Scapa surges back into profit

TECHNICAL tapes manufacturer Scapa has seen a dramatic reversal of its fortunes with a surge in annual sales and a return to profit.

The Ashton-under-Lyne based company, which has businesses around the world, supplies bonding and adhesive products to five key sectors – medical, electronics, consumer, industrial and transportation.

In the year to the end of March Scapa saw revenue rise 8.8% to £192.3m, while there was even better progress in terms of profitability. After making an operating loss last year of £1.5m, it made an operating profit of £8m, while a pre-tax loss of £5.2m was reversed with a £6.1m profit.

Chief executive Heejae Chae said he was pleased with the results which had topped market expectations.

“Our focus on strategic markets is yielding positive results with medical sales growing 29%.  Industrial sales increased 6% after concentrating on product mix and margin enhancement.  We have also invested in Asia to drive the electronics segment and are excited at the future potential.”

He said the executive team would continue to focus on improving the business.

“We will continue to execute our strategy to focus on higher value-added business in growth markets to deliver sustainable and profitable growth. 

“As we build on the progress made in 2010/11, we are in a strong position to take advantage of any opportunities that arise in our markets and we are confident that we will continue to improve and make further progress in the new financial year.”

Last week Scapa opened a new base in India to meet expected demand on the sub-continent. It already has businesses China, Korea and Malaysia.

Chairman James Wallace added that Scapa is at “the beginning of a journey” but that progress in the year under review was pleasing.