Scapa on track for FY

Technical adhesive tapes firm Scapa said trading conditions since its first half results have improved in line with management expectations and expects full year results to be within market forecasts.Revenues in Europe have recovered well whereas North America has remained a tougher market, the group said. On a constant currency basis, group sales in the second half have averaged 9% above the same time a year earlier while operating profits for the year ended 31 March 2010 are expected to be within the range of market expectations. Net cash balances are ahead of brokers` forecasts at approximately £4.8m. Scapa added that it has decided to close our its loss-making plant in Carlstadt, New Jersey. This will result in cash closure costs of under £0.4m which will be offset by a release of working capital, asset impairments of approximately £1.3m and the loss of 35 jobs, the group explained in a company statement. Also the group said in February its insurers paid in full $0.9m in respect of an asbestos product liability judgement. This represents a fraction of the group's insurance cover in this area.