Annual Report and Accounts 2012 - Scapa

More documents

Recommendations

Info

Contents Overview Contents – Highlights – Chairman’s Statement 1 Business Review 2-15 Industrial 4 Healthcare 6 Electronics 8 Health & Safety 12 Principal Risks and Uncertainties 14 Governance 16-33 Corporate and Social Responsibility 16 Board of Directors 18 Leadership Team 19 Report of the Directors 20 Directors’ Remuneration Report 23 Corporate Governance 29 Financial Statements 34-86 Statement of Directors’ Responsibilities 34 Independent Auditor’s Report 35 Consolidated Income Statement 36 Consolidated Statement of Comprehensive Income 36 Consolidated Balance Sheet 37 Consolidated Statement of Changes in Equity 38 Consolidated Cash Flow Statement 39 Group Accounting Policies 40 Notes on the Accounts 47 Five Year Summaries 74 Parent Company Financial Statements 75 Independent Auditor’s Report 76 Company Balance Sheet 77 Statement of Accounting Policies 78 Notes on the Accounts 80 Who we are As a global manufacturer of bonding materials and solutions, Scapa is at the forefront of adhesive technology for the Industrial, Healthcare and Electronics markets. What we do Through an application driven focus, we support our global OEMs, distributors and consumers in maximising their product performance and process efficiency. Performance Financial highlights – Revenue grew 1.7% to £195.6m (2011: £192.3m) – Trading profit* increased 33.8% to £10.7m (2011: £8.0m) – Profit before tax increased 72.1% to £10.5m (2011: £6.1m) – Trading margins improved progressively to 5.5% for the year (2011: 4.2%) – Basic earnings per share increased 87.5% to 4.5p (2011: 2.4p) Operational highlights – Industrial trading margins increased to 4.9% (2011: 3.0%) – Healthcare trading margins increased to 13.9% (2011: 12.7%) – Successful completion and integration of WEBTEC acquisition – New Healthcare leadership team appointed to deliver new strategy – Self-help strategy continues to deliver good growth in cash and profits – Investments made in emerging economies of Brazil and India – Strong balance sheet to support strategic investment Revenue £195.6m +1.7% Trading profit* £10.7m +33.8% Profit before tax £10.5m +72.1% Earnings per share 4.5p +87.5% * Operating profit before exceptional items and amortisation of intangible assets.
Chairman’s Statement A focus on sustainable profit Chairman’s Statement I am delighted to report another year of profit growth and progress for the Group. Our continued focus on higher quality revenues, operational efficiency, cost control and good cash management delivered strong operating profit and cash flow. Overview Against a backdrop of slowing economic growth and a turbulent macro-economic environment, during the fiscal year 2012 we continued to deliver on our strategy of margin improvement and cash generation through self-help measures. Whilst we are pleased with the progress, we believe that the opportunity for further improvement remains, and a number of new initiatives will be implemented during the current year. In addition to driving organic growth of profit and cash generation, we acquired WEBTEC Converting LLC (WEBTEC) in December 2011. WEBTEC is a leading contract manufacturer and full-service converter, printer and packager of adhesive-backed medical devices. WEBTEC’s capabilities combined with our material expertise enable us to provide turn-key solutions to the Healthcare market. The acquisition provides us with a strong platform for our Healthcare division, augments our management expertise and takes us further toward our goal of balancing our business portfolio across our three market divisions – Industrial, Healthcare and Electronics. Financial highlights Revenues grew 1.7% to £195.6m. Trading profit grew by a healthy 33.8% to £10.7m. Profit before tax increased 72.1% to £10.5m and basic earnings per share increased 87.5% to 4.5p, both including non-recurring items. Strong cash flow and efficient working capital management ensured that we ended the year with net cash of £7.0m (2011: £18.8m), a good result following the acquisition of WEBTEC for an initial cash consideration of £18.0m (US$28.8m). No dividend is proposed for the year. The future recommendation of dividends will remain under review as the Group continues to make progress towards sustainable profitability and cash generation. “I am delighted to report another year of profit growth and progress for the Group.” People As always, on behalf of the Board I would like to thank all of Scapa’s employees around the world for their energy, commitment, dedication and hard work over the last financial year. Our people are an invaluable asset of the Group and are core to the further improvement of our performance and the achievement of our goals. Board and Governance The Board understands that a commitment to the highest standards of corporate governance is key to managing our business effectively and maintaining investor confidence. The Board has a thorough understanding of the business, knows its senior people and creates a culture which is conducive to open debate on the key issues, at the right level and at the right time. Good governance adds value and reduces risk; therefore we look to sustain, continually develop and improve our governance arrangements. As in previous years, the Board carried out a self-assessment of its performance to ensure that our corporate governance arrangements meet the needs of the business and corporate governance best practice. The results of this exercise showed that our arrangements accord with best practice and that the Board’s mix of skills and experience meet the current needs of our business and will support the next phase of our development. Outlook The new financial year has commenced with our business performing in line with expectations. We continue to be mindful of the current macro-economic issues but we are well positioned to continue to execute the self-help agenda and to invest in repositioning the Group towards higher value added business. We look forward to making further progress in the new financial year. J A S Wallace Chairman Scapa Group plc Annual Report and Accounts 2012 1 Overview Business Review Governance Financial Statements
Page 1 and 2: Annual Report and Accounts 2012 Gro
Page 3: Sector split Electronics Healthcare
Page 7 and 8: “Our goal is to deliver sustainab
Page 9 and 10: Revenue £145.9m +0.2% 74.6% of Gro
Page 11 and 12: Revenue £39.5m +16.9% 20.2%of Grou
Page 13 and 14: Revenue £10.2m -20.9% 5.2% of Grou
Page 15 and 16: KPIs Return on sales (*1) 5.5% Trad
Page 17 and 18: Lost Time Accidents (LTAs) FY12 FY1
Page 19 and 20: We take the view that the policies
Page 21 and 22: Introduction At the heart of how Sc
Page 23 and 24: Leadership Team L-R: Ian Marchant,
Page 25 and 26: Scapa has a combination of unionise
Page 27 and 28: Directors’ Remuneration Report Th
Page 29 and 30: Other benefits Purpose Policy for e
Page 31 and 32: Directors’ interests As of 31 Mar
Page 33 and 34: Corporate Governance “ Good gover
Page 35 and 36: Internal control system In accordan
Page 37 and 38: Under its terms of reference, the A
Page 39 and 40: Independent Auditor’s Report to t
Page 41 and 42: Consolidated Balance Sheet As at 31
Page 43 and 44: Consolidated Cash Flow Statement Fo
Page 45 and 46: Consolidation The consolidated fina
Page 47 and 48: Property, plant and equipment (incl
Page 49 and 50: The liability recognised in the Bal
Page 51 and 52: Notes on the Accounts 1. Segmental
Page 53 and 54: 2. Segment assets and liabilities c
Page 55 and 56:
6. Key management compensation and
Page 57 and 58:
9. Taxation continued Movement in u
Page 59 and 60:
13. Goodwill Cost 1 April 34.2 45.8
Page 61 and 62:
16. Assets held for sale During the
Page 63 and 64:
22. Borrowings Amounts due within o
Page 65 and 66:
23. Derivative financial instrument
Page 67 and 68:
24. Provisions continued During the
Page 69 and 70:
25. Retirement benefit liabilities
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
27. Share options continued US Stoc
Page 77 and 78:
29. Commitments Capital commitments
Page 79 and 80:
Scapa Group plc Parent Company Fina
Page 81 and 82:
Company Balance Sheet As at 31 Marc
Page 83 and 84:
Foreign currencies Transactions in
Page 85 and 86:
4. Investments Shares in Group unde
Page 87 and 88:
10. Share capital Allotted, issued
Page 89 and 90:
12. Pension schemes continued Five
Page 91 and 92:
Designed by luminous.co.uk
show all

Annual Report and Accounts 2012 - Scapa

Create successful ePaper yourself

Delete template?

Save as template?