Good progress continues through year-end at Scapa Group

Scapa Group issued an unaudited year end update for the 12 months ended 31 March on Thursday, reporting that the good progress reported in its interim results had continued.

The AIM-traded firm said overall group results were in line with the improved expectations outlined in its October trading update.

In healthcare, revenues grew 3.8% for the year, despite currency headwinds in the second half.

Sales growth for the division in the second half was described as strong, at 6.8% on a constant currency basis.

Margins for the year were expected to be above 15%, which the board said reflected investment in the integration of two technology transfers completed during the year.

In the industrial unit, Scapa said the company continued to deliver on its asset optimisation strategy.

Margins in the division were further improved driven by the benefit of Asian restructuring, and more efficient cost to serve.

The Markel acquisition was now complete, the board confirmed, and site consolidations were underway.

Healthy cash flow during the period also ensured the group ended the year with net debt of £3.8m, after the acquisition of Markel Industries for $10.2m and BioMed Laboratories for$19m.

“This year we have delivered another set of strong results, and completed two acquisitions - Markel, our first industrial acquisition, and BioMed, our first healthcare acquisition outside adhesive technology,” said CEO Heejae Chae.

“We also completed two technology transfers in healthcare as we execute our growth strategy.”

Chae said there was “clear potential” in both healthcare and industrial to further improve performance through organic growth, efficiency and acquisitions.

“It is with great sadness that we announced yesterday a fatal accident at the Dunstable facility in the UK.

“I join with all of my colleagues and fellow directors in expressing our sincere condolences to the family and friends of the deceased.”