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Scapa master of its own destiny, but healthcare shift helps

Streamlining industrial operations, while focusing on new products and acquisitions in healthcare, triggered another healthy year for the maker of adhesive and tape

Six consecutive years of operating margin growth in an underwhelming economic environment proved once again that Scapa 's (SCPA) self-help strategy has made it, in the words of chief Heejae Chae, "master of its own destiny". But investors have become accustomed to impressive performances, and were more excited about the acquisition of wound care business Euromed on results day.

IC TIP: Hold at 252p

The acquisition allows the group to offer a full suite of adhesive solutions, says Mr Chae. This should help Scapa to secure extra multi-year outsourcing contracts from healthcare organisations, which in the year to 31 March triggered a 26 per cent rise in revenues and adjusted operating profit at the division.

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