Judging by the length of the accompanying statement, Scapa's annual shareholders' meeting was a brief affair. A solid first quarter had been spent mending profit margins by cutting more costs and rectifying inefficiencies, it said. The company was confident about the outlook, too, yet the share price still fell. It is down a fifth since April, meaning that the shares look very cheap given the scope for self-help at the specialist adhesives maker.
IC TIP:
Buy
at
56p
Clearly, Europe, where Scapa makes over half its sales, could be a problem, but cost-cutting and exiting low-margin business will have the biggest impact on profits for the next few years.
