Scapa Group PLC COVID-19 UPDATE (7932H)
27 March 2020 - 6:00PM
UK Regulatory
TIDMSCPA
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 GBP20m uncommitted accordion facility. Current headroom
under the existing facility combined with this accordion is
expected to provide the Group with combined circa GBP40m 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 020 7260 1000
Berenberg
(Joint Broker)
Chris Bowman/Toby Flaux 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 rns@lseg.com or visit www.rns.com.
END
UPDKKABNKBKBPNB
(END) Dow Jones Newswires
March 27, 2020 03:00 ET (07:00 GMT)
Scapa (LSE:SCPA)
Historical Stock Chart
From Apr 2024 to May 2024
Scapa (LSE:SCPA)
Historical Stock Chart
From May 2023 to May 2024