SCT - Scott Tech

[Marilyn Munroe]

Scott Technology gets a mention on anti-establishment and contrarian financial web site Zerohedge.

https://www.zerohedge.com/technology...cessing-crisis

Boop boop de do
Marilyn

[sb9]

Scott Technology gets a mention on anti-establishment and contrarian financial web site Zerohedge.

https://www.zerohedge.com/technology...cessing-crisis

Boop boop de do
Marilyn

Nice find, thanks for the link MM

[Timesurfer]

Looks like the person who loaded up the sell side has aquired enough now.

[sb9]

https://www.nzx.com/announcements/352817

The new Director has got some great credentials..

The Board is pleased to announce the appointment of Alan Byers as a Director, effective from 8 May 2020.
Alan was most recently the President of US Regional Beef, retiring from that position after 43 years in the industry. Alan is now serving as a Senior Advisor to Andre Nogueira and the collective JBS US business.
Prior to joining JBS USA, Alan held a number of senior executive roles, including CEO / President of Meyer Natural Foods, President of ConAgra Signature Meats, and 18 years with Hormel culminating in an assignment as President of Dubuque Foods.
Alan’s career experience has included positions as Plant Personnel Manager, Corporate Labour Relations Manager, Industrial Engineering Manager, Corporate Operations Manager, Plant Manager, Product Marketing Director, and Executive Vice President of Sales.
Alan is a Drake University graduate with a degree in Industrial Communication. He also holds an MBA from Kellog School of Business/Northwestern.

[emveha]

SP jumps nearly 10% on news of Nogueira's resignation... that's got to hurt.

[winner69]

SCT seems to have so much going for them (industry leaders etc) but their financials are never that flash

Business model no good or something else?

http://nzx-prod-s7fsd7f98s.s3-websit...874/322180.pdf

[Snoopy]

SCT seems to have so much going for them (industry leaders etc) but their financials are never that flash

Business model no good or something else?

http://nzx-prod-s7fsd7f98s.s3-websit...874/322180.pdf

No dividend, but no mention of the immediate need for a capital raising either. Net debt is $20.2m. It will be interesting servicing that on a negative normalised EBITDA income. Those poor workers in Germany. Rescued from receivership but then had their work transferred to the Czech republic and now they are sacked.

As always these announcements are best read through what is not said. Very little mention about Europe from an operational perspective. Acquisition Alvey probably still in trouble with Europe locked down and Brexit. SCT's normalised net profit after tax was just +$0.8m. Yet further up the income statement normalised EBITDA was a loss of $0.4m! I can't fathom how an EBITDA loss can turn into an NPAT profit. Perhaps someone who has some serious accounting training can explain.

Meanwhile:

"The challenging projects in Australia and New Zealand, as previously discussed, are now either completed or nearing completion and the financial impact of these has been realised in 1H20."

These is a $10.4m impairment hit noted. I wonder if this is in relation to these 'projects gone wrong' or something else? Maybe now HTS-110 is on the block, an impairment his has been taken there? I suspect we will have to wait for a sale for that loss to be realised though!

Maybe this is the local bottom for the share price going forwards? There is no mention of the outlook for Australia and NZ for the future. Emphasising 'Bladestop' sales is another way of saying that full automation of the beef processing lines (the true golden goose in the SCT product portfolio) is not yet viable. Only big project on the horizon is the pre-announced Rio Tinto sample processing automation centre, but even that is delayed. I am going to make a bold prediction. No full year dividend for FY2020 either.

SNOOPY

[BlackPeter]

SCT seems to have so much going for them (industry leaders etc) but their financials are never that flash

Business model no good or something else?

http://nzx-prod-s7fsd7f98s.s3-websit...874/322180.pdf

Well, I take it the majority share holder (JBS) is quite happy with board and strategy, otherwise they could change it anytime. I suppose either they follow a cunning long term strategy or they have a different agenda to the mum and dad investors who just want the money.

[Balance]

Well, I take it the majority share holder (JBS) is quite happy with board and strategy, otherwise they could change it anytime. I suppose either they follow a cunning long term strategy or they have a different agenda to the mum and dad investors who just want the money.

Always the problem when there is a majority shareholder with a different agenda to that of minorities.

Why it is so critical to be aware of what their agenda is.

[forest]

SCT seems to have so much going for them (industry leaders etc) but their financials are never that flash

Business model no good or something else?

http://nzx-prod-s7fsd7f98s.s3-websit...874/322180.pdf

Scott themself seem to think model needs to change.

Part of todays SCT announcement.

The past five years has been a period of rapid acquisition growth for the company, resulting in a diverse reach across sectors, customers and geographies. With a new leadership team in place and given the changing operating environment, Scott is now moving to streamline its business and will focus on leveraging core strengths and expertise which offer profitable sustainable growth and margins.
The company’s new strategy will build on five pillars – Customer Partnerships, Leading Edge Technology, One Global Team, Operational Excellence and a Robust Global Platform. In particular, Scott will be increasing its focus on repeat, profitable sales of developed and proven technology, products and services which are core to the Scott Group; and increasing its service and support offering for customers. New project design & development will be carefully risk assessed and R&D activities will become highly focused on core technologies, with additional, carefully targeted strategic projects aimed at delivering positive commercial growth opportunities.