Scapa (SCPA) continued to cut costs and grow profits in the year to 31 March, just as management promised. Despite little help from end markets, the Manchester-based tapes and adhesives supplier widened its gross margin to 6.9 per cent from 6.6 per cent, while growing revenues organically across the group in the high single digits. At its healthcare division, turnover even increased 21 per cent.
As a result, pre-tax profits climbed an impressive 17 per cent and adjusted EPS rose 31 per cent to 7.2p a share. A £12m non-cash charge arising from a lowering of the applicable UK corporation tax rate largely explains the differences in reported figures in the table.
Good earnings visibility in the healthcare division, and good sales momentum in the industrial and electronics divisions, gave management confidence to double the final dividend, which was only reinstated last year. Analysts at N+1 Singer upgraded their adjusted EPS estimates for the current year by 16 per cent to 7.3p (from 6.9p for the year just ended), rising to 7.8p in fiscal 2016, citing trading momentum and the lower tax rate.
SCAPA (SCPA) | ||||
---|---|---|---|---|
ORD PRICE: | 112p | MARKET VALUE: | £ 165m | |
TOUCH: | 111-112p | 12-MONTH HIGH: | 130p | LOW: 76p |
DIVIDEND YIELD: | 0.9% | PE RATIO: | NA | |
NET ASSET VALUE: | 32p* | NET CASH: | £5.4m |
Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2010 | 177 | -5.2 | -1.9 | nil |
2011 | 192 | 6.1 | 2.4 | nil |
2012 | 196 | 10.5 | 4.5 | nil |
2013 (restated) | 209 | 9.6 | 0.8 | 0.5 |
2014 | 226 | 11.2 | -4.6 | 1.0 |
% change | +8 | +17 | - | +100 |
Ex-div: 23 Jul Payment: 22 Aug *Includes intangible assets of £27.5m, or 19p a share |