20645_Scapa_AR_160504

STRATEGIC REPORT
STRATEGIC PROGRESS DURING
THE YEAR
At the start of the last financial year
we identified a series of key goals and
priorities for the year.
> > Healthcare: Continue to build on our
successes and invest in developing
our proposition as the full turn-key
solution partner of choice for our
global healthcare customers. We
successfully integrated First Water Limited
which strengthened our innovation and
development capabilities. We leveraged
the newly acquired hydrogel technology to
develop new products with our existing
customers. First Water successfully
launched new products with global
consumer companies leveraging the
Scapa global platform. We are driving
innovations through the continued
development of our MEDIFIX Solutions
for the wearable market. We launched
Soft-Pro® Silicone Gel with perforation for
the wound care market and filed a patent
for our Flexpore products. We invested in
a Quality Management System to deliver
world class [pharma] quality standards.
We are now ISO [•] compliant across all
our healthcare sites. We passed all [•]
regulatory and customer audits during the
year. A measure of our success in turn-key
solutions is the increase of Scapa’s own
materials in the content of the finished
products. Another measure is the
deepening relationships with key global
customers. Our relationship with J&J
continues to strengthen as we have
launched another Partner Enabled
Development (PED) product during the
year. We also signed a six year extension
with Convatec ensuring our strategic
relationship with a world leading wound
therapeutic company.
> > Industrial: Increase ROCE through
optimising the asset base focus on
capital asset allocation by
consolidating around strategic
technology clusters aligned to
focused markets and customers.
Our strategy of optimising our asset base
is proving successful and is reflected in
the improved margin despite decline in
revenue. We have taken many actions
to improve the productivity of our asset
throughout the year. We consolidated
the two separate facilities in France which
was completed on time and on budget.
Beyond the efficiency and productivity
gains which the consolidation generated,
it also provides a platform to further
optimise our operational infrastructure.
We expanded the capacity and scope of
capabilities which enable us to consolidate
a substantial portion of the production
from our Swiss facility. During the year, we
announced and commenced the closure
of our Rorschach facility in Switzerland.
The project should yield meaningful
operational leverage and improved
profitability and is on track to complete
and deliver benefits in the second half of
the coming financial year. Whilst we are
well invested with capacity available to
grow, we continue to invest in new
equipment and capabilities that will further
OUR EXECUTIVE TEAM
FROM LEFT TO RIGHT
Sayoung Jung
Director of Strategy and Corporate
Development
Chris Carter
Chief Operating Officer
Kären Olson
Group President, Industrial
Graham Hardcastle
Group Finance Director
Rebecca Smith
Group General Counsel and
Company Secretary
Heejae Chae
Group Chief Executive
Joe Davin
Group President, Healthcare
Clare Douglas
Group HR Director
7
ANNUAL REPORT AND ACCOUNTS 2016 SCAPA GROUP PLC