SCT - Scott Tech

[percy]

The capital raising must have been the prime consideration of who ever wrote the flowery commentary;
Surplus increase 40%
EPS up 92%
Revenue up 16%
Dividend,,Directors' confidence in the strategic direction of the company.
Strong operating cash inflow $4mil.Significant turnaround..
All great troop rallying words...
Yet as Under Surveillance points out it is on a terrible performance last year.
NTA has reduced from 71.7 cents ps to 30.8 cents ps.
Intangibles assets [? ] have increased from $186,000 to $12,131,000. !!!! A lot of very valuable intangibles???
Goodwill has nearly doubled going from $10,813,000 to $20,081,000.
Take Intangibles and Goodwill off the equity of $48,078,000 and the reasons for the capital raising become very clear.

[benjitara]

The capital raising must have been the prime consideration of who ever wrote the flowery commentary;
Surplus increase 40%
EPS up 92%
Revenue up 16%
Dividend,,Directors' confidence in the strategic direction of the company.
Strong operating cash inflow $4mil.Significant turnaround..
All great troop rallying words...
Yet as Under Surveillance points out it is on a terrible performance last year.
NTA has reduced from 71.7 cents ps to 30.8 cents ps.
Intangibles assets [? ] have increased from $186,000 to $12,131,000. !!!! A lot of very valuable intangibles???
Goodwill has nearly doubled going from $10,813,000 to $20,081,000.
Take Intangibles and Goodwill off the equity of $48,078,000 and the reasons for the capital raising become very clear.

Yes an interesting report... We'll be brave in acquiring a number of businesses that open up markets but then we'll ask you to dilute your returns by paying off the funds we used to pay for them. .. 15-20% over-valued SP in my book but an interesting company to have alook at in times to come maybe?

[percy]

Yes an interesting report... We'll be brave in acquiring a number of businesses that open up markets but then we'll ask you to dilute your returns by paying off the funds we used to pay for them. .. 15-20% over-valued SP in my book but an interesting company to have alook at in times to come maybe?

Yes an interesting company.
Maybe they would be better off being based and listed in the US.
Trying to run an international company from NZ appears to be an uphill battle.

[GTM 3442]

. . . an interesting company to have alook at in times to come maybe?

Scott have always been a good reminder that "technology" isn't necessarily something that revolves around apps for iPhones.

I look forward to discovering that future purchases of consumer durables were "made by something that was made in New Zealand"

[Snoopy]

Surplus increase 40%

The dollar figures:
$1.462m (HY2015) up from $1.085m (HY2014)

EPS up 92%

Number of SCT shares on issue when HY2015 result was announced: 45,195,317

eps = $1.146m/ 45.195m = 2.54cps

(figure no longer different to the 2.5cps quoted in the half yearly results).

Trying to trace the number of SCT shares on issue at a particular time is a bit of an exercise, because shares on issue notices are filed in a format that disappears into the ether.

That 45,195,317 shares includes 704,952 shares from the MAR acquisition. Before that time 44,490,365 shares existed.

AR2014 says 44,009,178 existed at balance date.

So:

44,490,365 - 44,009,178 = 481,187 shares must have been created as part of the DRP from the final dividend, with those shares issued in December 2014.

Go back to 14th May 2014 and 646,301 new shares were issued with Scott's acquisition of 'Robotworx'.

So number of shares on issue before that was:

44,009,178 - 646,301 = 43,362,877

For the six months ended 28th February 2014, the interim dividend payment resulted in $807,000 worth of new shares being issued on 8th May 2014. The strike price was $1.461. So total number of shares issued as a result of the 2014 interim dividend was.

$807,000 / $1.4161 = 569,875

That means the total number of shares on issue just before the HY2014 interim dividend was declared was:

43,362,877 - 569,875 = 42,793,002

So the eps for HY2014 (the comparative period) was:

$820,000/ 42,793,002 = 1.91cps

Lots of numbers here, probably too many for most readers. But SCT has had a habit in recent years of issuing a lot of new shares. I think it is really important to keep a good handle on the number of shares out there. Indeed an imminent cash issue will see many more new shares come into existence soon. What will happen to 'eps' growth then? SCT has a good record of profit growth over several years. But the growth in earnings per share has been far less impressive. And it is the eps growth figure that is of far more interest to we shareholders.

SNOOPY

[winner69]

The dollar figures:
$1.462m (HY2015) up from $1.085m (HY2014)



Number of SCT shares on issue when HY2015 result was announced: 45,195,317

eps = $1.462m/ 45.195m = 3.2cps

Not sure why that figure is greater than the 2.5cps quoted in the half yearly results.

That includes 704,952 shares from the MAR acquisition. Before that time 44,490,365 shares existed.

AR2014 says 44,009,178 existed at balance date. So:

44,490,365 - 44,009,178 = 481,187 shares must have been created as part of the DRP from the final dividend, with those shares issued in December 2014

SNOOPY

Net Surplus was $1.146m. The EPS calculated from this.

What then was last years EPS calculated on .....did they have heaps more shares or something to make sense of 1.3 cents. Sort of implies 60m plus shares back then. Do you know Snoops?

[winner69]

Snoops, I been replying to your pre-edited post but never mind

I understand the 2.5 cents for this half year but last years 1.3cents has me stuffed

Let me know how last years number was calculated if you can find out.

[winner69]

Snoops, you reckon last years number is wrong? Surely not

[winner69]

Snoops, I have sussed it

The EPS is based on 'Net Surplus attributable to Members of the parent entity' line in the Income statement divided by the Weighted Average Number of shares

The 1.3 cents last year was based on a Net Surplus of $0.541m / this year $1.062M

Non-controlled interests are not included

Got that - easy peasy eh

But no doubt you will just use the reported bottom line (better not to use the Comprehensive Income line, just the Net Surplus line) and period end number of shares

[percy]

Would you have found it easier to understand had it been written in Maori.?
Utu.!