28th Jul 2010 08:56
28 July 2010
Scapa Group plc
AGM Statement
Scapa Group plc is issuing the following statement in respect of the first quarter of fiscal year 2011 ahead of its Annual General Meeting to be held at 2:00pm today.
Current Trading
Trading during the first quarter has maintained the positive momentum we experienced at the end of the last fiscal year. As a result, sales for Quarter 1 were up approximately 10% against a weak corresponding period last year. We have seen strong performances across market segments, particularly in Industrial and Medical. From a regional perspective, North America has continued to improve, aided by underlying recovery in the economy and orders accelerated by the closure of our Carlstadt facility. Asia and Europe are sustaining the revenue level achieved in the fourth quarter as we focus on quality of revenue.
The increased volume and reduced cost base will further improve our profitability which is a key deliverable for the year. Additionally, emphasis has been placed on product profitability through portfolio rationalisation and margin control given significant increase in certain material costs.
Outlook
The Board is pleased with the positive start to the year. The emphasis on key market segments is beginning to yield positive results. In particular, we have seen the pipeline for Medical and Electronics building with new opportunities and market leading applications. Whilst our order book has increased during the first quarter, we have limited visibility for the remainder of the year. We remain cautiously optimistic for the year given the global economic uncertainty.
For further information:
Scapa Group plc Heejae Chae - Chief Executive Tel: 0161 301 7430
Scapa Group plc Brian Tenner - Finance Director Tel: 0161 301 7430
Arden Partners Chris Hardie Tel: 0207 614 5917
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