Information  X 
Enter a valid email address

Scapa Group PLC (SCPA)

  Print      Mail a friend       Annual reports

Friday 27 March, 2020

Scapa Group PLC

COVID-19 UPDATE

RNS Number : 7932H
Scapa Group PLC
27 March 2020
 


 

 

27 March 2020

 

LEI No. 213800QIPVTK5ES5UU36

 

 

Scapa Group plc ("the Company")

 

COVID-19 UPDATE

 

Scapa Group plc (AIM: SCPA), a diversified Healthcare and Industrial company focused on bringing best-in-class innovation, design and manufacturing solutions to its customers, announces an update following the outbreak of the COVID-19 pandemic.

 

The rapid worldwide spread of COVID-19 is prompting governments to implement sudden, restrictive measures in an attempt to curb the spread of the virus. During this period, our priorities are to safeguard the health and safety of our employees and our local communities; to support and enforce government actions to slow the spread of COVID-19; and to assess and mitigate the risks to our business continuity.

 

The Company reiterates guidance for its financial year ending 31 March 2020 and expects Group underlying trading profit to be in line with the trading update provided on 12 February 2020. However, the Company continues to monitor the evolving situation closely. Looking ahead, we expect economic activity and consequently trading to be impacted by restrictive governmental measures put in place to contain the spread of Covid-19. However the quantum and precise impact will depend on the length of time such measures are in place and the severity of these, which cannot be quantified at this stage. The Group continues to monitor the situation carefully and will update the market in due course.

 

Our Healthcare sites have been assigned "essential business" status in the US and UK and our Industrial sites are similarly deemed essential manufacturing by these respective governments. As of 26 March 2020, all Scapa sites are operating, with the exception of India, which has been temporarily closed pursuant to Government mandate.

 

In order to mitigate any potential material adverse financial impact, the Group is taking steps to optimise cash flow, which include cost savings, working capital reduction and tight management of capex. We also intend to suspend the annual dividend. We are closely monitoring, and assessing the relevance to Scapa, all available forms of relief from governments on direct and indirect taxes, social charges and employee relief funds.

 

In addition, whilst current leverage is 1.6 times, compared to a covenant of 3.0 times, given the considerable uncertainty facing all companies, the Group is exploring all necessary contingency plans and has therefore commenced discussions with its lenders to utilise a £20m uncommitted  accordion facility.  Current headroom under the existing facility combined with this accordion is expected to provide the Group with combined circa £40m liquidity.  In addition we are also in discussions with the pension trustee regarding the bi-annual contributions to create additional flexibility should it be needed. 

 

For further information:

 

Scapa Group plc

Heejae Chae - Group Chief Executive

Oskar Zahn - Chief Finance Officer

 

 0161 301 7430

Numis Securities Limited

(Nominated Adviser and Joint Broker)

Freddie Barnfield/Mark Lander

 

Berenberg

(Joint Broker)

Chris Bowman/Toby Flaux

 

 020 7260 1000

 

 

 

020 3207 7800

FTI Consulting

(Media Relations)

Simon Conway/Victoria Foster Mitchell

 

020 3727 1000

 

About Scapa Group plc

Scapa Group plc is a diversified Healthcare and Industrial company focused on bringing best-in-class innovation, design and manufacturing solutions to its customers.

 

Healthcare

Scapa Healthcare is the trusted strategic partner of choice for the world's leading companies in Advanced Wound Care, Consumer Wellness and Medical Device Fixation. We partner with the top global MedTech companies to develop and manufacture innovative skin friendly medical device fixation and topical solutions, from inception through to market delivery, from our state-of-the-art facilities.

 

For further information, please visit www.scapahealthcare.com

 

Industrial

Scapa Industrial is a global supplier of bonding solutions and manufacturer of adhesive-based products which offer meaningful value in industrial applications due to their lightweight, easy-to-apply properties. We are recognised for our unparalleled range of products, including adhesive tapes, films and foams, and we can engineer custom designs for even the most unique applications.

 

For further information, please visit www.scapaindustrial.com

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
UPDKKABNKBKBPNB

a d v e r t i s e m e n t