Updates

Scapa - Receives bid approach

March 2021

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

The shares leapt to 228p after Scapa received a recommended cash offer worth 210p a share from Schweitzer-Mauduit, a leading performance materials company. The offer implies 13.8x enterprise value / EBITDA for the year ended March and is pitched at an 18.6% premium to the previous day’s close of 177p. That looks mean to us, particularly as Scapa’s healthcare side is starting to recover from a low base as the vaccine roll-out will encourage patients to return to hospitals for delayed procedures. Management and various funds speaking for c. 16% have pledged their support but that’s not enough to prevent a counter offer, given that the deal is structured as a scheme of arrangement and needs 75% suppor ...

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Hostelworld

De La Rue - New guidance well ahead of forecasts

Scapa - Revised bid at 215p voted through (May 2021)

Scapa - Third beat since August for industrial and medical tapes manufacturer (January 2021)

Scapa (December 2020)

Scapa - Revenues ahead of plan (October 2020)

Scapa (September 2020)

Scapa (July 2020)

Scapa (January 2020)

Scapa (February 2019)

Scapa - Another acquisition (November 2018)

Scapa - Another broker upgrade (August 2018)

Scapa (June 2018)

Scapa - Numis has three year target price of £8 (February 2018)

Scapa (December 2017)

Scapa (October 2017)

Scapa - Industrial tapes and healthcare group planning acquisition push (August 2017)

Scapa - Gain to date: 493% (June 2017)

Scapa - Gain to date: 380% (February 2017)

Scapa - Shares register new high of 304p (December 2016)

Scapa - Shares briefly hit high of 295p (August 2016)

Scapa - Shares hit new high of 252p (June 2016)

Scapa - Healthcare enjoys 20% profit growth (January 2016)

Scapa - Another upgrade sends shares over Â£2 (July 2015)

Scapa - Shares soar to over 170p (June 2015)

Scapa - Acquires First Water (April 2015)

Scapa - Industrial and medical tapes business forecast to grow eps 46% by 2017 (January 2015)

Scapa - N+1 Singer upgrades forecasts (July 2014)

Scapa - Healthcare side growing rapidly (February 2014)

Scapa - Medical tapes grew profits 53% (July 2013)

Scapa - New 5.1p eps forecast for 2014 (July 2012)

Scapa - Self-help measures drive another upgrade to forecasts (May 2012)

Scapa - Industrial tape firm expanding into higher margin medical markets (March 2012)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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