Robotics company Scott Technology said improved revenue across the mining and the meat sectors had helped it return to profitability in the half-year to February 2021.
The Dunedin-based company’s net profit after tax was $4.7 million, up from a previous loss of $13.7m. Revenue was $104.5m, up from $99m for the comparable six months.
Australasian revenues increased to $51.1m from $33.7m while the company achieved pre-tax earnings, interest and depreciation of $5.8m, up from $1.1m year-on-year.
Scott China also experienced strong growth with revenues of $6.1m, up from $2.2m for the comparable period.
Chief executive John Kippenberger said strong precious metal prices were underpinning continued investment in global mining capacity in Australia, Russia, North America and West Africa. This would support demand for the firm’s mining parts business, exporting to the global mining sector from its factory in Auckland.
Due to the impact of Covid, the company last year was forced to cut about 150 jobs, or about 20 percent of its global workforce.
Scott Technology shares closed up 5.3 percent at $2.20
Geoff Ross set to resign as chair of Savor Group
High profile director and former 42 Below founder Geoff Ross will stand down from the board of Savor (formerly known as Moa Group) in May following the release of the company’s financials.
The company has undergone a change of direction in the past six months after selling off its beer interests and turning itself into the operator of several restaurant brands. A new chair has not yet been appointed.
Savor confirmed it had finalised a $6m capital raise to fund the acquisition of several Hip Group restaurant brands, including Amano.
Also resigning from Savor’s board are David Poole, Sheena Henderson and Rich Frank.
Two independent directors – GreenMount Advisory’s Ryan Davis and HR specialist Louise Alexander – will join the board.
Savor announced in March it would pay $11m for Amano, Ortolana and the Store from Hip Group.
Savor shares closed up 9.7 percent at 22c, though they have halved in value since 2019.
Proposed US corporate tax rise finds support from unlikely backer
While most corporate CEOs are usually not fans of tax increases, the head of one of America’s largest companies is backing such a plan.
Amazon founder Jeff Bezos said in a statement Tuesday (US time) the company is “supportive of a rise in the corporate tax rate.”
“We support the Biden Administration’s focus on making bold investments in American infrastructure,” Bezos said.
“Both Democrats and Republicans have supported infrastructure in the past, and it’s the right time to work together to make this happen. We recognise this investment will require concessions from all sides — both on the specifics of what’s included as well as how it gets paid for.”
The White House is laying the groundwork for lifting the corporate tax rate above its current level of 21 percent to help pay for an ambitious infrastructure package. If it succeeds in passing the plan, it will be the first time company taxes have increased in the US in almost 25 years.
Bezos’ statement is a notable show of approval for the move given that many others in the business community have warned such a decision could threaten recovery from the pandemic.
Bitcoin mining a growing environmental threat in China
News this week that China could end up exceeding its emissions reduction targets as a result of carbon-intensive bitcoin mining, according to a new study, will only fuel environmentalists concerns about the long term sustainability of the popular cryptocurrency.
Almost 75 percent of the world’s bitcoin mining is done in China, where there is cheap electricity and relatively easy access to manufacturers who make specialised hardware, according to the study. As a result, the nation’s bitcoin carbon footprint is as big as one of its ten largest cities, the study found.
Unlike most forms of currency — issued by a single entity like a central bank — bitcoin is based on a decentralised network and needs to be “mined.”
This takes place when bitcoin transactions, recorded on a public ledger called the blockchain, are “verified” by miners. These miners run purpose-built computers to solve complex mathematical puzzles that effectively allow a bitcoin transaction to happen; the miners then receive bitcoin as a reward.
This mining on computers uses vast amounts of electricity, especially when conducted on a large scale.
Worldwide, bitcoin mining consumes an estimated 128.84 terrawatt-hour (Twh) per year of energy — more than entire countries such as Ukraine and Argentina, according to the Cambridge Bitcoin Electricity Consumption Index, a project of the University of Cambridge.
US Dollar defies predictions as it continues to strengthen
The US dollar has continued to strengthen in the opening months of this year proving many analysts wrong in their forecasts of a decline in the greenback.
The dollar index, which tracks its value against six other major currencies, jumped 3.6 per cent in the first quarter, its best run since 2018 and a sharp turnaround from the 6.8 per cent slide last year. It has since pulled back around 1 per cent.
The still robust year-to-date gains have confounded analysts, whose expectation for a strong global recovery to pull the world’s reserve currency 3 per cent lower this year was one of the strongest consensus calls for 2021.
Instead, signs that the US will outperform other major economies have pushed it higher.
Some of the first-quarter gains for the dollar were particularly striking. It climbed 7.2 per cent against the Japanese yen, which clocked up its worst month in nearly five years in March. The same month brought the euro’s biggest drop against the dollar in three years while the Chinese renminbi’s decline was the biggest since March 2020.
What comes next for the US dollar will depend in large part on whether the Federal Reserve responds to the more aggressive inflation outlook. Last month, policymakers signalled they expected short-term interest rates will be kept at near zero until at least 2024.
