Scott Technology (SCT) H2 2024 earnings summary

Executive summary

• Revenue reached $276m, up 3% year-over-year, with stable margins at 27% and operating EBITDA of $30.2m, despite challenging macroeconomic conditions and sectoral shifts.

• Net profit after tax declined 50% to $7.7m due to one-off strategic review and restructuring costs, higher lease and financing expenses, and tax legislation changes.

• Core sectors (MHL, minerals, protein) contributed 85% of group revenue, up from 79% last year, with strong growth in MHL and minerals offset by softness in protein.

• Forward work remains robust at $160m, supporting future revenue streams and underpins confidence in future revenue.

• Full year dividend maintained at 8.0 cents per share.

Financial highlights

• FY24 revenue was $276.1m, up 3% from $267.5m in FY23; operating EBITDA was $30.2m, nearly flat year-over-year.

• Net profit after tax fell to $7.7m from $15.4m in FY23, impacted by $3.8m in one-off strategic review and restructuring costs, higher depreciation/amortisation (+$2.5m), increased financing costs (+$1.7m), and tax changes (+$0.8m).

• Underlying EPS was 14.3 cents, down from 20.3 cents in FY23; total full-year dividends maintained at 8.0 cents per share.

• Net debt increased to $20.1m from $0.1m in FY23, reflecting investment in infrastructure, facility expansion, and timing of cash flows.

• Operating cash flow was $6.0m, down from $20.2m in FY23, with H2 FY24 cash flow improving to $13.7m.

Outlook and guidance

• Strategy extended through 2027, focusing on scalable, repeatable solutions, global partnerships, and market expansion, especially in North America.

• Positive sales pipeline with $160m in forward work, including significant orders in MHL, minerals, and protein.

• Continued investment in product innovation, facilities, and service business expected to drive future growth.