Scapa Group plc year-end statement

The Board of Scapa today issued the following statement in respect of the financial year ended 31 March 2010:

“Overall trading conditions since our Interim Results have improved in line with management expectations. Revenues in Europe have recovered well whereas North America has remained a tougher market.  On a constant currency basis, Group sales in the second half have averaged 9% above the comparable period in the prior year.

Operating profits for the year as a whole are expected to be within the range of market expectations. Net cash balances are ahead of brokers` forecasts at approximately £4.8 million.
 
At the end of the period the decision was taken to close our small, loss-making plant in Carlstadt, New Jersey.  This will result in cash closure costs of under £0.4m which will be more than offset by a release of working capital, asset impairments of approximately £1.3m and the loss of 35 jobs.  It is intended to transfer a proportion of the production to other Scapa sites in North America and Europe.

In February 2010 our insurers paid in full $0.9m in respect of an asbestos product liability judgement.  This represents a small fraction of the Group’s insurance cover in this area.

Preliminary results for the financial year 2009/10 are due to be released on 27 May 2010.”

For further information:

Scapa Group plc
Heejae Chae   Chief Executive  Tel: 0161 301 7430
Brian Tenner   Finance Director  Tel: 0161 301 7430

Arden Partners plc
Chris Hardie       Tel: 0207 614 5929