Rapid progress at adhesives and tapes maker Scapa has prompted City analysts to dramatically re-think estimates. The shares reacted strongly, but there should be more to come.
IC TIP:
Buy
at
69p
A strong second half and "good" final quarter, aided by December’s WEBTEC acquisition, means both underlying operating and pre-tax profit are well up on the previous year and better than expected. Cost-cutting and higher quality healthcare revenue improved operating margins too, and management has barely scratched the surface here.
Broker Arden Partners now expects underlying pre-tax profit of £8.8m in the year to March 2012, up from £8.2m – results are due on 29 May – and £11.5m in the current year, giving adjusted EPS of 4.8p.
