Today's announcement has further boosted its share price, which has been growing steadily for several years.
Companies: Scapa Group Plc
Scapa (LON: SCPA) has released a trading update today which has pleased shareholders, with Management anticipating Group profits for the current financial year to be ahead of current expectations.
Shares were up 3% in early morning trading today as a result of the positive news.
Management said Group Revenue, Profits and Margins are all ahead of last year, benefitting from the contribution from the May 2016 acquisition of Euromed.
Scapa, who supply bonding and adhesive products to a variety of sectors including healthcare, automotive, electronics and energy, has seen its share price grow almost 150% since this time years ago.
The Group also recently sold its Swiss facility for £13.6m strengthening the balance sheet, while using some of the funds to acquire Markel Industries for £7.8m.
N+1 Singer's research note echoed the positive tone of today's announcement, commenting:
"We have upgraded FY18 PBT by 4% to £33.9m (EPS from 16.4p to 17.1p) and by 5% in FY19 to £38.6m (EPS from 18.5p to 19.5p). Our net debt forecast at the year end of £4.6m has improved to a net cash expectation of £1.3m thanks to the higher Rorschach receipt and the improved profitability."
Scapa will release its results for the half year on November 21st.
The stock has grown exponentially in the five years to today, growing from an October 2012 price of c. 65p to today's price of 467p. The Group has a PE ratio of 26x versus the industry median of 17x, with a market cap of £695m.
