(Alliance News) - Scapa Group PLC on Monday posted a narrowed loss for the first half of financial 2021 and said it expects full-year earnings to benefit from additional volumes and cost improvement programmes.
Shares in the healthcare and industrial firm were trading 4.7% higher at 159.00 pence each on Tuesday morning in London.
For the six months ended September 30, Scapa posted pretax loss of GBP500,000, narrowed from the GBP1.0 million loss recorded the year prior. This was despite revenue falling 24% year-on-year to GBP122.0 million from GBP160.8 million.
Exceptional items charges during the first half totalled GBP2.8 million, down significantly from GBP10.6 million the year prior while the charge for amortisation of intangible assets fell to GBP1.4 million from GBP3.0 million.
By division, Healthcare revenue fell 26% to GBP55.1 million due to the postponement of elective surgeries and reduced footfall across the retail channels and revenue in the Industrial segment fell 22% to GBP66.9 million.
Looking ahead, the Manchester-based company said it has started to see a return to pre-Covid-19 demand levels in the Industrial division, adding that encouraging progress in Healthcare is driving momentum. It stated that while uncertainty remains due to the resurgence of Covid-19 infections, revenue in both divisions in the second half is expected to exceed the first half.
"As demand returns to pre-Covid-19 levels, we have the agility to meet this demand, positioning us well to capture additional market share. We have taken strategic and operational actions to position us better both in terms of profitability and to further strengthen the balance sheet. Whilst mindful of the recent global resurgence of Covid infections, we expect that revenue and profitability will continue to improve during the second half of the financial year," said Chief Executive Heejae Chae.
Cash held as at September-end was GP14.4 million, up from GBP8.0 million on September, 30, 2019.
By Ife Taiwo; ifetaiwo@alliancenews.com
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