Shares of Ashton-under-Lyne-based wound care and industrial firm Scapa Group rose about 35% on Friday after the firm published an AGM trading update saying it delivered revenues in the three months to June 30, 2020, “well ahead of its COVID-19 scenario plan.”
“Trading in both divisions has also continued to improve into FY21 Q2 to date,” said Scapa.
“Scapa acted swiftly to implement structural costs changes across the business in response to the impact of the COVID-19 pandemic on the reduction in product demand, as well as ensuring variable costs were closely managed to match the new demand levels.
“Working capital management remains strong, with adjusted net debt at the end of FY21 Q1 of £18.4m (including net proceeds of £31.6m from the equity placement in May 2020), compared to the FY20 year-end position of £54.4m.
“The combination of the better than anticipated business performance in FY21 to date, early cost intervention measures and continued improvement across both divisions mean the Group’s outlook on full year trading profit is trending approximately 10% ahead of market expectations.”