StockMarketWire.com - Healthcare and industrial company Scapa swung to a first-half loss after it lost a large contract with ConvaTec.

Pre-tax losses for the six months through September amounted to £1.0m, compared to a profit of £9.7m on-year.

Revenue rose 14% to £160.8m but trading profit fell 17% to £14.2m.

Scapa said it was successful in its motion to dismiss ConvaTec's claim filed in May 2019, in New Jersey federal Court.

The company had also filed a claim against ConvaTec in Connecticut for damages in excess of $83m.

In line with last year, Scapa did not declare an interim dividend but said it intended to maintain its progressive dividend policy.

'We are pleased to report a resilient financial result in the first half of the year, despite the significant impact of the loss of the ConvaTec contract,' chief executive Heejae Chae said.

'We have delivered strong revenue growth and made good progress on our operational footprint plans for integrating and streamlining the business.'

'We anticipate that the second half of the year will benefit from new products and technology transfers from new and existing customers.'

'In the medium-term, we expect our operating leverage to unwind as we realise the value from our strongest-ever pipeline.'

'Whilst the macro environment remains challenging in some of the markets in which we operate, the board remains confident of achieving its full year expectations.'





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