Scapa returns to trading profit
TECHNICAL tapes manufacturer Scapa Group has cut its losses following a year of restructuring.
In the year to March 31 the business cut net losses from £10.9m to £2.8m on sales of £176.7m, up 1.5%.
In the second half the group made an underlying trading profit of £2.6m, an improvement on the £6.4m loss in the same period last year.
Chief executive Heejae Chae said: “We returned to trading profitability and cash generation in the second half of the year. The group’s second half profit alone is a £9m turnaround from the same period last year.
“We completed our cost cutting programme ahead of plan with annualised savings realised at over £11m. Close management of working capital combined with action on the cost base has maintained a strong net cash position.”
Last month the Tameside headquartered company said it had shut one of its loss-making plants in the US, with the loss of 35 jobs.
