Scapa says FY trading ahead of expectations

Scapa said on Thursday that it performed well in the year to the end of March 2017, with the good progress reported in the interims continuing.

The AIM-listed supplier of bonding solutions and manufacturer of adhesive-based products said revenue, trading profit and margins are all ahead of expectations.

Revenue in the healthcare division grew 16.5%, or 5% at constant currency, including the contribution from EuroMed, which it acquired in May last year. Margins improved in the second half and are expected to exceed 15% for the year through efficiency improvement programmes and growth in higher margin turn key products.

The industrial business, meanwhile, continues to deliver on its asset optimisation strategy, with margin expected to reach double digits for the year, driven by asset rationalisation and lower material costs.

Scapa ended the year with net debt of £16m.

Chief executive Heejae Chae said: "We have delivered another set of strong results which are ahead of expectations as we continue to execute our strategies for Healthcare and Industrial. We remain confident of achieving further progress through organic growth, efficiency improvements and acquisitions."