Scapa Group PLC Board update and additional information (6006B)
10 Giugno 2019 - 8:00AM
UK Regulatory
TIDMSCPA
RNS Number : 6006B
Scapa Group PLC
10 June 2019
10 June 2019
LEI No. 213800QIPVTK5ES5UU36
Scapa Group plc ("the Company")
Board update and
additional information on potential financial implications of
contract termination
Scapa Group plc (AIM: SCPA) announces that further to the
announcement on 21 May 2019, Heejae Chae has agreed to retract his
intention to step down and will remain as Group Chief Executive of
the Company to execute against the current strategy.
Further to the announcement on 3 June 2019, Scapa continues to
prepare its response and pursue all appropriate rights and remedies
against ConvaTec Inc. (ConvaTec). The Company has taken steps to
reduce the estimated impact on revenues and trading profit in FY20.
Following a reduction in direct labour, but assuming no further
mitigating actions at this stage, the estimated exposure to revenue
and trading profit in FY20 could be cGBP28.0m and c.GBP13.0m,
respectively. The figure includes the impact on other facilities
which supply materials for ConvaTec products in Knoxville. The
Company will continue to assess further revenue opportunities as
well as reviewing its ongoing cost base.
The Company and Scapa Tapes North America LLC (together Scapa)
refute that ConvaTec has any legitimate grounds to terminate the
Master Supply Agreement (MSA) with Scapa Tapes North America LLC.
Scapa will vigorously challenge and defend its rights under the MSA
in its response to the New Jersey Action. Scapa is confident in
asserting its rights and pursuing appropriate remedies.
Larry Pentz, Chairman of Scapa, commented:
"The Board is delighted that Heejae has agreed to continue as
Group Chief Executive. The Board remains committed to its strategy
and believes it has the right capabilities and management to fully
deliver its growth priorities and we will not be distracted by the
recent claims published by ConvaTec, which we will robustly
contest."
Heejae Chae, Group Chief Executive of Scapa, added:
"I am pleased to have accepted the Board's invitation to remain
as Group Chief Executive. I am confident in the foundations of the
Company, which are strong. We have the right culture and excellent
people in place to deliver against our current strategy, which is
generating success. In particular, we have made significant strides
in expanding our healthcare business and we are well positioned to
take advantage of the many tech-transfer opportunities we are
seeing in the medtech market. I remain fully committed to executing
this strategy designed to create value for all stakeholders."
For further information:
Scapa Group plc
Heejae Chae - Group Chief Executive
Oskar Zahn - Chief Finance Officer 0161 301 7430
Numis Securities Limited
(Nominated Adviser and Joint Broker)
Richard Thomas/Mark Lander 020 7260 1000
FTI Consulting
(Media Relations)
Brett Pollard
Victoria Foster Mitchell 020 3727 1000
About Scapa Group plc
Scapa Group plc is a diversified Healthcare and Industrial
company focused on bringing best-in-class innovation, design and
manufacturing solutions to its customers.
Healthcare
Scapa Healthcare is the trusted strategic partner of choice for
the world's leading companies in Advanced Wound Care, Consumer
Wellness and Medical Device Fixation. We partner with the top
global MedTech companies to develop and manufacture innovative skin
friendly medical device fixation and topical solutions, from
inception through to market delivery, from our state-of-the-art
facilities.
For further information, please visit
www.scapahealthcare.com
Industrial
Scapa Industrial is a global supplier of bonding solutions and
manufacturer of adhesive-based products which offer meaningful
value in industrial applications due to their lightweight,
easy-to-apply properties. We are recognised for our unparalleled
range of products, including adhesive tapes, films and foams, and
we can engineer custom designs for even the most unique
applications.
For further information, please visit
www.scapaindustrial.com
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contact rns@lseg.com or visit www.rns.com.
END
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