Scapa reports 10% Q1 sales hike

TECHNICAL tapes manufacturer Scapa Group says it has seen sales jump in the first quarter of its new financial year and is “cautiously optimistic” looking ahead.

The Ashton-Under-Lyne-based company said sales were 10% ahead of the same period in 2009, although trading then was described as “weak.”

In a statement ahead of its annual meeting this afternoon, the firm said:” We have seen strong performances across market segments, particularly in industrial and medical

“From a regional perspective, North America has continued to improve, aided by underlying recovery in the economy and orders accelerated by the closure of our Carlsbad facility. Asia and Europe are sustaining the revenue level achieved in the fourth quarter as we focus on quality of revenue.”

Scapa said increased volumes and reduced cost base would increase its profits, its key goal for the year.

It added: “The board is pleased with the positive start to the year. The emphasis on key market segments is beginning to yield positive results.

“In particular, we have seen the pipeline for medical and electronics building with new opportunities and market leading applications.  Whilst our order book has increased during the first quarter, we have limited visibility for the remainder of the year.

“We remain cautiously optimistic for the year given the global economic uncertainty.”

Chief executive Heejae Chai told TheBusinessDesk: “We are moving in the right direction and are excited about the potential for our tapes in new, higher margin markets.”

Scapa’s specialist tapes are being used by some electronics companies to mount LEDs in the television manufacturing process.