Scapa delivers record revenues but EPS falls, CEO stands down

Diversified healthcare and industrial outfit Scapa delivered record revenue and profits in its recently wrapped up trading year but basic earnings per share crashed following site closures and a reorganisation of the firm.

Revenues grew 7% to £311.8m and trading profits increased 10.7% to £38.2m.

However, on a constant currency and continuing basis, trading profit fell by 0.3%, while basic earnings per share came to 5.3p, a marked drop on the 15.4p recorded a year earlier, reflecting the business reorganisation and site closures.

Adjusted net debt skyrocketed to £43.7m from the £3.8m seen in the year ended 31 March 2018 as a result of Scapa's £34m acquisition of a Systagenix manufacturing facility and a one-off stock build of £2.9m to fund the site moves of its Dunstable and Knoxville operations.

Despite the slimmed-down EPs and increased net debt, Scapa raised its dividend by 20.8% to 2.9p per share.

Elsewhere, Scapa revealed that after ten years with the company, Heejae Chae will step down as chief executive but will remain with the firm in order to ensure a smooth transition to a new CEO.

Chae said: "It was a difficult decision to step away from my post as group chief executive of Scapa, but I feel now is the right time to bring in new leadership to deliver the next phase of our growth strategy."

As of 1115 BST, Scapa shares had tumbled 16.49% to 311.49p.