By Liz White, ERJ staff
Blackburn, UK-Scapa Group plc is optimistic that its current performance is in line with its May forecast, since it has seen an improvement in margins as selling price increases came into effect,â€ during its first quarter.
The better news from the UK-headquartered group-a manufacturer of adhesive films, tapes and compounds-follows an earlier statement that Scapa had made a poor start to the new financial year.â€
Now Scapa says it has made significant reductions in central management overheads,â€ adding that this will reduce costs by Â£1.2 million (Euro 1.74 million) in a full year. As a result the group will take an exceptional charge of about Â£1.4 million in its half year accounts, a 25 July trading statement from the Blackburn, UK-based group said.
Scapa's board is looking at other routes to improve its financial performance and said it will update shareholders at its interim results announcement in November.
Scapa's speciality adhesive tapes, which include foam-backed types, are aimed at medical, automotive, industrial assembly and construction uses, and it also supplies tapes and flame retardant compounds for the cables sector. The group uses a wide range of elastomers in its adhesives.