Ashton-under-Lyne-based healthcare and industrial firm Scapa Group said on Thursday it raised £32.6 million via the placing and subscription of just over 31 million new ordinary shares.

Scapa also issued an update on trading and management actions “during a period of unprecedented disruption as a result of the Covid-19 pandemic.”

The firm said it has received approval from its lending banks for a new £15 million short-term facility to sit alongside its existing £80 million Revolving Credit Facility (RCF), “and for certain temporary revisions to its covenant arrangements.”

Scapa said it expects to deliver record revenues for the year ended March 31, 2020, despite the loss of its contract with ConvaTec

It said statutory group revenue increased 2.8% to £320.6 million.

However Scapa warned: “The group is expecting a period where revenues will be substantially impacted, particularly in Q1 FY 2021 and in early Q2 FY 2021, before returning to more normal levels, and in-line with management’s pre-COVID-19 budget, from Q3 FY 2021 onwards.”

On the share sale, Scapa said: “The placing price of 105 pence per share represents a discount of 1.87 per cent. to the closing middle market share price of 107 pence on 13 May 2020, being the last practicable business day prior to the publication of this announcement.

“The placing shares and subscription shares being issued together represent approximately 19.99 per cent. of the existing ordinary share capital of the company prior to the placing and subscription.”

Scapa CEO Heejae Chae said: “We are pleased to announce the successful completion of the placing, which was significantly oversubscribed, and are grateful for the support from existing and new institutions in these unprecedented times.

“We look forward to fully realising the opportunities we foresee in Healthcare and Industrial in a post-COVID-19 environment.”