December 1, 2025 • 20 mins
We’re at Rocklabs with Mike Christman, CEO of Scott Technology — the 112-year-old Kiwi engineering company that specialises in the design and manufacture of automated production and robotics.
Mike explains how the company is transforming mining, protein processing, logistics, and appliance manufacturing by replacing manual tasks with AI-driven, automated systems.
He shares why margins are improving, what’s behind the company’s “Destination 2030” plan,and why the biggest barrier to automation isn’t competitors — it’s customer mindset.
Plus, Mike’s personal journey from London to New Zealand, and plans for the company to become far more visible to investors.
For more or to watch on YouTube—check out http://linktr.ee/sharedlunch
Recorded on 22nd October 2025 - All commentary reflects the timing of the original conversation.
Shared Lunch is brought to you by Sharesies Australia Limited (ABN 94 648 811 830; AFSL 529893) in Australia and Sharesies Limited (NZ) in New Zealand. It is not financial advice. Information provided is general only and current at the time it’s provided, and does not take into account your objectives, financial situation and needs. We do not provide recommendations and you should always read the disclosure documents available from the product issuer before making a financial decision. Our disclosure documents and terms and conditions—including a Target Market Determination and IDPS Guide for Sharesies Australian customers—can be found on our relevant Australian or NZ website.
Investing involves risk. You might lose the money you start with. If you require financial advice, you should consider speaking with a qualified financial advisor. Past performance is not a guarantee of future performance.
Appearance on Shared Lunch is not an endorsement by Sharesies of the views of the presenters, guests, or the entities they represent. Their views are their own.
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:04):
Welcome to Shared Lunch. I'm Luke Smith of Shares's and
today we're talking to Mike Chrisman CEO of Scott Technology,
a one hundred and twelve year old ki we automation
success story. Scott has evolved from humble engineering roots into
a global leader in automation or robotics across protein materials, handling, appliance,
manufacturing and mining. Today we're here at rock Clabs, it's
(00:28):
mining automation site. Before we get started, here's some important information.
Speaker 2 (00:33):
Investing involves the risk you might lose the money you
start with. We recommend talking to a licensed financial advisor.
We also recommend reading product disclosure documents before deciding to invest.
Everything you're about to see and here is current at
the time of recording.
Speaker 1 (00:48):
Well, Mike, thanks for hosting us today.
Speaker 3 (00:49):
You're very welcome. Welcome to Rock Clubs.
Speaker 1 (00:51):
There's a bit going on here and it's a big site.
Tell us what is rock Clabs and what do you
do here? So?
Speaker 3 (00:57):
Rock Clubs is our center of excellence for the mining industry.
This is where we design, build and manufacture solutions and
equipment for the mining industry globally.
Speaker 1 (01:07):
Stiffing back around, Scott Technology. You were founded in nineteen thirteen,
humble routes, I believe and motor appears and now the
successful automation company. Who is Scott Technology? And can you
tell us about that story?
Speaker 3 (01:21):
So Scott Technology founded, as you say, back in the
early nineteen hundreds, Yeah, motor repairs originally. As the years
have gone on, we've moved more into automation and automation products.
And who is Scott Technology? Well, we're an automation company
that effectively provides solutions for our customers that move manual
processes into fully automated processes. We manufacture things from robotics
(01:45):
right the way through to the AMS systems that you
see behind us, so effectively we bring value to our customers.
Speaker 1 (01:52):
So what is the difference between robotics and automation and
what are some examples of how you do that here
at Scott Technology.
Speaker 3 (01:58):
Okay, so you're asked in the question for the gigs
amongst us, So that's a difference between the two. So
automation is where we move something from point one to
point two with dumb conveyors. The robotic side of thing
is far more complicated. That's where we have AI learning.
So if I take an example of a beef processing
or a lamb processing system. We will have an AI
(02:22):
vision camera with an X ray vision technology, actually look
at an animal carcass, work out where the bones are,
where the muscle is, and the robotic system will then
cut that carcass in certain angles and different directions, and
it's unique to every single carcass that goes through the system.
So robotics is sorry, automations just moving from A to B.
(02:42):
Robotics is almost a bespoke action for each and every
single action.
Speaker 1 (02:46):
Yeah, that's fascinating. Are there any other examples of that
type of robotics.
Speaker 3 (02:51):
Yeah, So if I take automated guided vehicles as an example,
and actually one of our new technologies called next spot.
So historically forklifts are just a fork lift that somebody
will drive it will pick something up. On our new technology,
we have a fork lift that's fully automated, no driver.
It will pick something up, move it. But then the
system will detach itself from the forks and the back end,
(03:14):
change the front end for a different set of forks
or a different lifting mechanism, go to a different area,
pick something up on a different weight, and then it
will just keep changing the front and the back end
of the system as it seems fit to deliver the solution.
Speaker 1 (03:27):
Possibly slightly cheeky, Christion, but some of the sounds expensive.
Do you mind me asking what sort of range could
some of these products cost to clients?
Speaker 3 (03:36):
Well, I think when you look at the value it
brings to a customer, obviously from our point of view,
we need to make sure that it does bring value
and it does fit in the business case. But you know,
some of these technologies can range from tens of thousands
to hundreds of thousands into millions of dollars, so a
broad spectrum.
Speaker 1 (03:50):
And what is special about Scott and then your DNA
that's allowed you to last across quite a long period
of time doing some quite cool things.
Speaker 3 (03:58):
Well, I think, actually this is a really good question
to ask me, to be honest, because I've only been
here a year. So what I feel in the DNA
is it's such an innovative engineering company with some great
people really focused on bringing value, very much on the
engineering side, and I think if that element of our
DNA has been there since concept, actually that's why we're
still here, that's while we're thriving, and that's why we
(04:20):
continue to throw.
Speaker 1 (04:21):
So talking about your product lines, can you give us
an overview of what it does you do and the
types of problems that you're solving for customers.
Speaker 3 (04:29):
Sure, so if you look at what Scott actually does,
we break it down into four categories, so four clear domains,
so material handling, logistics, protein appliances, and as you say
here mining and we effectively what we do is we
take away those manual processes, so we improve performance, we
improve safety, we bring value to our customer. That's what
we're really here to do.
Speaker 1 (04:51):
What are some examples of customers and a couple of
those product lines and some things that Scott is doing
that's really improving their operations.
Speaker 3 (05:00):
If you take the mining system that we have behind
us here. So historically, when a mining company goes to
a new site, they dig, they test, and they have
to crush the rocks. They have then pulverize them, they
have to do all this special testing on it. And effectively,
what we can do here is they extract the rocks,
but we take it through that entire process that used
to be manual, time consuming in hot industry, hot areas,
(05:23):
and we fully automate that process. So we give them
the results with little to know manual input. So there's
a bed on across the four product lines. How do
you structure.
Speaker 1 (05:32):
Yourselves to manage quite distinct offerings.
Speaker 3 (05:36):
I think it's a really good question. I think first
and foremost, what we have to make sure is that
we think about Scott in the enterprise level, so the
whole company. Yes, we have four distinct areas and an
exec member that manages each of those areas, but really
for us, it's around moving that silo way of thinking
into the enterprise way of thinking and actually using technologies
(05:57):
from each of those domains in the other domains. So
a good example would be protein, where we process livestock
and we use material handling and logistics solutions in that
same environment, so we can cross pollinate our technology between
different sectors. So it enables us to think about the
enterprise rather than just the silo or.
Speaker 1 (06:16):
The audience to ground what it does you're doing. Who
would you describe as the key competitors that are no
one out there to what you're doing?
Speaker 3 (06:22):
Well, I think it's a good question. Again an interesting answer.
I'll spin it around a little bit that actually I
think the key competitor is ourselves and actually is our
customers and their ability to think automate rather than manual process.
So I think that's our biggest competition, to be honest,
our own customers that want to move from manual to automation.
(06:43):
Of course, we have competitors out there in forms of
other companies, but you know there's lots in the material
handling world, a fairly limited amount in both protein and mining,
but nonetheless they're there. But for us, the competitive advantage
is really bringing that value across the whole life cycle.
Speaker 1 (07:00):
Yeah right, So really reframing that airs working smarter, not harder,
and thinking about how to do things in a.
Speaker 3 (07:08):
You know, we don't just want to sell a product
to a customer. You know, we're there to give them
a solution, a solution right from concept right the way
through the full life cycle of the product. You know,
that's I think the key differentiator for us here.
Speaker 1 (07:20):
So to appreciate the scale of Scott Technology, what are
the markets you're operating in globally?
Speaker 3 (07:25):
So we operate in the material handling logistics market that's global.
So North America and Europe is our biggest presence. Protein,
so New Zealand and Australia is the biggest presence of
protein at the moment with a very very fast and
growing North America market, mining predominantly Australia, South Africa. And
then appliance is generally a global product but manufactured out
(07:48):
of our China, China central of excellence.
Speaker 1 (07:51):
Right and revenue. As we're recording us on the twenty second,
you've just released your yesterday full year results yesterday two
hundred and seven million dollars.
Speaker 3 (08:00):
And five million dollars.
Speaker 1 (08:01):
Yet looks flat year on year, but it looks like
there might be a story of two halves there, and
what are the key highlights for you and those results?
Speaker 3 (08:09):
I think the key highlights for me really if you
look back at the first half of financial year twenty five,
we were, you know, way behind budget. You know, we've
started to implement our strategy, so that really is starting
to show dividend and actually we we achieved you know,
the full amount for the year, so we actually you know,
got back to a flat line position. But it's not
(08:30):
just about that. We've increased our profitability. Our net profit
after tax has gone up and our gross margin's gone up.
So yeah, you're right, we're seeing a story of two
halves and actually the latter half of last year really
started to deliver on our twenty thirty strategy.
Speaker 1 (08:44):
And what's driving that operational and margin improvements on the business.
Speaker 3 (08:48):
So you'll see from the strategy we've got this pillar
called one scot so we're unifying some of our systems
around the world. At the moment, we've got multiple systems
for HR, for I for finance, and we're really bringing
those single systems together, so we've got one system rather
than the seven or eight. So there's efficiencies there, there's
(09:09):
focus on delivery, and there's you know, really looking towards
how we how we deliver projects and products, and we're
far more focused on that efficient delivery. So I think
it's a culmination of things, but I kind of come
back to focus is probably the big driver here.
Speaker 1 (09:24):
So I want to shift to you personally, Mike to
recently join the hot seat as CEO in twenty twenty four,
and you had a senior global executive role at the
Dutch logistics automation company vanderaland as Axis. Vandalander got that right,
so keen to understand the story of moving from the
(09:44):
UK to New zealand joining a smaller company like Scott Technology.
What did you see and it has made you say
this is worth moving for?
Speaker 3 (09:53):
Okay, well, first of all, it's it's an absolute privilege
to be here and to be able to lead Scott. Yeah,
working for a large organization, as you can imagine, you know,
sometimes doesn't bring the rewards that you want. It's hard
to make change and really, you know, you use afraid
smaller company, But actually I would spin that around and
say it's a bigger company for opportunity. So this is
(10:17):
it's a blank canvas here. So I absolutely see and
saw the opportunity of growth. I saw the opportunity to
implement some of the things I've done before in terms
of customer The talent here is just phenomenal. So I'm
you know, blessed to lead a really talented company. And
I guess the other personal thing for me is when
you're in a role for fifteen years, you can become stale.
(10:39):
I think you have to be so very self reflective
and ask yourself, am I delivering and being the best
I can? And actually that move for me sort of
I thought, no, it's the right thing to do. And
final thing for me is my family actually live in
New Zealand they have done for thirty years, so made
the transition a little bit more pleasant and easier. Not
a bad place, not a bad place at all.
Speaker 1 (10:57):
And how are you finding it? What have you found so?
Speaker 3 (11:00):
For I absolutely love it. I think, you know, coming
from London where the weather it's always golden, and we're
coming here on a day like this actually is a
bit wet. But now I love the subtropical you know environment.
I love the culture. You know, I deem myself as
a global citizen. I'm really enjoying learning the culture. It's
just a beautiful place to be. There is a there
(11:23):
is a culture here in New Zealand that I think
for me the UK lost a little while ago, which
is everyone is happy, people engage, people talk, there's the
pleasantries and for me it just really it really feels
like the UK fifteen years ago. And that's a positive statement. Yeah,
just loving the culture, loving the people, loving the beauty.
Speaker 1 (11:43):
I want to shift slightly to the JBS factor. So
in twenty fifteen Scott's sold a majority stake fifty three percent.
I think it is to JBS. So for our listeners
who don't know JBS, who are they and what did
that unlock for.
Speaker 3 (11:59):
You strategic Okay, So JBS are the world's largest meat producer,
originally Brazilian based, but they have a footprint now pretty
much everywhere in the world. They are, as i say,
the world's biggest the meat producer. For us, it's unlocked
a number of things. But actually it's not just about unlocking.
It's about the challenge of becoming better. So they're a
(12:22):
stakeholder and a customer, and you know that is a
challenging thing to manage. And as a stakeholder they push
us hard, and as a customer they demand new technology,
new innovation. And of course it goes without saying they've
opened us opportunities to innovate for them and to install
in some of their sites. So I think all in all,
JBS have really pushed us to be the best scot
(12:44):
that we can possibly be in terms of shareholder and
customer relationship.
Speaker 1 (12:49):
And being a major shareholder. How much sway do they
have over the future focus and the direction of the business.
For example, does it look like, given their background, protein
processing is going to be a key focus moving forward?
Speaker 3 (13:05):
Well, protein is a key focus for us. Anyway, JBS
are complementary and they really are positively supportive of Scott
So they are not telling us where to go and
what to do. They allow us to go back to
them and say, hey, this is where we're forging the
market positively disrupting. Of course sometimes they might get the
first benefit of that, but they're very supportive of us
(13:28):
in what we do. So, yes, a big influencer, but
they really support us.
Speaker 1 (13:33):
So talking about your strategy and some of the Sheerzest
team actually attended your in person investeday where you did
a reveal of Destination twenty thirty plan, which is around
growing revenues from where they are today to five hundred
and thirty million by twenty thirty. So what are the
shifts that you're making as a business and that plan
(13:55):
and how are they enabling that growth path towards that
half a billion number. It's a big number.
Speaker 3 (14:01):
Yeah, so it's a big number. It's a big challenge,
but it's more than achievab lively. But what are the
big shifts? So I think there's four key shifts, but
it's underpinned by one thing. So customer first mindset. We
need to really put the customers at the heart of
everything we do. We need to understand our markets very clearly.
We need leading edge technology, so we need to develop
(14:21):
for the market, and we need high performing teams. So
those three things are those four things are really important
to us. But I think the biggest driver that we
have is changing from an engineering mindset to a customer
first mindset. Historically, Scott has been great at developing amazing
products and then we work out who we're going to
sell them to. What's the size of the market. We
(14:43):
need the market and our customers to drive our technology development.
So high performing teams innovation big things.
Speaker 1 (14:53):
For us in each of your four domains. So let
me get the threat. You got the protein, the materials, handling, appliance,
and minerals mining. They've all got different growth potentials. And look,
we all have a favorite child. Let's be honest. Do
you have a favorite or which one are you picking
(15:14):
as going to be, you know, the key growth driver
or growth engine moving forward.
Speaker 3 (15:19):
Well, I think I think my role is not to
have the favorite. My role is to look at the group.
Of course, there's areas that I'm probably more comfortable with
from my background, so material handling and logistics, But actually
I think that does push me towards learning the other
domains that we have. I think, you know, we have
great potential in the protein market. You will have seen
(15:41):
recently the significant appliance wins that we've had, and obviously
you know we have a very disruptive technology sitting here
behind us. So I like all of them, but Scott
Technology as the group is my focus.
Speaker 1 (15:54):
You have acquired multiple brands to get to this point.
Is that the plan moving forward?
Speaker 3 (16:01):
So within the organization, you know, you've always got an
element of organic growth, which is the five hundred and
thirty by year thirty, But all companies will look at
inorganic acquisition. So we will of course continue to look
outside and see whether there's anything that we can acquire
that is complementary to our business and obviously advances our customers.
So of course, yes, we will always keep an eye
(16:21):
on what we can possibly integrate.
Speaker 1 (16:25):
When you're forming your strategy and your destination twenty thirty,
you're obviously thinking about challenges and risks that exist in
the market. What would you describe are those key challenges
and risks for Scott?
Speaker 3 (16:35):
Yeah, I think the challenges that we've really seen over
the last couple of years are the decline since covid.
We've seen a reluctance to invest from some of our customers,
but I think that is now starting to change. So
that's one thing. And then I think the geopolitical situation
is a risk to us. It's an ever moving position
(16:57):
and we have to do our best with the footprint
that we have globally to manage that. So the customers
and the geopolitical situation.
Speaker 1 (17:04):
M shifting to retail vistas. And you know, I'll frame
I'll be honest. The first time I heard and learned
about Scott Technology, my initial reaction was, there's not a
lot of people who know I have heard of Scott
Technology or know what you do, and it's quite a
vast and including myself, And so what why do you
(17:27):
think that is and what are there any plans to
change it?
Speaker 3 (17:31):
So, yeah, I think it's a good point. I don't
think we've promoted ourselves enough in the past, but there's
probably a lot of things that people don't know. So
if you look at if you look at some of
the major key names in the white goods market, we
are the power behind those names. So we manufacture a
lot of equipment and a lot of product for sub
zero Medea, Bosh General Electric. So you might not see us,
(17:55):
but we probably have. You know, we probably are in
your kitchen somewhere. But yes, we've got to change. Is
that we've got to promote ourselves. We've got to lift
the Scott brand. We've got to market ourselves better. Will
would be a household name? I don't know, but we
certainly need to have much more of a presence and
with the stock market as well as our retail customers.
Speaker 1 (18:14):
What do you think and Vista's looking at Scott potentially
ander appreciate or you think they should know about Scott.
Speaker 3 (18:21):
I think we want investors to know our footprint, the
segments that we work in, some of the products that
we actually manufacture that you probably don't realize that we're there.
You know, you take protein as an example. Effectively, you
know from field to farm and to shop. You know,
we are part of that process. So I think, yeah,
(18:44):
that's our job to really to cascade that and make
that known in the market. I think that's going to
be our challenge going forward. We really need to can
we become a household name? I think we need to
push ourselves become a known name. Yeah.
Speaker 1 (18:58):
Yeah. And closing what what is it that is exciting
you about that path four?
Speaker 3 (19:03):
I think the thing that excites me is is we
have an exceptionally talented team of people globally. We have innovation.
We have a passion to improve. We've just got to
harness that. We've got to focus it in one direction.
It's got to be led and it's got to be
(19:23):
let free. So the excitement for me is the five
point thirty by thirty. Yeah, that's going to be a
hell of a challenge, but actually it's it's achievable, and
I think we can push the boundary and go even further. Yeah,
it's good to have ambitious skulls. Absolutely, we need to
have a goal. We need to have a goal for direction.
Speaker 1 (19:39):
Yep. Well look, thank you very much for a hosting
us well and for our she Is E's she at
Lunched audience. It's been able to understand more about scott
technology and your growth plans. I found it really interesting
and I found it really worthwhile. So glad to be here.
Speaker 3 (19:55):
Thank you very much.
Speaker 1 (20:00):
M Serain stern Stan
Welcome to Shared Lunch. I'm Luke Smith of Shares's and
today we're talking to Mike Chrisman CEO of Scott Technology,
a one hundred and twelve year old ki we automation
success story. Scott has evolved from humble engineering roots into
a global leader in automation or robotics across protein materials, handling, appliance,
manufacturing and mining. Today we're here at rock Clabs, it's
(00:28):
mining automation site. Before we get started, here's some important information.
Speaker 2 (00:33):
Investing involves the risk you might lose the money you
start with. We recommend talking to a licensed financial advisor.
We also recommend reading product disclosure documents before deciding to invest.
Everything you're about to see and here is current at
the time of recording.
Speaker 1 (00:48):
Well, Mike, thanks for hosting us today.
Speaker 3 (00:49):
You're very welcome. Welcome to Rock Clubs.
Speaker 1 (00:51):
There's a bit going on here and it's a big site.
Tell us what is rock Clabs and what do you
do here? So?
Speaker 3 (00:57):
Rock Clubs is our center of excellence for the mining industry.
This is where we design, build and manufacture solutions and
equipment for the mining industry globally.
Speaker 1 (01:07):
Stiffing back around, Scott Technology. You were founded in nineteen thirteen,
humble routes, I believe and motor appears and now the
successful automation company. Who is Scott Technology? And can you
tell us about that story?
Speaker 3 (01:21):
So Scott Technology founded, as you say, back in the
early nineteen hundreds, Yeah, motor repairs originally. As the years
have gone on, we've moved more into automation and automation products.
And who is Scott Technology? Well, we're an automation company
that effectively provides solutions for our customers that move manual
processes into fully automated processes. We manufacture things from robotics
(01:45):
right the way through to the AMS systems that you
see behind us, so effectively we bring value to our customers.
Speaker 1 (01:52):
So what is the difference between robotics and automation and
what are some examples of how you do that here
at Scott Technology.
Speaker 3 (01:58):
Okay, so you're asked in the question for the gigs
amongst us, So that's a difference between the two. So
automation is where we move something from point one to
point two with dumb conveyors. The robotic side of thing
is far more complicated. That's where we have AI learning.
So if I take an example of a beef processing
or a lamb processing system. We will have an AI
(02:22):
vision camera with an X ray vision technology, actually look
at an animal carcass, work out where the bones are,
where the muscle is, and the robotic system will then
cut that carcass in certain angles and different directions, and
it's unique to every single carcass that goes through the system.
So robotics is sorry, automations just moving from A to B.
(02:42):
Robotics is almost a bespoke action for each and every
single action.
Speaker 1 (02:46):
Yeah, that's fascinating. Are there any other examples of that
type of robotics.
Speaker 3 (02:51):
Yeah, So if I take automated guided vehicles as an example,
and actually one of our new technologies called next spot.
So historically forklifts are just a fork lift that somebody
will drive it will pick something up. On our new technology,
we have a fork lift that's fully automated, no driver.
It will pick something up, move it. But then the
system will detach itself from the forks and the back end,
(03:14):
change the front end for a different set of forks
or a different lifting mechanism, go to a different area,
pick something up on a different weight, and then it
will just keep changing the front and the back end
of the system as it seems fit to deliver the solution.
Speaker 1 (03:27):
Possibly slightly cheeky, Christion, but some of the sounds expensive.
Do you mind me asking what sort of range could
some of these products cost to clients?
Speaker 3 (03:36):
Well, I think when you look at the value it
brings to a customer, obviously from our point of view,
we need to make sure that it does bring value
and it does fit in the business case. But you know,
some of these technologies can range from tens of thousands
to hundreds of thousands into millions of dollars, so a
broad spectrum.
Speaker 1 (03:50):
And what is special about Scott and then your DNA
that's allowed you to last across quite a long period
of time doing some quite cool things.
Speaker 3 (03:58):
Well, I think, actually this is a really good question
to ask me, to be honest, because I've only been
here a year. So what I feel in the DNA
is it's such an innovative engineering company with some great
people really focused on bringing value, very much on the
engineering side, and I think if that element of our
DNA has been there since concept, actually that's why we're
still here, that's while we're thriving, and that's why we
(04:20):
continue to throw.
Speaker 1 (04:21):
So talking about your product lines, can you give us
an overview of what it does you do and the
types of problems that you're solving for customers.
Speaker 3 (04:29):
Sure, so if you look at what Scott actually does,
we break it down into four categories, so four clear domains,
so material handling, logistics, protein appliances, and as you say
here mining and we effectively what we do is we
take away those manual processes, so we improve performance, we
improve safety, we bring value to our customer. That's what
we're really here to do.
Speaker 1 (04:51):
What are some examples of customers and a couple of
those product lines and some things that Scott is doing
that's really improving their operations.
Speaker 3 (05:00):
If you take the mining system that we have behind
us here. So historically, when a mining company goes to
a new site, they dig, they test, and they have
to crush the rocks. They have then pulverize them, they
have to do all this special testing on it. And effectively,
what we can do here is they extract the rocks,
but we take it through that entire process that used
to be manual, time consuming in hot industry, hot areas,
(05:23):
and we fully automate that process. So we give them
the results with little to know manual input. So there's
a bed on across the four product lines. How do
you structure.
Speaker 1 (05:32):
Yourselves to manage quite distinct offerings.
Speaker 3 (05:36):
I think it's a really good question. I think first
and foremost, what we have to make sure is that
we think about Scott in the enterprise level, so the
whole company. Yes, we have four distinct areas and an
exec member that manages each of those areas, but really
for us, it's around moving that silo way of thinking
into the enterprise way of thinking and actually using technologies
(05:57):
from each of those domains in the other domains. So
a good example would be protein, where we process livestock
and we use material handling and logistics solutions in that
same environment, so we can cross pollinate our technology between
different sectors. So it enables us to think about the
enterprise rather than just the silo or.
Speaker 1 (06:16):
The audience to ground what it does you're doing. Who
would you describe as the key competitors that are no
one out there to what you're doing?
Speaker 3 (06:22):
Well, I think it's a good question. Again an interesting answer.
I'll spin it around a little bit that actually I
think the key competitor is ourselves and actually is our
customers and their ability to think automate rather than manual process.
So I think that's our biggest competition, to be honest,
our own customers that want to move from manual to automation.
(06:43):
Of course, we have competitors out there in forms of
other companies, but you know there's lots in the material
handling world, a fairly limited amount in both protein and mining,
but nonetheless they're there. But for us, the competitive advantage
is really bringing that value across the whole life cycle.
Speaker 1 (07:00):
Yeah right, So really reframing that airs working smarter, not harder,
and thinking about how to do things in a.
Speaker 3 (07:08):
You know, we don't just want to sell a product
to a customer. You know, we're there to give them
a solution, a solution right from concept right the way
through the full life cycle of the product. You know,
that's I think the key differentiator for us here.
Speaker 1 (07:20):
So to appreciate the scale of Scott Technology, what are
the markets you're operating in globally?
Speaker 3 (07:25):
So we operate in the material handling logistics market that's global.
So North America and Europe is our biggest presence. Protein,
so New Zealand and Australia is the biggest presence of
protein at the moment with a very very fast and
growing North America market, mining predominantly Australia, South Africa. And
then appliance is generally a global product but manufactured out
(07:48):
of our China, China central of excellence.
Speaker 1 (07:51):
Right and revenue. As we're recording us on the twenty second,
you've just released your yesterday full year results yesterday two
hundred and seven million dollars.
Speaker 3 (08:00):
And five million dollars.
Speaker 1 (08:01):
Yet looks flat year on year, but it looks like
there might be a story of two halves there, and
what are the key highlights for you and those results?
Speaker 3 (08:09):
I think the key highlights for me really if you
look back at the first half of financial year twenty five,
we were, you know, way behind budget. You know, we've
started to implement our strategy, so that really is starting
to show dividend and actually we we achieved you know,
the full amount for the year, so we actually you know,
got back to a flat line position. But it's not
(08:30):
just about that. We've increased our profitability. Our net profit
after tax has gone up and our gross margin's gone up.
So yeah, you're right, we're seeing a story of two
halves and actually the latter half of last year really
started to deliver on our twenty thirty strategy.
Speaker 1 (08:44):
And what's driving that operational and margin improvements on the business.
Speaker 3 (08:48):
So you'll see from the strategy we've got this pillar
called one scot so we're unifying some of our systems
around the world. At the moment, we've got multiple systems
for HR, for I for finance, and we're really bringing
those single systems together, so we've got one system rather
than the seven or eight. So there's efficiencies there, there's
(09:09):
focus on delivery, and there's you know, really looking towards
how we how we deliver projects and products, and we're
far more focused on that efficient delivery. So I think
it's a culmination of things, but I kind of come
back to focus is probably the big driver here.
Speaker 1 (09:24):
So I want to shift to you personally, Mike to
recently join the hot seat as CEO in twenty twenty four,
and you had a senior global executive role at the
Dutch logistics automation company vanderaland as Axis. Vandalander got that right,
so keen to understand the story of moving from the
(09:44):
UK to New zealand joining a smaller company like Scott Technology.
What did you see and it has made you say
this is worth moving for?
Speaker 3 (09:53):
Okay, well, first of all, it's it's an absolute privilege
to be here and to be able to lead Scott. Yeah,
working for a large organization, as you can imagine, you know,
sometimes doesn't bring the rewards that you want. It's hard
to make change and really, you know, you use afraid
smaller company, But actually I would spin that around and
say it's a bigger company for opportunity. So this is
(10:17):
it's a blank canvas here. So I absolutely see and
saw the opportunity of growth. I saw the opportunity to
implement some of the things I've done before in terms
of customer The talent here is just phenomenal. So I'm
you know, blessed to lead a really talented company. And
I guess the other personal thing for me is when
you're in a role for fifteen years, you can become stale.
(10:39):
I think you have to be so very self reflective
and ask yourself, am I delivering and being the best
I can? And actually that move for me sort of
I thought, no, it's the right thing to do. And
final thing for me is my family actually live in
New Zealand they have done for thirty years, so made
the transition a little bit more pleasant and easier. Not
a bad place, not a bad place at all.
Speaker 1 (10:57):
And how are you finding it? What have you found so?
Speaker 3 (11:00):
For I absolutely love it. I think, you know, coming
from London where the weather it's always golden, and we're
coming here on a day like this actually is a
bit wet. But now I love the subtropical you know environment.
I love the culture. You know, I deem myself as
a global citizen. I'm really enjoying learning the culture. It's
just a beautiful place to be. There is a there
(11:23):
is a culture here in New Zealand that I think
for me the UK lost a little while ago, which
is everyone is happy, people engage, people talk, there's the
pleasantries and for me it just really it really feels
like the UK fifteen years ago. And that's a positive statement. Yeah,
just loving the culture, loving the people, loving the beauty.
Speaker 1 (11:43):
I want to shift slightly to the JBS factor. So
in twenty fifteen Scott's sold a majority stake fifty three percent.
I think it is to JBS. So for our listeners
who don't know JBS, who are they and what did
that unlock for.
Speaker 3 (11:59):
You strategic Okay, So JBS are the world's largest meat producer,
originally Brazilian based, but they have a footprint now pretty
much everywhere in the world. They are, as i say,
the world's biggest the meat producer. For us, it's unlocked
a number of things. But actually it's not just about unlocking.
It's about the challenge of becoming better. So they're a
(12:22):
stakeholder and a customer, and you know that is a
challenging thing to manage. And as a stakeholder they push
us hard, and as a customer they demand new technology,
new innovation. And of course it goes without saying they've
opened us opportunities to innovate for them and to install
in some of their sites. So I think all in all,
JBS have really pushed us to be the best scot
(12:44):
that we can possibly be in terms of shareholder and
customer relationship.
Speaker 1 (12:49):
And being a major shareholder. How much sway do they
have over the future focus and the direction of the business.
For example, does it look like, given their background, protein
processing is going to be a key focus moving forward?
Speaker 3 (13:05):
Well, protein is a key focus for us. Anyway, JBS
are complementary and they really are positively supportive of Scott
So they are not telling us where to go and
what to do. They allow us to go back to
them and say, hey, this is where we're forging the
market positively disrupting. Of course sometimes they might get the
first benefit of that, but they're very supportive of us
(13:28):
in what we do. So, yes, a big influencer, but
they really support us.
Speaker 1 (13:33):
So talking about your strategy and some of the Sheerzest
team actually attended your in person investeday where you did
a reveal of Destination twenty thirty plan, which is around
growing revenues from where they are today to five hundred
and thirty million by twenty thirty. So what are the
shifts that you're making as a business and that plan
(13:55):
and how are they enabling that growth path towards that
half a billion number. It's a big number.
Speaker 3 (14:01):
Yeah, so it's a big number. It's a big challenge,
but it's more than achievab lively. But what are the
big shifts? So I think there's four key shifts, but
it's underpinned by one thing. So customer first mindset. We
need to really put the customers at the heart of
everything we do. We need to understand our markets very clearly.
We need leading edge technology, so we need to develop
(14:21):
for the market, and we need high performing teams. So
those three things are those four things are really important
to us. But I think the biggest driver that we
have is changing from an engineering mindset to a customer
first mindset. Historically, Scott has been great at developing amazing
products and then we work out who we're going to
sell them to. What's the size of the market. We
(14:43):
need the market and our customers to drive our technology development.
So high performing teams innovation big things.
Speaker 1 (14:53):
For us in each of your four domains. So let
me get the threat. You got the protein, the materials, handling, appliance,
and minerals mining. They've all got different growth potentials. And look,
we all have a favorite child. Let's be honest. Do
you have a favorite or which one are you picking
(15:14):
as going to be, you know, the key growth driver
or growth engine moving forward.
Speaker 3 (15:19):
Well, I think I think my role is not to
have the favorite. My role is to look at the group.
Of course, there's areas that I'm probably more comfortable with
from my background, so material handling and logistics, But actually
I think that does push me towards learning the other
domains that we have. I think, you know, we have
great potential in the protein market. You will have seen
(15:41):
recently the significant appliance wins that we've had, and obviously
you know we have a very disruptive technology sitting here
behind us. So I like all of them, but Scott
Technology as the group is my focus.
Speaker 1 (15:54):
You have acquired multiple brands to get to this point.
Is that the plan moving forward?
Speaker 3 (16:01):
So within the organization, you know, you've always got an
element of organic growth, which is the five hundred and
thirty by year thirty, But all companies will look at
inorganic acquisition. So we will of course continue to look
outside and see whether there's anything that we can acquire
that is complementary to our business and obviously advances our customers.
So of course, yes, we will always keep an eye
(16:21):
on what we can possibly integrate.
Speaker 1 (16:25):
When you're forming your strategy and your destination twenty thirty,
you're obviously thinking about challenges and risks that exist in
the market. What would you describe are those key challenges
and risks for Scott?
Speaker 3 (16:35):
Yeah, I think the challenges that we've really seen over
the last couple of years are the decline since covid.
We've seen a reluctance to invest from some of our customers,
but I think that is now starting to change. So
that's one thing. And then I think the geopolitical situation
is a risk to us. It's an ever moving position
(16:57):
and we have to do our best with the footprint
that we have globally to manage that. So the customers
and the geopolitical situation.
Speaker 1 (17:04):
M shifting to retail vistas. And you know, I'll frame
I'll be honest. The first time I heard and learned
about Scott Technology, my initial reaction was, there's not a
lot of people who know I have heard of Scott
Technology or know what you do, and it's quite a
vast and including myself, And so what why do you
(17:27):
think that is and what are there any plans to
change it?
Speaker 3 (17:31):
So, yeah, I think it's a good point. I don't
think we've promoted ourselves enough in the past, but there's
probably a lot of things that people don't know. So
if you look at if you look at some of
the major key names in the white goods market, we
are the power behind those names. So we manufacture a
lot of equipment and a lot of product for sub
zero Medea, Bosh General Electric. So you might not see us,
(17:55):
but we probably have. You know, we probably are in
your kitchen somewhere. But yes, we've got to change. Is
that we've got to promote ourselves. We've got to lift
the Scott brand. We've got to market ourselves better. Will
would be a household name? I don't know, but we
certainly need to have much more of a presence and
with the stock market as well as our retail customers.
Speaker 1 (18:14):
What do you think and Vista's looking at Scott potentially
ander appreciate or you think they should know about Scott.
Speaker 3 (18:21):
I think we want investors to know our footprint, the
segments that we work in, some of the products that
we actually manufacture that you probably don't realize that we're there.
You know, you take protein as an example. Effectively, you
know from field to farm and to shop. You know,
we are part of that process. So I think, yeah,
(18:44):
that's our job to really to cascade that and make
that known in the market. I think that's going to
be our challenge going forward. We really need to can
we become a household name? I think we need to
push ourselves become a known name. Yeah.
Speaker 1 (18:58):
Yeah. And closing what what is it that is exciting
you about that path four?
Speaker 3 (19:03):
I think the thing that excites me is is we
have an exceptionally talented team of people globally. We have innovation.
We have a passion to improve. We've just got to
harness that. We've got to focus it in one direction.
It's got to be led and it's got to be
(19:23):
let free. So the excitement for me is the five
point thirty by thirty. Yeah, that's going to be a
hell of a challenge, but actually it's it's achievable, and
I think we can push the boundary and go even further. Yeah,
it's good to have ambitious skulls. Absolutely, we need to
have a goal. We need to have a goal for direction.
Speaker 1 (19:39):
Yep. Well look, thank you very much for a hosting
us well and for our she Is E's she at
Lunched audience. It's been able to understand more about scott
technology and your growth plans. I found it really interesting
and I found it really worthwhile. So glad to be here.
Speaker 3 (19:55):
Thank you very much.
Speaker 1 (20:00):
M Serain stern Stan
Popular Podcasts
Las Culturistas with Matt Rogers and Bowen Yang
Ding dong! Join your culture consultants, Matt Rogers and Bowen Yang, on an unforgettable journey into the beating heart of CULTURE. Alongside sizzling special guests, they GET INTO the hottest pop-culture moments of the day and the formative cultural experiences that turned them into Culturistas. Produced by the Big Money Players Network and iHeartRadio.
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
The Brothers Ortiz
The Brothers Ortiz is the story of two brothers–both successful, but in very different ways. Gabe Ortiz becomes a third-highest ranking officer in all of Texas while his younger brother Larry climbs the ranks in Puro Tango Blast, a notorious Texas Prison gang. Gabe doesn’t know all the details of his brother’s nefarious dealings, and he’s made a point not to ask, to protect their relationship. But when Larry is murdered during a home invasion in a rented beach house, Gabe has no choice but to look into what happened that night. To solve Larry’s murder, Gabe, and the whole Ortiz family, must ask each other tough questions.