City forecasts were highly favourable ahead of the release of adhesive tape manufacturer Scapa Group 's (SCPA) half-year figures. But the strong rise in the share price suggests the market had underestimated the extent of the efficiency gains in the industrial division, where trading profits were up by a third at constant currencies.
IC TIP:
Buy
at
315p
Group revenues were up 3.7 per cent on the same basis, a respectable result, but the benefits of the incremental 'self-help' measures introduced by management do their job in the space between the top line and earnings. Even with integration costs linked to the marquee deal to acquire woundcare business EuroMed, the group trading margin increased by 100 basis points to 9.4 per cent.