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182.176-182.90
Brendan McAtamney Non-Executive Director Appointment to the Board Brendan joined the Board on 1 February 2018. Experience Brendan has held various senior management positions with Abbott, latterly as Vice President Commercial and Corporate Officer within its Established Pharmaceuticals division. External appointments Brendan is currently Chief Executive Officer of UDG Healthcare, since 2 February 2016, having served as an Executive Director since December 2013, and having originally joined UDG as Chief Operating Officer in 2013.
Juliet Thompson Non-Executive Director Appointment to the Board Juliet joined the Board on 21 January 2019 and is currently Chairman of the Remuneration Committee. Experience Juliet has spent approximately 20 years working as an investment banker and strategic adviser to healthcare companies in Europe and has built a strong track record of advising companies on corporate strategy, equity and debt fundraisings and international M&A. Her experience includes senior roles at Stifel Financial Corp, Nomura Code Securities and WestLB Panmure. She has also worked at Deloitte and Touche and HM Treasury. Juliet is a member of ICAEW (ACA). External appointments Juliet is currently a Non-Executive Director of Vectura plc, Novacyt Group, Nexstim Oy and GI Dynamics Inc.
Wendy Baker Group General Counsel and Company Secretary Appointment to the Board Wendy joined Scapa on 11 September 2017. Experience Wendy is a solicitor with over 15 years’ experience as General Counsel and Company Secretary for multi-national, fully listed and AIM listed companies, including Volex Group plc, Promethean World plc and API Group plc. Wendy also qualified as an associate of the Chartered Insurance Institute prior to joining the legal profession
We have positioned ourselves to lead as a trusted strategic outsource partner
Overview
Scapa Healthcare continues to lead as a trusted strategic outsource partner of choice, providing turn-key solutions into three target markets: Advanced Wound Care, Consumer Wellness and Medical Device Fixation. Through innovation, expertise and alignment of our core values, we support leading healthcare companies through their growth challenges by developing and manufacturing innovative skin friendly fixation devices and topical skin care solutions. Our deep understanding of the markets we serve and our strategic relationship with our customers enabled us to deliver another year of profitable growth.
We have continued to invest in the business and find innovative solutions to strengthen our position as our customers’ preferred outsource partner.
Performance Healthcare revenue of £141.3m (2018: £112.8m) on a statutory basis is an increase of 25.3%. On a continuing basis revenue increased 22.1% to £137.7m (2018: £112.8m). This includes the impact of the BioMed and Systagenix acquisitions. Organic revenues on a constant currency basis are 4.3% less than prior year caused by delays in product launches, the knock-on effect of operational issues experienced by some of our key customers, and the impact of the shutdown of a third party steriliser in the UK.
Systagenix has performed very well in the first six months following the acquisition, delivering higher revenues and accelerating the cost-out programme. Healthcare trading profit of £20.9m (2018: £17.4m) is 20.1% higher and on a continuing basis is £17.3m (2018: £17.4m). Organic trading profit on a constant currency basis is flat at £17.4m.
Holdings in Company
“T he Systagenix technology transfer was a transformative transaction for the Company. We now have two balanced businesses that are global and market leaders.”
Highlights • The acquisition, by way of a technology transfer, of the R&D and manufacturing assets of Systagenix, completes the Healthcare value chain and validates our strategy. • Completion of the Knoxville purpose-built site, creating a Healthcare Centre of Excellence for North America. • The Industrial business is fast approaching the target of 15.0% profit margin and is poised for growth. • Refreshed and strengthened the team to continue to deliver. • Crossed £300m revenue milestone and record trading profits delivered.
Dear shareholder During the past ten years, we have consistently set ourselves ambitious financial and strategic challenges and have delivered. In FY2019, we have met our commitments once again. The Group crossed the £300m revenue threshold and delivered record trading profits. We completed the acquisition of Systagenix by the way of a technology transfer; the transaction delivered not only the scale in Healthcare but the final leg of our value chain that will enable us to complete our transition from contract manufacturer to turn-key solution provider.
Moreover, it validates our strategy to partner with our MedTech customers who are undergoing strategic realignment in an industry that is undergoing a period of significant change. It is now evident that there is a significant trend of MedTech companies focusing on their core competence and shifting to an asset-light strategy. Scapa, as a first mover and long-standing partner of our customers, is well positioned to benefit.
The Industrial business is fast approaching the profit margin target we have set ourselves. The self-help journey that began at negative profit has become a highly profitable and cash-generative Industrial business. The optimisation of our business portfolio has also delivered a defensible business with significantly reduced volatility. During the past ten years, despite the cyclical fluctuation of our Industrial markets, including the current downturn, we have been able to defend our topline while improving our margins through aggressive cost-out measures.
As one of the largest and few companies with a global footprint, Scapa Industrial is ideally positioned to grow in a US$30bn pressure sensitive material market. Our focus on key segments where we have competitive positions and technologies should enable us to grow as we shift our focus towards growth. We now have two balanced businesses with clear strategic roadmaps with significant potential
Dear shareholder
FY2019 has been a transformative year for the Group as we reached milestones in both revenue and trading profit. We have strengthened our position, expanded our business and built a strong platform for growth. The acquisition in October 2018, by way of technology transfer, of the R&D and manufacturing assets of Systagenix and the exclusive five-year development and supply agreement for Systagenix advanced wound care products completes our Healthcare journey from a roll stock supplier to a fully integrated healthcare company with extensive technologies and capabilities in the markets we serve.
The Industrial business is now one of the best-in-class in the US$30bn pressure sensitive market with a global footprint, broad technologies and a portfolio of market-leading customers. We now have two balanced businesses with tremendous potential.
Performance and dividend Statutory Group revenue increased 7.0% to £311.8m (2018: £291.5m) and revenue on a continuing basis¹ increased 5.7% to £308.2m (2018: £291.5m). Trading profit increased 10.7% to £38.2m (2018: £34.5m) and on a continuing basis was £34.6m (2018: £34.5m). On a constant currency basis2, revenue on a continuing basis grew 5.6% and trading profits declined 0.3%. On an organic basis trading profit margins improved to 12.5% (2018: 11.8%). Adjusted earnings per share increased 3.8% to 18.9p (2018: 18.2p) and basic earnings per share was 5.3p (2018: 15.4p); the reduction in statutory profit is largely as a result of several business reorganisation and site closure projects.
We have seen a further strengthening of the balance sheet including continued actions to manage the legacy pension scheme. The Group ended the year with an adjusted net debt of £43.7m3 (2018: £3.8m) after the acquisition of Systagenix for a cash consideration of £34.0m and the one-off stock build of £2.9m for the Dunstable and Knoxville site moves.
The Board is proposing to increase the final and full year dividend by 20.8% to 2.9p. Subject to shareholder approval at the Annual General Meeting the dividend will be paid on 23 August 2019 to shareholders on the register on 26 July 2019. The ex-dividend date is 25 July 2019.
Outlook We reached a milestone of £300m in revenue and delivered a record trading profit. In Industrial, we continue to focus on margin improvement and cash generation to support future growth. In Healthcare, the technology transfer of Systagenix’s R&D and manufacturing capabilities from a strategic customer was a transformative transaction. It has enhanced the foundation of our Healthcare strategy and provides the capabilities to deliver long-term sustainable growth as we continue to expand our offering across the complete value chain. I remain confident of Scapa’s ability to deliver increased returns to our shareholders.
Best of luck with your investments
This one will do quite great in my opinion
Give it some time.
I will post some extracts from the Annual Report
issued yesterday
Yes sorry petertee, I know the worst thing to be is impatient in this game. I'm relatively new to the investing world, been doing it a year and haven't faired well. This is my last ditch attempt to recover some of my losses. Losses incurred my selling too early due to panic selling rather than riding it out. Have great respect for others with extensive experience such as yourself and always try to take on board constructive comments from these boards to take a balanced view. Here's hoping for a positive outcome.
By taking a very slightly longer view than just one day
will yield better results - in my humble opinion
Try one week perhaps?
Just from my 50+ years experience
Market is controlled by the MM
Sooner or later they must release SP
from it's current malaise
Then 200p plus will appear
Market is controlled by the MM
Sooner or later they must release SP
from it's current malaise
Then 200p plus will appear
I admire your optimism petertee. I invested @ £1.90 yesterday and looking at quite a paper loss. Seems to be heading lower, admittedly low volumes.
I admire your optimism petertee. I invested @ £1.90 yesterday and looking at quite a paper loss. Seems to be heading lower, admittedly low volumes.
Even though buys still over sells
So far this morning 8 to 6
So I just bought more @ 178.00
Much quieter today - still Strong Buy
Yesterday 3 million shares bought - only one million sold
Today should see a strong rise above 200p
It's up to the interest the public shows, and institutions
MM will play their games - as usual
Proactive Investor makes a funny about the days winners saying Scapa CEO isn't scarpering after all and he's sticking with it like the adhesive products they make :)
Any purchases sub 200p are bargain basement now. Went from over 300p to 150p on loss of ONE client, absolute madness. Global company, two arms industrial and medical. Last time she was 150p was early 2015, when it wasn't half the company it is now. Spends most of the time around the 400p arena.
Building a platform for sustainable growth
http://www.scapa.com/files/Scapa%20R%2BA%202019.pdf
Picked up some more sub 180p
Annual Report and notice of AGM
Results have no bearing - read the various RNS
Market Makers must balance their books - at some point
Hence they are doing tree-shakes because they need your shares
These shares will be back close to 300p within a reasonable time
Just my opinion - do research before buying
Maybe the results have a bearing although they look reasonable with regard to earnings and debt reduction.
The SP has fallen for MM to pick up stop loss orders
Still 2.9 million buys compared to only 900k sells
Cannot keep prices down - still lots of big buy trades
No need to panic sell - in my opinion
Currently 176.5-178.6