Scott Technology maintains net profit despite market challenges

Scott Technology (NZX:SCT) announced its HY25 results, showcasing stable net profit despite a 14% revenue decrease to $122 million compared to the prior comparable period. The company successfully improved group margins to 29%, a 270bps increase, while operating EBITDA declined by 27% to $12.2 million. Despite the revenue decline due to a challenging economic environment, the company achieved a significant increase in operating cash flow to $14.5 million and reduced net debt by 35% to $13.2 million. Net profit after tax remained stable at $4.3 million. The board declared an interim dividend of 3 cents per share. Forward work remains robust at $165 million. The company is focused on higher-margin opportunities and a new 2030 strategy led by new CEO Mike Christman to be presented at an upcoming investor day.