Trading Statement - October 2020
Scapa Group Ltd (AIM: SCPA) is today providing an unaudited period end update for the six months ended 30 September 2020.
Further to the AGM statement of August 2020, Scapa Group has continued to track ahead of its COVID plan. Scapa now anticipates that FY21 H1 Group revenues will be ahead of the Board’s expectations. Revenues for the Industrial division are expected to close c.22% less than prior year. In Healthcare, revenues are expected to be c.23% less than prior year (excluding ConvaTec)². As previously indicated, Scapa acted swiftly to implement structural costs changes across the business in response to the impact of the COVID-19 pandemic on the reduction in product demand, participated in various government assistance programs and ensured variable costs were closely managed to match.
|H1 Statutory Basis||H1 Continuing Basis1||Change|
|FY21||FY20||FY21||FY20||Statutory Basis||Continuing Basis1|
|Scapa Group Revenues||122.0||160.8||118.3||157.2||-24.1%||-24.7%|
Working capital management remains strong, with adjusted net debt³ at the end of FY21 H1 of £21.8m (including net proceeds of £31.6m from the equity placement in May 2020), compared to the FY20 year-end position of £54.4m.
The combination of the better than anticipated business performance in FY21 H1, cost containment actions and continued improvement across both divisions has put the Group on a solid foundation as it enters FY21 H2. Further details on expectations for the full year trading performance will be provided with the interim results on 17 November 2020.
1 Group results before the impact of IFRS 15 provision release for the Systagenix acquisition
2 ConvaTec revenues in FY20 were £3.5m, excluding this the change versus prior year is 22.6% on a statutory basis
3 Adjusted net debt excludes the IFRS16 impact of lease liabilities
For further information:
Scapa Group Ltd - Tel: 0161 301 7430
Heejae Chae – Chief Executive
Oskar Zahn - Chief Financial Officer
Numis Securities Limited - Tel: 020 7260 1000
Mark Lander, Freddie Barnfield
Berenberg - Tel: 020 3207 7800
Chris Bowman, Toby Flaux
FTI Consulting - Tel: 020 3727 1000
Simon Conway, Victoria Foster Mitchell