SCPA.L Regulatory News (SCPA)

14 April 2016

Scapa Group plc ("Scapa" or "the Group")

Year-end trading update

Scapa Group plc (AIM: SCPA), a global supplier of bonding materials and solutions for the Healthcare and Industrial markets, is today providing an unaudited year end update for the twelve months ended 31 March 2016.

The Group performed well and the progress reported in the Interim Results has continued with the Group delivering a strong second half to the year. Group revenue is ahead of last year and Group trading profits* and margins are both ahead of last year and expectations. 

Healthcare continues to deliver strong performance with annual revenue growth of 26.4%, or 19.2% at constant exchange rates, with margins maintained year on year. It is delivering on the strategy to become the turnkey solution provider of choice for leading global healthcare companies. We recently signed a six-year contract extension with Convatec, a world leading Wound Therapeutics company, further strengthening this strategic relationship.

Industrial has made further good progress with its asset optimisation strategy and the trading profit* and margin are ahead of last year.

Healthy cash flow in the period ensured the Group ended the year with net debt of £2.7m, also better than expected and after outflows from exceptional costs related to the asset optimisation strategy. The balance sheet has been further strengthened and benefitted from significant progress on the pension programme.

Heejae Chae, CEO commented:

"We have delivered another set of strong results which are ahead of expectations as we execute our strategies for Healthcare and Industrial. Notwithstanding challenging global market conditions, we remain confident of achieving further progress through organic growth and acquisitions."

Scapa expects to report its full year results on 24 May 2016.

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\* Trading profit is before exceptional items, amortisation of intangible assets and legacy pension credits, costs and finance charges