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Here’s Why Scapa Group Share Price Surged 41% Today – 10% Annual Profit Growth

Simon Mugo trader
Updated 22 Mar 2021

OPEN DEMO TRADING ACCOUNT YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
Scapa products

Share of Scapa Group Plc (LON: SCPA) today surged 41% to trade at 129.7p after the company, which manufactures wound care equipment, announced that it was on track to beat its annual profit estimates by 10%.

The firm noted that revenues for its FY 2021 first quarter ended June 30 were much better than expected and that it was on track to beat analysts’ estimates of its annual profits by 10%.

In a statement released just before its annual general meeting the company said that: “Trading in both its health and industrial divisions has continued to improve into financial 2021 second-quarter to date.”

Scapa said it acted swiftly to implement structural costs changes across all business divisions to mitigate the impact of the coronavirus pandemic, which resulted in a significant drop in demand for its products.

Scapa Group share price

Tradingview chart of Scapa Group share price 07082020

Scapa’s net debt at the end of Q1 2021 was £18.4 million, which was a significant improvement to the £54.4 million net debt position recorded at the end of the fiscal year 2020.

Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading