25th Jul 2006 10:15
Scapa Group PLC25 July 2006 25 July 2006 Scapa Group plc AGM Trading Statement In the period since the issue of our Preliminary Results for 2005/06, little haschanged to the general trading climate reported at that time. Sales for thefirst quarter have been in line with expectations and, on an underlying basis,are 3% up on last year. This gain relates to our European operations andreflects the improvement initiatives put into place last year. Upward pressure on raw materials linked to the current high price of crude oilhas continued through the quarter with full margin recovery an ongoing area offocus. Relentless cost reduction continues to be the way of life at Scapa withthe already announced third phase of the major cost reduction programme to beput into place following the proposed disposal of our Megolon compoundingbusiness. This will bring total expenditure on the full programme to date to£3.8m, with projected annual savings of the same amount. The sale of our Irish distribution business for £1m, which includes £0.4m ofdeferred consideration, was completed mid June and negotiations on the Sale andPurchase Agreement for our Megolon business are now at an advanced stage. For further information: Calvin O'Connor Chief Executive Tel: 0161 301 7430Colin White Finance Director Tel: 0161 301 7430 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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