Shares of Ashton-under-Lyne-based healthcare and industrial firm Scapa Group fell about 14% on Tuesday after it said its revenue increased 2.8% to £320.6 million in the 12 months ended March 31, 2020 — but said its recovery from the coronavirus crisis is currently moving “at a slower pace.”

Scapa said it made a loss before tax of £51 million compared to a 2019 profit before tax of £14.9 million due largely to “exceptional items.”

Trading profit was down 27.2% to £27.8 million following the loss of a crucial contract with ConvaTec.

“Year-to-date trading (is) better than initially forecast under Scapa’s COVID-19 scenario, but recovery is at a slower pace,” said the firm.

Scapa reported “successful completion of a placing and subscription of new ordinary shares to raise gross proceeds of £32.6m, together with the board proposing a suspension of the dividend this year to further strengthen the balance sheet.”

Scapa CEO Heejae Chae said: “I am pleased to report a resilient financial and operational performance during the year, despite the significant impact of the loss of the ConvaTec contract.

“We have delivered record revenue and made good progress on our operational footprint plans for integrating and streamlining the business.

“In Healthcare, we continue to focus on operational efficiencies to optimise assets, enhance capabilities and develop a strong pipeline.

“In Industrial, despite substantial market contraction in our key market segments, especially in the second half of the year, we delivered a trading profit margin in the top tier of overall performance by our peers.

“As we navigate through the COVID-19 pandemic, it is difficult to predict how long the restrictions will last or the shape of the recovery.

“Regardless of the ‘new normal’, our strategy is to position ourselves to react decisively and quickly to take advantage of the opportunities that will emerge.

“To provide flexibility to fully realise these opportunities, in May 2020 we strengthened our balance sheet through a successful placing and subscription, as well as a debt-refinancing to provide additional liquidity.

“Whilst we recognise the past year has been difficult, we are confident these actions, alongside cost saving initiatives, will enable Scapa to cement its strong market position, trusted outsource partner status and ability to quickly support its customers as we continue to focus on rigorous execution of our strategy in the short, medium and long-term.”