Dunedin company Scott Technology lifted both revenue and profit in the year ended August 31 but kept its dividend unchanged as the company prepares to release a takeover offer to the market.
The company reported a profit before tax of $8.1 million in the period, up 91% on the $4.2 million reported in the previous corresponding period.
Revenue increased 20% to $72.3 million from $60.3 million.
The company ended the period with $1.3 million in cash compared with a deficit of $4.9 million in the pcp.
The final dividend of 5.5 cents per share was unchanged to take the total dividend to 8cps.
Chairman Stuart McLauchlan said the company recorded a strong result in the second half of the year, which included trading results boosted by a more favourable exchange rate in key export markets.
One-off transactions included a $800,000 gain on the sale of the company's Auckland property which housed the Rocklabs manufacturing facility.
The result included a full 12-months contribution from RobotWorks, the North American business, and seven months of trading from the expanded Australian operations.
In December last year, Scott directors indicated a capital-raising would be considered this year, he said.
As part of the capital-raising process, Scott reached out to an affiliated trade businesses that had aligned interests, seeking a cornerstone shareholder to underpin a prospective rights issue.
As a result of those discussions, the company received an offer from JBS Australia Pty Ltd for a majority stake in the company.
In return, JBS offered capital and the opportunity for scale to the business.
JBS proposed a scheme of arrangement which best suited the requirements of both the company and JBS, Mr McLauchlan said.
As of yesterday, the documentation for shareholders was being finalised and was expected to be released to the market and sent to shareholders once the regulatory approvals had been obtained.
It was anticipated that would be within the next two weeks, he said.
Craigs Investment Partners broker Peter McIntyre said the ''all-round good result'' would put the focus back on to the JBS offer.
''The way Scott is trading, some shareholders may think the offer for Scott shares is not high enough.''
JBS was offering to pay $1.39 a share for 10 million shares, to pay $1.39 to any shareholder wanting to sell, a one-for-eight non-renounceable for shareholders who did not want to sell and wanted to take up more shares and a $1.39 payment for additional shares needed to take 50.1% of Scott Technology.
Scott Technology shares were unchanged at $1.38 and have declined 9.8% since the start of the year.
''There is a question mark around whether $1.39 is enough for those shares.''
The company was conscious of its debt and kept its dividend unchanged.
Scott had traditionally carried little or no debt, Mr McIntyre said.
Mr McLauchlan said Scott maintained a strong balance sheet, with total shareholders equity of $50.6 million, an increase of $3.4 million during the course of the year.
Term debt was increased to complete the acquisition of Machinery Automation and Robotics in Australia early this year.
Term debt peaked at $20.9 million but reduced to $17.4 million by balance date, he said.
Chief executive Chris Hopkins said the company had developed and was implementing a strategy to deliver on its growth ambitions.
''Scott continues to invest heavily in research and development to bring new products to existing markets and to develop new technologies for new applications.
''The uptake of our technologies is steadily increasing with the benefit of this commercialisation appearing in the later part of this financial year and will continue into 2016.''
Across the group, it was estimated more than $5 million was spent on research and development, he said.
Where possible, the company continued to seek assistance from customers, industry bodies and the governments of Australia and New Zealand to support the research and development activities.
The expenditure supported not only development of new technology but also research into new markets and new technologies, Mr Hopkins said.
Looking ahead, Mr McLauchlan said the directors were confident the business was well positioned to take advantage of the increasing demand for its skills, technologies and equipment.
''The manufacturing environment in global economies is facing change but it is change that brings demand for our skills and technologies and provides great opportunities to Scott.''
At a glance
• Strong second-half result, boosted by trading from recent acquisitions
• Substantial growth in mining, meat and industrial automation and robotics sectors
• International interest in meat-processing technology resulting in offer from JBS Australia for 50.1% of Scott.
• Final dividend of 5cps unchanged.
