sounds cynical. But I have been around the markets for a while! I guess all will be revealed in a few days.

SNOOPY

discl: hold SCT

Looks like we are almost a week late announcing the FY2020 financial result, if we go by the results declaration dates from the last couple of years. The second wave Covid-19 lock down in Europe can't be helpful for the formerly named Alvey business (now a Scott's subsidiary) in the short term. Stunned mullet boards on potential customer companies will be more concerned with conserving cash that splashing out on big capital projects. And then of course there is Brexit disrupting things - anyone remember that? A loss for FY2020 is I think a given. But it is the outlook for FY2021 that will drive the share price from here. I am predicting a late in the day Friday release for the market announcement. A dump to digest, that investors will hopefully forget by the opening bell on Monday. Let's see.

SNOOPY

[winner69]

Must have woken them up Snoopy

Plenty of ‘normalisation’ to work on as it looks like a disaster of a year


http://nzx-prod-s7fsd7f98s.s3-websit...274/333890.pdf

[BlackPeter]

Must have woken them up Snoopy

Plenty of ‘normalisation’ to work on as it looks like a disaster of a year


http://nzx-prod-s7fsd7f98s.s3-websit...274/333890.pdf

Jeez - 22.3 cents loss per share ... they could hardly do worse, even if they tried. I suppose the new CEO worked hard to uncover every skeleton - this way it will be hard not to produce better numbers than these come next year.

On the other hand ... long term PE is now 21.3, and this comes with significant negative earnings growth. Clearly a company where one need to believe the story to buy in. Does anybody remember it?

Anyway - great companies see dark times as well ... I remember a time when the SKL share was at 47 cents, and look where it is now. Maybe this is the next SKL? Full steam ahead ...

[BlackPeter]

In May 2020, Scott announced its new ‘Engineering Scott to High Performance 2025’ strategy, which
is focused on positioning Scott as the first choice for customers around the world wanting smart
automation and robotic solutions which make their businesses safer, more productive and more
efficient.

Hmm ... Scott is (on an international scale) a dwarf competing with heavyweights like Stäubli, Rockwell Automation, Yaskawa, Epson, Mayekawa Mfg, Bastian Solutions, Kuka, Kawasaki Robotics, ABB, Fujitsu, Yaskawa, Siemens, and probably some hundred more well known and better placed automation giants. Sure - Scott found sort of a niche for meat processing robots, but - many of the others are as well in food processing - how hard an it be?

Maybe they should start their new journey with a reality check?

[BlackPeter]

... anybody noticed that they classify the just published announcement of their annual results as "Confidential document"

SCottAnn.JPG

It is good practise to review documents before sending them to the market ... maybe they introduce in the future as well a review of NZX publications after they already realised for their strategy 2025 that a bid review might add value ;

Incredible ...

[Snoopy]

... anybody noticed that they classify the just published announcement of their annual results as "Confidential document"

It is good practise to review documents before sending them to the market ... maybe they introduce in the future as well a review of NZX publications after they already realised for their strategy 2025 that a bid review might add value ;

Incredible ...

Received my Annual Report for FY2020 in the mail. It reads all right up to page 48, then jumps back to a repeat of page 33. Once again we count back up to page 48 then it jumps to page 65. So pages 49 to 64 inclusive are missing and that includes all of section C and D! Has anyone else who gets sent a paper copy of the annual report suffered the same lack of reporting fate?

I would put it down to a one off. But as BP has reported, this is now a repeat offence. Add to this the slowness in applying for the wage subsidiary earlier this year, causing some employees to run out of pay completely, and the picture painted here looks unconscionably sloppy.

Could Scott Technology be a candidate for most careless corporate of the year?

SNOOPY

[winner69]

Robots put AR together?