Specialist health firm’s revenues hit by currency fluctuations

Greater Manchester firm Scapa has said profits and margins are ahead of last year in an update to the market.

But the Ashton company warned that its revenues were down by 3.4% as a result of adverse currency movement.

The firm recently completed the £31m acquisition of a specialist wound management manufacturing business.

Scapa announced it was buying Sussex based Systagenix Wound Management Manufacturing in September and the deal has now been completed.

Scapa is a global specialist in adhesive products for the healthcare and industrial sectors.

According to the update healthcare revenue grew 0.2% (3.4% on a constant currency basis).

Chief executive Heejae Chae said: “We anticipate the tech transfers and new programs will, as previously announced, start to benefit revenues during the second half of the year.

“Industrial profit and margin improved on lower revenue, and we continue to make good progress toward the medium term margin target of 15%.

“The integration of Markel Industries is nearly complete and we expect the synergy benefit to come through during the second half of the year. We also announced the closure of our Liverpool facility in New York.

“Our cash generation remains strong and the Group ended the first six months with a net debt of £5.2m.

“We remain confident of strong progress for the year and we anticipate the profit for the year will be in line with expectations, excluding the impact of the recently announced Gargrave healthcare transaction.”

Further details and the impact of this transaction will be included in the half year results next month.