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13 Apr 2017 07:00
13 April 2017
Scapa Group plc ("Scapa" or "the Group")
Year-end trading update
Scapa Group plc (AIM: SCPA), a global supplier of bonding solutions and manufacturer of adhesive-based products for the Healthcare and Industrial markets, is today providing an unaudited year end update for the twelve months ended 31 March 2017.
The Group performed well and the good progress reported in the Interim Results has continued. As a result, Group revenue, trading profit* and margins are all ahead of expectations.
Healthcare division revenues grew 16.5%, or 5.0% at constant exchange rates, including the contribution from EuroMed which was acquired in May 2016. Margins improved in H2 and will exceed 15% for the year through efficiency improvement programmes and growth in higher margin turn key products.
Industrial continues to deliver on its asset optimisation strategy. Industrial margin is expected to reach double digit for the year, driven by asset rationalisation and lower material costs.
Strong cash flow in the period ensured the Group ended the year with net debt of £16m, after the acquisition of EuroMed for US$35m, also better than expected.
Heejae Chae, CEO commented:
"We have delivered another set of strong results which are ahead of expectations as we continue to execute our strategies for Healthcare and Industrial. We remain confident of achieving further progress through organic growth, efficiency improvements and acquisitions."
Scapa expects to report its full year results on 23 May 2017.
For further information:
Scapa Group plc Heejae Chae - Chief Executive Tel: 0161 301 7430
Graham Hardcastle - Finance Director
Numis Securities Limited Mark Lander, Richard Thomas Tel: 020 7260 1000
(Nominated Adviser/Joint Broker)
Berenberg Chris Bowman Tel: 020 3207 7800
(Joint Broker)
Weber Shandwick Financial PR Nick Oborne Tel: 0207 067 0000
\* Trading profit is before exceptional items, amortisation of intangible assets and legacy pension costs and finance charges
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