Scapa Group PLC Period end update (8234B)

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RNS Number : 8234B

Scapa Group PLC

13 October 2020

13 October 2020

LEI No. 213800QIPVTK5ES5UU36

Scapa Group plc

Period end update

Scapa Group plc (AIM: SCPA) is today providing an unaudited period end update for the six months ended 30 September 2020.

Further to the AGM statement of August 2020, Scapa Group has continued to track ahead of its COVID plan. Scapa now anticipates that FY21 H1 Group revenues will be ahead of the Board's expectations. Revenues for the Industrial division are expected to close c.22% less than prior year. In Healthcare, revenues are expected to be c.23% less than prior year (excluding ConvaTec)(2). As previously indicated, Scapa acted swiftly to implement structural costs 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 programs and ensured variable costs were closely managed to match.

 
                            H1 Statutory Basis     H1 Continuing            Change 
                                                      Basis(1) 
                                                                    Statutory   Continuing 
 GBPm                        FY21        FY20      FY21     FY20      Basis      Basis(1) 
                          ----------  ---------  -------  -------  ----------  ----------- 
 Healthcare Revenues(2)      55.1        74.7      51.4     71.1     -26.2%       -27.6% 
                          ----------  ---------  -------  -------  ----------  ----------- 
 Industrial Revenues         66.9        86.1      66.9     86.1     -22.3%       -22.3% 
                          ----------  ---------  -------  -------  ----------  ----------- 
 Scapa Group Revenues        122.0      160.8     118.3    157.2     -24.1%       -24.7% 
                          ----------  ---------  -------  -------  ----------  ----------- 
 

Working capital management remains strong, with adjusted net debt(3) at the end of FY21 H1 of GBP21.8m (including net proceeds of GBP31.6m from the equity placement in May 2020), compared to the FY20 year-end position of GBP54.4m.

The combination of the better than anticipated business performance in FY21 H1, cost containment actions and continued improvement across both divisions has put the Group on a solid foundation as it enters FY21 H2. Further details on expectations for the full year trading performance will be provided with the interim results on 17 November 2020.

   (1)   Group results before the impact of IFRS 15 provision release for the Systagenix acquisition 

(2) ConvaTec revenues in FY20 were GBP3.5m, excluding this the change versus prior year is 22.6% on a statutory basis

(3) Adjusted net debt excludes the IFRS16 impact of lease liabilities

For further information:

 
 Scapa Group plc             Heejae Chae - Group Chief Executive   Tel: [phone] 
                              Oskar Zahn - Chief Financial          7430 
                              Officer 
 Numis Securities Limited    Mark Lander, Freddie Barnfield        Tel: [phone] 
  (Nominated Adviser/Joint                                          1000 
  Broker) 
                            ------------------------------------  -------------- 
 Berenberg                   Chris Bowman, Toby Flaux              Tel: [phone] 
  (Joint Broker)                                                    7800 
                            ------------------------------------  -------------- 
 FTI Consulting              Simon Conway, Victoria Foster         Tel: [phone] 
  (Media Relations)           Mitchell                              1000 
                            ------------------------------------  -------------- 
 

About Scapa Group plc

Scapa Group plc is a diversified Healthcare and Industrial company focused on bringing best-in-class innovation, design and manufacturing solutions to its customers.

Healthcare

Scapa Healthcare is the trusted strategic partner of choice for the world's leading companies in Advanced Wound Care, Consumer Wellness and Medical Device Fixation. We partner with the top global MedTech companies to develop and manufacture innovative skin friendly medical device fixation and topical solutions, from inception through to market delivery, from our state-of-the-art facilities.

For further information, please visit www.scapahealthcare.com

Industrial

Scapa Industrial is a global supplier of bonding solutions and manufacturer of adhesive-based products which offer meaningful value in industrial applications due to their lightweight, easy-to-apply properties. We are recognised for our unparalleled range of products, including adhesive tapes, films and foams, and we can engineer custom designs for even the most unique applications.

For further information, please visit www.scapaindustrial.com

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October 13, 2020 02:00 ET (06:00 GMT)