Scapa sticks to expectations as revenues dip

Shares in Scapa Group fell on Wednesday after the company reported a 3.4% drop in first-half revenues due to adverse currency movements during the previous period.

Despite the revenue drop for the six months ended 30 September, the adhesive tape manufacturer said that it had managed to achieve margin growth and an increase in profit before exceptional items, amortisation of intangible assets and legacy pension costs and finance charges.

Healthcare revenue grew by 0.2% and the AIM traded company said it expected new programs to start to benefit revenues further in the second half of the year.

Scapa also closed its manufacturing facility in Liverpool, New York, during the period and reported that the integration of Connecticut-based medical supplier Markel Industries, which was acquired in August, was nearly complete.

“We remain confident of strong progress for the year and we anticipate the profit for the year will be in line with expectations, excluding the impact of the recently announced Gargrave healthcare transaction,” said a statement from Scapa.

Scapa acquired wound dressing manufacturer Systagenix for £31m in September, along with its manufacturing operations, sterilisation services, warehouse facilities and R&D and regulatory support functions in Gargrave, UK, from medical device company Acelity.

Scapa Group’s shares were down 4.77% at 403.60p at 1250 BST.