Are you referring to pg.44 of the annual report?
$26,939 is the profit. twenty six thousand (not million)
Immaterial I think.
Still, looking forward to see how the automated milking is going.
Printable View
Ah, thanks Noodles. I get so used to thinking in millions, that a figure in the mere thousands did not register as that! Still, any start up venture that registers a profit straight away has made a good start in my view. I am looking forward to better and brighter things from the SCT association with XRF.
SNOOPY
Poor result.
EPS down 18.5% to 13.6 cents from 16.7cents.
Nett surplus well down after paying 23.67% less tax.
Major concern is the negative cash flow from operating activities of-$1,933,000.
I have to respectfully disagree with Under Surveillence about the right comparisons being made. Last year the profit figure contained a one off $0.846m foreign exchange rate gain. This year it contained two small foreign exchange rate losses. So the real year on year comparison is $5.501m (FY201) verses $5.384m (FY2013). The number of shares on issue have changed as well. So the normalized eps comparison is by may calculations 13.5cps (FY2012) vs 12.8cps (FY2013). That is a decline of just over 5%., not 18.5%. Not good, but actually better than I expected.
You should also understand that SCT sell capital intensive projects. Variations of cashflow like Percy has highlighted are part of normal business and nothing to be concerned about when you have no term debt.
SNOOPY
Nicely pointed out Snoopy.
However, I feel the valuation is currently too high given it is just a project driven engineering company. I'd expect a pe of around 10-12. Perhaps the negative cashflow's means they will have a good year next year, but they have given no strong indication that this is the case.
For a 'project driven engineering company' I would agree with you Noodles. A PE of 10-12 sounds about right. However, Scott Technology have a lot of intellectual property. The most highly developed being the meat industry robotics which effectively you are getting for free. Granted it hardly generates a profit at the moment. But one day I feel the full value will be recognized. I think of SCT as a project engineering company with some free lotto tickets thrown in. For that I am prepared to pay a (small) premium.
SNOOPY