The Dunedin-based processing line producer, which had posted a net profit of $3.08 million for the previous year ended August 31, said revenue declined to $25m from $29m a year earlier.
The company had operating cash flows of $1.2m, and cash on hand of $1.2m at the end of the period, while total assets rose by $8m to $30.2m. Scott Technology specialises in manufacturing automated production lines for the international appliance industry, and meat processing lines through its joint venture with meat company PPCS.
Directors declared no dividend for the year, after paying a 6c per share dividend the previous year.
"The United States housing crisis, which sparked the global credit crunch, directly affected the company's key market -- the home appliance manufacturers," said managing director Chris Hopkins.
"Another primary market for the company, meat processing, also suffered under the strain of drought and changing fundamentals. Despite all this, the company has been successful in securing new work and the current forward work load is now at more normal levels."
However, Scott Technology needed working capital, including cash, to fund its growth plans and to return to more normal trading levels in the short to medium term.
