KEY POINTS:
Cavotec MSL Holdings has reported an 8.7 per cent increase in annual profit to €7.34 million ($13.66 million).
The company was created when Dutch firm Cavotec backed into Canterbury company Mooring Systems in 2006.
Christchurch-based Cavotec MoorMaster develops automated mooring systems within the wider group which describes itself as a supplier of "innovative power supply solutions" across a range of industries.
Cavotec MSL executive chairman Stefan Widegren said that despite volatility in global financial markets and concerns of an economic recession in the US it had seen no indication of a contraction in its markets so far in 2008.
Turnover from continuing operations was expected to increase by more than 10 per cent this year, with higher profitability, even excluding any new acquisitions during the year.
Cavotec reported revenue from ordinary activities for the year to the end of December of €130 million, an increase of 16.9 per cent.
Stripping out Cavotec Gantrex Canada, which was sold last year, group turnover would have amounted to €122.7 million in 2007, Widegren said.
The sale of Cavotec Gantrex Canada would provide a cashflow in 2008 of more than €6 million, and a profit on disposal of some €2.8 million.
"This will provide additional resources to aid us in identifying new acquisition targets, with the goal of bringing at least one more company into the group within 2008."
For Cavotech MoorMaster in Christchurch, 2007 was a year of incubation within the wider Cavotec group, he said.
The company was confident that research and market development efforts last year would generate a meaningful contribution to Cavotec MSL's near-term results.
Chief executive Ottonel Popesco said revenues from the mooring operations had been "very low" last year, not more than €200,000, although an order for €500,000 had also been registered but not delivered during the year.
Revenue in 2008 was expected to be much higher after €1.3 million was spent on mooring development in 2007, but he did not want to give any figures.
"It was a year of preparation, and this is why we are very confident that now for the new systems we have developed we will very soon get some new orders," he said.
A dividend of 4c per share is to be paid, after no payment for 2006.
Widegren said Cavotec MSL's effective tax rate had increased from 26 per cent to 38 per cent.
Changes in Chinese tax legislation had contributed to that increase .
Cavotec shares closed up 5c at $4, having ranged between $5.45 and $3.90 in the past year.
- NZPA
