Scapa narrows H1 trading loss

The group made a trading loss of 1.0m, compared with an underlying loss of 6.4m in the second half of last year.

Pre-tax loss was 3.1m, against a previous H1 profit of 2.7m.

Scapa finished the period with a net cash balance positive of 2.9m after funding 3.5m of exceptional costs. Previously announced restructuring was largely completed and will benefit the second half.

Sales performed slightly better than the anticipated 20% decline with turnover of 86.7m, 16.7% lower on an underlying basis.

Closure of the Bellegarde facility in France was completed in July 2009 despite industrial action.

Production and supply issues associated with automotive tapes, coupled with a spiked demand from some customers, resulted in higher than normal overtime and express freight costs. Over 1m of extra cost resulted from the transfer much of the group's production to Italy.

'These problems have now been largely resolved and the business is well positioned to benefit from a further reduction in costs in the second half,' said Scapa.

No interim dividend was proposed.

Story provided by Business Financial Newswire