Wound care group ahead of forecast at half year point

Scapa Group, the Manchester wound care specialist, said its first half revenues are expected to be better than previously forecast.

In a trading update this morning, it announced revenues for the six months ended September 30, were down by around 24%, at £122m, but it said it expects to beat previous expectations.

Further to its AGM statement in August, Scapa said it has continued to track ahead of its COVID plan.

First half revenues for the industrial division are expected to close around 22% less than the prior year, while in healthcare, revenues are expected to be approximately 23% less than the previous year.

It said, 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 programmes and ensured variable costs were closely managed to match.

Working capital management remains strong, it said, with adjusted net debt at the end of the interim period of £21.8m, including net proceeds of £31.6m from the equity placement in May 2020, compared with the previous year-end position of £54.4m.

The combination of the better than anticipated business performance in fiscal year 2021 half one, cost containment actions and continued improvement across both divisions has put the group on a solid foundation as it enters its second half period.

Further details on expectations for the full year trading performance will be provided with the interim results on November 17, 2020.