Shares of Greater Manchester-based healthcare and industrial adhesives firm Scapa Group fell about 15% on Tuesday amid news that CEO Heejae Chae is stepping down.

Scapa also unveiled results for the year to March 31 showing its revenue crossed the £300 million revenue milestone for the first time.

Scapa said revenue increased 7% to £311.8 million but profit before tax fell to £14.9 million from £28.8 million “largely as a result of several business reorganisation and site closure projects.”

Scapa is proposing to increase its final and full year dividend by 20.8% to 2.9p.

CEO Heejae Chae said: “FY 2019 was a transformational year when Scapa took definitive steps to cement a leading position in healthcare.

“We have delivered a record profit and crossed the £300m revenue milestone for the first time.

“The acquisition, by way of a technology transfer of the R&D and manufacturing assets of Systagenix, advances our offering across the continuum of the healthcare value chain and validates our strategy. 

“Our industrial business is now a truly global business that is highly profitable and cash-generative. 

“As we enter the next phase of growth, we have refreshed and strengthened our leadership team, which positions us well to meet the increasing demands of our customers. 

“I am confident that we have the right strategy and capabilities in place to continue to deliver.”

Scapa said Heejae Chae has informed the board of his intention to step down as CEO after 10 years with the firm.

It said a search and selection process is underway and Chae will remain with the company to ensure a smooth transition to a new CEO.

Scapa chairman Larry Pentz said: “On behalf of the board, I would like to thank Heejae for his excellent leadership and impressive contributions to Scapa since joining as group chief executive in 2009.

“During his ten-year tenure, Heejae has delivered significant growth, greatly improved efficiency and built firm foundations, setting a strategic blueprint that will continue to drive future growth.

“Under his leadership, the business transformed financially and strategically. 

“Scapa is a high performing global organisation underpinned by an entrepreneurial culture which has delivered significant shareholder value.

“As a result, Scapa is financially stronger with a successful strategy and is well placed to deliver on its many future growth opportunities.

“We wish Heejae well, when he eventually leaves us after working through a smooth transition with his successor.”  

Chae said: “It was a difficult decision to step away from my post as group chief executive of Scapa, but I feel now is the right time to bring in new leadership to deliver the next phase of our growth strategy.

“I have been with the company through many chapters of its growth, from a predominantly industrial business to a significant sized international company now predominantly healthcare focused.

“I consider myself privileged to have worked with such esteemed colleagues and partners during my tenure.

“I remain committed to Scapa during this transition period and am confident that the business is poised to continue to deliver long-term sustainable growth from the current strategy.”