Strong year sees Scapa restore dividend

A STRONG year of progress for east Manchester-based Scapa Group, the international manufacturer of technical tapes and other bonding materials, saw the company deliver its best financial results in more than a decade.

The group said its improved financial performance, achieved in challenging economic times, had given it the confidence to reinstate the payment of a dividend.

Outside of its day-today operations it said also addressed two long-standing legacy issues, one relating to its UK pension fund and the other to asbestos-related issues.

During the year to the end of March Scapa’s revenues grew 6.6% to £208.8m. Pre-tax profits rocketed 33.7% to £12.7m, while trading profit was up 28% ti £13.7m.

Chief executive Heejae Chae, who has led the recent improvement in Scapa’s fortunes said: “The group has delivered a record performance this period with another year of improved profit and shareholder value.

“We continue to execute our strategy of self-help and improve the balance of our business both geographically and in the markets in which we operate.  This was demonstrated this year by the significant improvement in performance of our healthcare business and the strong contribution made by WEBTEC, the acquisition made in December 2011.  

In addition to the improvement in performance, this year has also seen us “successfully address our legacy issues, bringing significantly greater clarity to related future funding commitments. Accordingly we remain well placed to make further strategic investments in the future.

“While we remain mindful of the uncertainty of the current economic environment, particularly in Europe, the board is confident that Scapa is well positioned to make further progress in the coming financial year.”

Chairman James Wallace paid tribute to Scapa’s resilience and said this was down to the strategy of diversifying into new markets such as healthcare.

He said the board felt it was appropriate to pay a “modest” final dividend of 0.5p per share after “another year of improved performance.”