Scott Tech’s ownership structure up for review

Scott Technology's systems are used extensively in meat processing. Photo / Supplied

Robotics specialist Scott Technology, 53.05 per cent-owned by Brazil’s JBS, says it has hired Macquarie Capital to undertake a strategic review of its ownership structure.

As part of the review progresses, Scott said it was committed to keep growing under its “Scott 2025″ strategy of streamlining the business.

The review is expected to take several months, and there is no certainty that any transaction will result, Scott said.

“No decisions will be made regarding any potential transaction or other outcome until the completion of the process,” the company said.

JBS is the world’s biggest meat processor.

Dunedin-based Scott has designed and built operations across New Zealand, Australia, China, Europe and America.

The company’s shares last traded at $2.75, having eased by 2.5 per cent over the last 12 months.

In a market update issued last month, the company said its momentum continued in the third quarter following a strong first half.

“The company continues to build a solid pipeline of new contracts as global demand for automation continues to accelerate in response to labour challenges,” it said.

In its update, chief executive John Kippenberger said Scott continued to build relationships within its core sectors of materials handling, meat processing and mining, “and we are seeing this pay off in continued positive trading across the business”.

The company’s result for the first half to February 28 showed revenue from continuing operations was up 11 per cent to $127m while margins grew from 22 per cent to 26 per cent.

Earnings before interest, tax, depreciation and amortisation increased by 20 per cent to $15m while Scott’s net profit after tax (from continuing operations) was up 66 per cent to $8m.

Jamie Gray is an Auckland-based journalist, covering the financial markets and the primary sector. He joined the Herald in 2011.