A Greater Manchester-based healthcare and industrial firm, which was recently acquired by a global engineering and manufacturing company in a deal worth more than Â£ 400million, has returned to profit before tax in its last financial year.
Scapa Group reported a profit of Â£ 5.5million for the 12 months ended March 31, 2021, after recording a loss of Â£ 51million the previous year.
The group’s income fell over the period from Â£ 320.6million to Â£ 272.5million.
The accounts are the first since it was acquired by AMS Holdco 2, a subsidiary of US-based Schweitzer-Mauduit International Inc (SWM), in April of this year.
Scapa Group, based in Ashton-under-Lyne, which was listed on the London Stock Exchange’s AIM, specializes in wound care, with sales operations in North America, Europe and Asia.
SWM is a global performance materials company, which manufactures films, netting and engineered papers – serving the markets from medical to tobacco to interior design.
A statement signed by Scapa’s board of directors said: âThe execution of our strategy depends on our people and our entrepreneurial culture.
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âThis is what allowed us to adapt to the challenges and changes we have had to face during this difficult year as we faced the impact of the global Covid-19 pandemic.
âEarlier this year, as the global pandemic was declared, the group took decisive steps to strengthen its balance sheet, including securing an additional Â£ 15million over 12-month facility with the existing banking syndicate, a Â£ 32.6million gross equity investment and worked with the UK Pensions Administrator to secure agreement to defer the semi-annual payment of the UK Retirement Capital Reserve.
âAs a designated essential business, the group has been able to maintain operations throughout the pandemic and has supported our customers through the Herculean effort of our colleagues around the world.
âThese rapid measures that were taken at the start of the pandemic have helped to mitigate the effects on the group’s profitability and cash generation, as well as to continue to serve our customers. “