By ELLEN READ
A strong order book has helped Scott Technology post a better than expected interim profit of $2.5 million for the six months to February 28.
The company - one of the best performers on the stock exchange last year - declared an interim dividend of 6c a share, double the level of the previous corresponding dividend.
Revenue for the six months increased to $23.35 million from a previous $10.06 million.
"It really reflects a big increase in our throughput," chief executive Kevin Kilpatrick said.
The addition of night operation at the company's Christchurch and Dunedin plants had also added to efficiency.
Forsyth Barr head of research Rob Mercer said the result exceeded expectations and continued the momentum begun in the second half of the previous financial year.
"That's to be expected, they've got a very strong order book," Mercer said. His full-year forecast for the company has been raised $700,000 to $4.4 million - a level he is also forecasting for the company's 2004 fiscal year.
"The real test for them now is to convert their level of inquiries into orders."
Scott's core business is producing assembly lines for appliance manufacturers, mostly overseas. Clients include industry giants such as General Electric, Electrolux, Frigidaire and Whirlpool and it also exports to South America, Asia and Europe.
Kilpatrick said the company's joint venture with PPCS - a system for boning lamb hindquarters - is undergoing testing and development.
He said the strengthening of the company's international marketing operations continued during the six-month period, with increased commitment to its office in Dallas and the opening of one in Shanghai.
The purchase of the company's Auckland property was completed and plans were being finalised for its expansion.
The company also announced it had just signed a $2 million contract to upgrade an existing line in the United States.
Kilpatrick was reluctant to forecast a full-year figure but said there was no reason to expect the second half to "differ substantially from the first half".
The impact of the Iraq war was difficult to read but it was unlikely to have any adverse effect on current inquiries.
Strong exchange performer Scott goes from strength to strength
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