Scion posts solid financial performance

For immediate release
03 October 2011

Crown Research Institute Scion today announced a solid financial result for the year ending 30 June 2011, posting a profit after tax of $1.8 million.

Scion Chairman Tony Nowell says the result demonstrates the continued sound financial health of the company, which was achieved in a year where the cautious and slow recovery of the New Zealand economy affected revenues.

“The year’s results have been particularly pleasing, both financially and in terms of science achievements. We have a strong balance sheet and science and technology to be proud of, and we are confident that we can fully deliver on Government’s expectations that we create economic value for New Zealand,” he says.

This value will come through the forest industry, New Zealand’s third largest export earner.

“With global drivers providing positive long-term demand for New Zealand forests and the products coming from them, Scion has an important role to play in driving innovation and growth from the industry,” says Mr Nowell.

Scion’s total revenue was $43.4 million, being $3.0 million below budget, but a tight control of costs enabled a profit which was above budget.

Scion Chief Executive Warren Parker says Scion has continued the healthy return on equity and margins seen over the last three years. This year Scion realised a return on equity of 7.2% which is favourable to the 6.0% return on equity budgeted.

“The results show that the business is on a good footing and we are now able to commit our cash reserves to reinvest in upgrading our infrastructure and strengthening our technology transfer expertise,” Dr Parker says.

Science highlights from the year included the launch of Rotorua District Council’s pilot plant for processing biosolid waste into useful chemical products and the release of a parasitoid wasp as a biological control agent against the gumleaf skeletoniser caterpillar.

Licensing Scion’s wood plastic pellet technology was another highlight and a very important step forward to creating the commercial platform for the global uptake of this New Zealand-developed technology.

“While the first commercial applications of the technology are likely to appear in Europe, the intellectual property is retained in New Zealand. We will see direct benefits for New Zealand industry once market acceptance is gained and local composite manufacturers are innovative with the unique properties of the material,” Dr Parker concluded.

Scion’s complete Annual Report can be downloaded from the company’s website at