9th Oct 2019 07:50
(Alliance News) - Scapa Group PLC on Wednesday said it expects its interim profit to be hurt by the loss of a contract, while revenue will grow on strong performance of the Healthcare unit.
The industrial tape and adhesives maker said its trading performance in the six months to the end of September was in line with expectations, with revenue growth of 14% from GBP140.7 million reported a year ago. On a constant currency basis, revenue improved by 10%, predominantly driven by Healthcare and the Systagenix technology.
The Healthcare unit, revenue was up 23% on last year, or 17% in constant currency, despite the loss of ConvaTec Group PLC volumes. Scapa's profit however, is expected to be hurt by the loss of the contract with FTSE 250 medical products firm ConvaTec and is estimated to be 17% below last year's GBP17.1 million, meaning about GBP14.2 million.
Scapa said it anticipates that the second half of the year will benefit from a strong pipeline of new products and technology transfers from new and existing customers.
Turning to the Industrial unit, Scapa said revenue increased 3.9% despite strong market headwinds, particularly in the automotive sector. On a constant currency basis, revenue rose by 1.5%.
Looking ahead, Scapa said it expects the market-wide challenges to continue. Despite that, Scapa said it considers itself to be well positioned to make further progress against its strategic, operational and financial objectives and remains confident in its outlook.
By Evelina Grecenko; [email protected]
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