Scapa trading ahead of expectations at end of first half

Scapa Group updated the market on the six months ended 30 September on Tuesday, saying that it was continuing to track ahead of its Covid-19 plan, and now expected first half group revenues to be ahead of its expectations.

The AIM-traded firm said revenues for the Industrial division were expected to close around 22% below prior year for the six months ended 30 September.

In healthcare, revenues were set to be 23% less than prior year, excluding ConvaTec.

As it had previously indicated, Scapa said it “acted swiftly” to implement structural cost changes across the business in response to the impact of the Covid-19 pandemic on the reduction in product demand, participated in various government assistance programmes, and ensured variable costs were “closely managed”.

The board said working capital management remained “strong”, with adjusted net debt at the end of the first half standing at £21.8m, including net proceeds of £31.6m from the equity placement in May, compared to the 2020 year-end position of £54.4m.

“The combination of the better than anticipated business performance in the first half, cost containment actions and continued improvement across both divisions has put the group on a solid foundation as it enters the second half,” the board said in its statement.

Scapa said it would issue its interim results for the six months ended 30 September on 17 November.

At 0903 BST, shares in Scapa Group were up 7.29% at 132.4p.