Scapa delivers record profits as revenues top £300m

Adhesives manufacturer Scapa reached a milestone of more than £300m in revenue and delivered record profits in its last trading year.

Scapa saw revenues increase 7% to £311.8m on a statutory basis, with the group now expecting full-year revenues, trading profits and margins to all be in line with market expectations.

Healthcare revenues grew 22.1% for the year ended 31 March, driven by Scape's acquisitions of BioMed and Systagenix during the period.

Organic trading profit was projected to be flat year-on-year, reflecting improved margins as the group continues to drive its portfolio toward turnkey products.

In its industrial arm, Scapa saw revenues decline 4.6% due to adverse macro conditions, particularly in the automotive and European cable markets.

Adjusted net debt came to £43.7m after the acquisition of Systagenix's manufacturing facility for £34m and £2.9m in costs associated with one-off stock builds at its Dunstable and Knoxville sites.

Chief executive Heejae Chae said: "In industrial, we continue to focus on margin improvement and cash generation to support future growth.

"In healthcare, the technology transfer of Systagenix's R&D and manufacturing capabilities from a strategic partner and customer was a transformative transaction. It has enhanced the foundations of our Healthcare strategy and provides the capabilities to deliver long-term sustainable growth as we continue to expand our offering across the complete value chain."

As of 0840 BST, Scapa shares had climbed 5.37% to 333.50p.