Scapa Group PLC Trading Update (6939C)

TIDMSCPA

RNS Number : 6939C

Scapa Group PLC

12 February 2020

12 February 2020

LEI No. 213800QIPVTK5ES5UU36

Scapa Group plc

Trading Update

Scapa Group plc (AIM: SCPA) provides an update on current trading ahead of its financial year-end on 31 March 2020.

The Group expects FY20 revenue to be approximately GBP306 million, broadly in line with market expectations. However, trading profit is now expected to be approximately GBP28 million, significantly below consensus.

Healthcare revenue is estimated to be approximately GBP139 million, slightly ahead of market expectations and greater than last year despite the loss of the ConvaTec contract. Healthcare trading profit is expected to be lower than consensus, reflecting slower progress in reducing costs than expected at the time of the interim results. The Group continues to focus on our pipeline of new programs as we leverage our technologies and capabilities to drive our organic growth and reduce the cost of operations.

Industrial revenue is expected to be approximately GBP168 million, which is slightly below market expectations but has a material impact on Group trading profit. This is primarily the result of adverse macroeconomic conditions, particularly in the automotive and specialty products markets.

The Group is focused on rigorous execution of the strategy as it continues to increase efficiency and convert its pipeline of opportunities to improve sales and margin performance. The Group expects the macro environment to remain challenging in some of the industrial markets in which it operates.

We believe that we have the right vision and strategy to capitalize on the outlook and opportunities for Healthcare and Industrial. Our Healthcare franchise is well positioned to benefit from the changes in the medical device market and whilst we expect the macro-environment to remain challenging, we will focus on cost reductions to drive the margin in Industrial to historical levels.

Scapa expects to report its full year results on 19 May 2020.

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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February 12, 2020 02:00 ET (07:00 GMT)