'You won't find me blaming the macros for poor company performance,' Scapa (SCPA) chief executive Heejae Chae tells Shares. His comments come on the bonding materials and solutions specialist reports full-year results for the 12 months to the end of March.

In fairness, there was no need as shares in the £376.9 million cap nudge 3.3% higher to 253.75p after the company posted a 14.5% increase in trading profit to £21.3 million. Revenue at the group grew 4.5% to £246.7 million which translated to a 16.5% increase in earnings per share to 10.6p.


Scapa's management continues to focus on delivering its strategy for further revenue growth, a strong underlying profit performance, good cash generation and significant improvement in adjusted earnings per share.

Healthcare continues to perform strongly as the group takes a greater share of the expanding available markets as well as deepening its strategic relationships with its customers. On a constant currency basis, this division saw revenue increase 26.4% to £93.3 million while trading profits increased 26.1%.

Results were also accompanied by the announcement of Scapa's latest acquisition. The group has acquired the entire issued share capital of EuroMed, the hydrocolloid-based wound care solutions business based in Orangeburg, New York for an initial cash payment of $35 million, plus up to $7 million depending on performance in calendar 2016. The new acquisition should ensure further margin progression at Scapa where group trading profit margins further improved to 8.6% in the year to the end of March.

Issue Date: 24 May 2016