KEY POINTS:
Shares in Scott Technology jumped 9 per cent despite a half-year loss due to the effects of the credit crisis on offshore contracts.
The Dunedin-based technology company made a loss of $836,000 for the six months to February, compared with a profit of $1.2 million over the same period last year.
Group sales for the six months were well down at $8.3 million, compared to $14.3 million a year ago.
There was no interim dividend but the directors hoped to resume them when the company returned to target profit levels.
Scott said its principal challenges were the New Zealand dollar, high domestic interest rates and the global liquidity crisis.
"The global economic situation has seen many prospective overseas purchasers deferring new capital projects and this has affected the level of sales for both the appliances and automotive divisions," chairman Stuart McLauchlan said.
But the company had also received a record number of inquiries and provided a record number of quotes during the period, some to industries and countries that had not traditionally been customers.
"This is very encouraging for medium to long term forward work," McLauchlan said.
The company was also weighing up a number of potential acquisitions and joint ventures. It was in the process of doing due diligence on an automation company and hoped to make an announcement within the next two months. Despite the difficult economic conditions, it remained strong financially, with excellent prospects for the medium to short term.
Shares in Scott Technology rose 13c to $1.48, compared to a year low of $1.16 in March.
- NZPA
