KEY POINTS:
The New Zealand division of Cavotec MSL Holdings may have contributed little to the latest full-year result but its market potential is worth billions, says the company.
Cavotec MSL was formed last month with the merger of Christchurch's Mooring Systems - whose products use a vacuum to moor ships rather than ropes - with Netherlands-based Cavotec. The merged company is listed on the NZX and based in Christchurch.
Net profit at Cavotec MSL surged in the year ending December 31 to $12.7 million up from $6.7 million and revenue was $215.8 million up from $160.2 million.
The New Zealand MoorMaster products contributed about $3.46 million to revenue but John Polatz, director of corporate finance and investor relations, said strong sales were expected in the next couple of years.
A kilometre of quayside could take about €2 million ($3.8 million) to €3 million worth of MoorMaster technology, with the top 100 ports in the world comprising about 500 kms, Polatz said. "And I'm just talking about industrial container ports ... you're talking a multi-billion dollar market," he said. "The opportunity is as big as we want it to be I guess."
However, the growth of a relatively expensive technology would depend on how fast the market was educated. But word was spreading, Polatz said.
"It won't happen overnight. We obviously believe in it else we wouldn't have taken our company from Europe to New Zealand," he said.
The vacuum mooring technology would benefit from a global sales, maintenance and distribution network built by Cavotec, with more than 25 offices.
Vigorous demand was expected in all core markets this year driving revenue growth of about 10 per cent.
The jump in revenue and profit last year reflected in part the successful integrating of three technology companies purchased between 2001 and 2004 - making high-end industrial radio remote controls, products for cranes in shipping operations and aircraft servicing technology for power, communications and waste water.
Polatz said: "We basically took their niche products and globalised them overnight with our sales force."
MoorMaster's technology maybe the next in line, but it was unlikely to be the last.
Polatz said: "I would think it's safe to say we are now considering looking at making some more acquisitions but the estimates we're giving out so far are only for organic growth."
Cavotec MSL shares closed down 2c yesterday at $5.15.
The outstanding order book as at December 31 was €33.7 million, up from €23.1 million the previous year.
Executive chairman Stefan Widegren said he was excited to be leading such a dynamic and widespread international business and the merger would enable new opportunities to be explored. "The New Zealand financial community is extremely positive and receptive to CCC, and we all feel committed and very much at home in the New Zealand marketplace."
