27th May 2015 08:50
LONDON (Alliance News) - Bonding materials manufacturer Scapa Group PLC on Wednesday said its pretax profit pushed higher in its 2015 financial year on the back of higher revenue and improved margins, prompting it to hike its final dividend by 50%.
Scapa said its pretax profit was up 22% to GBP13.7 million in the year to the end of March, up from GBP11.2 million a year earlier. Revenue for the group rose by 4.4% to GBP236 million from GBP226.1 million, held back somewhat by the strength of sterling. In constant currencies, revenue rose by 8.3%.
Scapa said profit was pushed higher by an improvement in its trading margin in the year, which swelled by a percentage point to 7.9% from 6.9%. Scapa put the improvement down to better customer engagement over the year and the adoption of progressive and more strategic approach to pricing.
The company said the good results meant it has pushed up its proposed final dividend payout by 50% to 1.5 pence per share from 1p. Scapa did not pay an interim dividend.
Revenue in its healthcare arm, which makes adhesive products ranging from plasters to drug infusion patches, rose in the year on the back of the launch of a new wound-care product in the first half. In its industrial division, which makes industrial tapes and films, revenue was pushed higher by market share gains. The electronics business finished the year well, despite tough conditions in Asia, as it was boosted by new product launches.
"This year we delivered a record performance with market share gains resulting in revenue and profit growth across all our markets and regions. While it is early in the new financial year we expect to continue the momentum and believe the group is well positioned to make continued progress in the coming year," said Chief Executive Heejae Chae.
Scapa shares were up 5.6% to 181.63 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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