Shares of Ashton-under-Lyne-based wound care and industrial firm Scapa Group rose about 7.5% on Tuesday after it published a trading update saying it expects its first-half revenues will come in ahead of its expectations.
In an update for the six months ended September 30, 2020, Scapa said it expects first-half revenue to fall 24.1% year-on-year to £122 million.
“Further to the AGM statement of August 2020, Scapa Group has continued to track ahead of its COVID plan,” said the company.
“Scapa now anticipates that FY21 H1 group revenues will be ahead of the board’s expectations.
“Revenues for the industrial division are expected to close c.22% less than prior year.
“In healthcare, revenues are expected to be c.23% less than prior year (excluding ConvaTec).
“As previously indicated, 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, participated in various government assistance programs and ensured variable costs were closely managed to match …
“The combination of the better than anticipated business performance in FY21 H1, cost containment actions and continued improvement across both divisions has put the group on a solid foundation as it enters FY21 H2.
“Further details on expectations for the full year trading performance will be provided with the interim results on 17 November 2020.”