Scapa Group posts strong maiden results as healthcare division grows

27th May 2015 11:58

Scapa Group, a manufacturer of bonding materials, posted strong full-year results helped by an investment in its healthcare business.The group reported revenues increased by 4.4% to £236m while pre-tax profit rose 22.3% to £13.7m.Scapa noted these results were despite a backdrop of continuing macroeconomic conditions and currency movements.Revenues in the healthcare business grew 7.9% to £73.8m at constant exchange rates thanks to the acquisition of First Water and the launch of the Medifix wearables brand.Industrial revenues rose 6.6% to £147.8m driven by the launch of new products during the first half of the year.The electronics segment was hurt by difficult market conditions in Asia, but still managed to grow by 28.6%.Showing confidence in the business, Scapa increased its dividend by 50% to 1.5p.Chief executive Heejae Chae said: "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."N+1 Singer analysts welcomed the results: "In a generally subdued economic environment, growth was seen across all geographies and segments, an impressive achievement."Despite the share price rising recently, we see ongoing upside potential as management's strategy advances."Shares in Scapa jumped 7.3% to 184.57p on Wednesday at 12:03.