Scapa Group (AIM:SCPA) decent results but fully valued?
The global manufacturer of bonding solutions and adhesive components which has been a terrific recovery play over the past few years announced decent interim for the period ending 30 September 2015, although the materiality of adjustments makes a mockery of things.
The Group has recently been reorganised into two standalone business units, Healthcare and Industrial. Group revenue for the period increased 4.0% to £119.3m (2014: £114.7m) with trading profit before a host of excluded items (amortisation of intangible assets, exceptional items, and legacy pension costs and finance charges) up 17.6% to £10.0m. Trading margins increased to 8.4% (2014: 7.4%) but with all the exclusions, including exceptional costs of £4.3m, that’s surely relatively meaningless. The exceptional charge represents costs associated with the closure of a facility. Healthcare generated revenue of £43.4m and trading profit of £6.5m (Margin 15%) up 20.4%. Industrial generate…