Scapa Group announced its Interim Results for the six months ended 30 September 2018 on Tuesday. The group is a global bonding products and adhesive manufacturer and supplier. Following the announcement, shares in the group dropped by over 7.5% this morning.
Pre-tax profit for the six-month period dropped to £9.7 million as revenue dropped 3.4% to £140.7 million. Additionally, trading profit increased 2.4% to £17.1 million and trading profit margins continued to improve to 12.2%, up from the 11.5% figure in 2017.
Adjusted earnings per share remained constant at 8.3p, unchanged from 2017. Moreover, basic earnings per share dropped to 4.3p from 7.5p in 2017.
The results also reveal a net debt of £5.2 million, excluding the £31.4 million paid for the acquisition of the Systagenix manufacturing facility.
Scapa provides its tape solutions to a variety of different sectors.
These include healthcare, electronics, consumer, industrial, energy and automotive.
Commenting on the results, chief executive Heejae Chae said:
“The first half has delivered a solid trading performance and continued good progress in the transformation of Scapa from an industrial tape company to a group with two businesses that are global and market leaders. The Industrial business is one of the leading global tape companies with strong profit margins and cash flow. The Healthcare business is now a world-leading strategic turn-key partner to major global healthcare companies.”
“The acquisition, by way of a technology transfer, of the R&D and manufacturing assets of Systagenix and the exclusive five-year development and supply agreement for Systagenix advanced wound care products to Acelity is a milestone in Scapa’s development, completing our Healthcare journey from a roll stock supplier to a fully integrated healthcare company with extensive technologies and capabilities in the markets we serve. We have now completed three technology transfers in the last twelve months with an aggregate annualised revenue exceeding £40m. We believe that further opportunities to partner with our healthcare customers exist as the medical device sector undergoes disruption.”
Whilst the macro environment remains challenging, we anticipate the profit for the year will be in line with expectations, excluding the impact of the Systagenix healthcare transaction. This transformative transaction is expected to be modestly earnings dilutive in the current year and materially accretive from FY20 onwards.”
In addition to Scapa, Bonmarche and easyJet also made stock exchange announcements outlining their half-year and final results respectively.
At 10:54 GMT, shares in Scapa Group plc (LON:SCPA) dropped by 7.63%.
