scapa group plc annual report and accounts 2014
foundations
for growth 
scapa group plc  
annual report and accounts 2014 strategic report
01 chairman’s statement 
02 at a glance 
04 chief executive’s strategic review 
06 the scapa business model and strategy
08 our strategy in action
14 key performance indicators 
18 risk and risk management 
24 business review healthcare
26 business review industrial 
28 business review electronics 
29 finance director’s review 
32 sustainability report 
governance
37 chairman’s introduction to corporate governance 
38 board of directors and company secretary 
40 corporate governance 
46 report of the audit and risk committee 
50 report of the nominations committee 
52 statement from the remuneration committee chairman 
54 directors’ remuneration policy
60 directors’ annual remuneration report
65 directors’ report
financial statements
67 directors’ responsibilities
68 independent auditor’s report 
73 consolidated income statement 
73 consolidated statement of comprehensive income
7 4 consolidated balance sheet 
75 consolidated statement of changes in equity
76 consolidated cash flow statement 
77 group accounting policies 
84 notes on the accounts 
1 18 five year summaries
1 19 parent company financial statements
120 company balance sheet
121 statement of accounting policies
123 notes on the accounts
company information
131 company information
focused on 
innovation
who we are
we are a global manufacturer of bonding materials and 
solutions at the forefront of adhesive technology in the 
healthcare industrial and electronics markets
what we do
through applicationdriven focus we support our 
customers in solving problems to help maximise their 
product performance and process efficiency
how we create value
we aim to develop and grow mutually profitable 
partnerships with our customers by becoming their 
trusted supply chain provider
revenue
£2261m
trading profit
£155m
profit before tax
£112m
underlying earnings per share 
72
p
 operating profit before amortisation of intangible assets exceptional items and pension administration costs
 profit after tax adjusted for exceptional items amortisation of intangible assets pension administration costs noncash interest and the tax thereon
2014
2013
2012
£2261m
£2088m
£1956m
2014
2013
2012
£112m
£96m
£105m
2014
2013
2012
£155m
£137m
£107m
2014
2013
2012
72p
55p
48p as we continue to make important 
investments in building strategic 
partnerships with existing and new 
global customers and improving 
our product pipeline we are well 
positioned to continue to deliver 
further growth in 2014 and beyond 
the future success of scapa healthcare is 
dependent upon the group’s inherent ability to 
continue to offer new and existing technologies 
to our growing customer base the demands 
from our customers to develop next generation 
and innovative products are everincreasing 
ensuring a sustainable business for the future 
as a result of our continuing commitment to 
customer needs and the associated successes 
of our codevelopment and collaboration 
opportunities a solid foundation for business 
sustainability is tenable we expect all our 
customer focused opportunities to maintain 
a strong and continuous momentum for 
enhancing profitable growth in the short 
and long term profitability will continue 
to be achieved by identifying opportunities 
that will deliver maximum value to both 
scapa and the customer
making
healthcare
stronger
special feature strategically grow profitable revenue through a focus on rd special feature
what are the driving factors behind scapa’s  
growth in healthcare
growing customer need for existing and next generation fully converted 
sterilised and packaged medical devices has been one of the main 
factors behind the growth of scapa healthcare this growth has 
stemmed from scapa’s ability to focus on developing a pipeline of 
product innovations and working partnerships product development 
has focused around an array of different product types including 
customer driven new product developments npds market driven 
npds and innovation products next generation products to enhance 
the growth of scapa healthcare there has been a focus on products 
which have addressed both customer and market needs and trends  
as a result scapa healthcare has become a trusted outsourced partner 
to a large number of global healthcare customers this is principally  
due to scapa’s inhouse expertise and key competencies in technical 
knowhow coating converting packaging regulatory and quality 
furthermore our ability to project manage complex projects and 
products utilising our inhouse platforms of adhesives films and foams 
including our converting and packaging skills has been paramount to 
our success
how will the emerging trends affect scapa
the healthcare industry has seen a rapid rate of new product 
introduction in order to remain competitive each of the group’s 
business segments will continue to develop innovative products that 
satisfy customer needs and preferences or provide cost effectiveness 
with clinical benefits improvements or other advantages inhouse 
research and development is supplemented by work performed by 
academic institutions and other external global research organisations in 
europe america and asia scapa is in a unique position to be able to 
adapt and adjust accordingly to emerging trends associated with the 
growing healthcare market with the changing demographics and 
ageing population the propensity of human disease and infection is set 
to increase scapa is well positioned to support and provide solutions  
to our existing and new customer base as new trends arise
growth  
emerging 
trends in 
heal thcare special feature
“ as we continue to make important 
investments in building strategic 
partnerships with existing and new  
global customers and improving our 
product pipeline we are well positioned  
to continue to deliver further growth  
in 2014 and beyond” skin friendl y 
turnkey 
solutions
special feature
how has innovation helped scapa to succeed
scapa’s stage gate system and medical design control processes 
ensure that projects are well managed and delivered to expectations 
consequently risk to the business on innovation is significantly lower  
due to the processes involved with development programme selection 
utilising innovation approaches and a robust screening process have 
ensured that scapa will continue to identify and develop opportunities 
for customers that will provide them with a competitive advantage and 
product differentiation this process ensures that market dynamics and 
opportunities meet all customer and business requirements we are 
committed to creating value through our innovation programmes not 
just innovation in product development but in everything we do and 
everywhere we operate 
benefit to the customer
scapa is committed to both rapidly developing and enhancing 
healthcare solutions by working closely with customers and partners  
in particular scapa provides a highly customised and bespoke product 
development service to all customers for existing and next generation 
new product development we are continuously working very closely 
with our research programmes at a number of worldclass universities 
this ensures that both scapa and our customers remain at the forefront 
of science and medical device innovations costs for innovation remain 
well controlled as scapa has been successful in securing a number of 
government grants for development over the next three years these 
programmes will ensure that we reinforce our existing positions in the 
healthcare market and also significantly enhance our next generation 
innovation products we are committed to delivering solutions to  
our customers and ensuring that these deliverables enhance their 
current portfolio 
we aim to continually improve and expand our technology portfolio for 
our growing customer requirements as a result of our commitment to 
existing and new customers codevelopment and collaboration 
opportunities continue to grow we expect these opportunities to 
maintain strong momentum to enhance profitable growth scapa has  
a substantial track record of partnering with global customers with 
significant outcomes with scapa’s contract manufacturing capabilities 
and global research and development facilities we have become a 
trusted and reliable outsource partner
is scapa’s reputation opening new doors
scapa’s reputation in the healthcare arena is now being significantly 
recognised by our existing and new customers innovative new products 
are brought to market through highly focused research and development 
and there is a robust policy of protecting intellectual property our 
reputation and expertise has ensured that new product developments 
are delivered rapidly to the highest quality and in compliance with 
regional market regulatory requirements due to the demands in a highly 
competitive and regulated field it is important to our customers that any 
products developed will minimise regulatory hurdles when bringing them 
to the market
design project 
management 
performance 
materials
skin friendly 
adhesives
film extrusion coatings “ the healthcare industry has seen a rapid rate  
of new product introduction in order to remain 
competitive each of the group’s business segments 
will continue to develop innovative products that 
satisfy customer needs and preferences or provide 
cost effectiveness with clinical benefits improvements 
or other advantages”
special feature
converting  
assembly 
printing  
packaging 
sterilisation
logistics  
service research and development investment
research and development activities represent a significant and 
fundamental part of scapa’s business these expenditures relate to  
the processes of discovering developing and testing new products 
improving existing products as well as ensuring product efficacy quality 
and regulatory compliance prior to launch the group remains 
committed to investing in research and development with the aim of 
delivering high quality and innovative products our results have 
demonstrated significant profitable revenue from key products and 
successful new product launches scapa continues to make important 
investments building strategic partnerships and advancing our pipeline 
positioning us well for delivering sustainable profitable growth
what will be the next generation of  
production innovations
scapa is continuously investing in research and development to  
ensure that the next generation products for our customers enhance 
their innovation and growth we are focused on developing and 
delivering technologies that will provide our healthcare customers  
with costeffective worldclass solutions that meet their product  
and clinical needs we are committed to developing and investing  
in new products for our existing and new global customers that  
will have an impact in the healthcare arena 
new products
we intend to focus our research and development investments in 
healthcare that we believe will offer the greatest opportunity for growth 
and profitability the development of new products is key in supporting 
our growing customer base and their demands sustainability of scapa’s 
and our customers’ pipelines is of paramount importance to the growth 
and sustainability of scapa healthcare 
scapa manages a large portfolio of short and longterm development 
projects designed to meet the continual needs of customers and will 
drive growth opportunities for the business current developments 
include next generation adhesives actives antimicrobial adhesives 
atraumatic skin and wound contact layers and antibiofilm agents which 
will provide synergy with our existing product portfolio the next 
generation innovations are all linked into our four strategic areas of 
advanced woundcare including ostomy consumer wellness medical 
devices and transdermal delivery we are continuously evaluating and 
developing new technologies in areas where we have technological or 
marketing expertise the acquisition of new technologies will ensure that 
new products can be delivered to the markets more quickly this year 
we launched three new validated softpro
®
 silicones and a new 
antimicrobial polyurethane adhesive patent pending furthermore we 
are expanding our capabilities for customised solutions as well as new 
product launches in the coming years we intend to continue to invest  
in research and development and focus our internal and external 
investments in fields that we believe will offer the greatest potential  
for near and also longterm profitable and sustainable growth 
focused on 
innovation 
and product 
development
special feature “ scapa’s stage gate system and medical  
design control processes ensure that projects 
are well managed and delivered to expectations 
consequently risk to the business on innovation  
is significantly lower due to the processes involved  
with development programme selection”
special feature find out more 
 wwwscapacomenhealthcare chairman’s statement 
progress and momentum in 
sustained profitable growth 
in recent years we have seen the steady transformation of scapa into  
a company capable of generating sustainable growth supported by a clear 
strategic direction and business model
this year has seen the group achieve growth across all our markets with the 
quality of the performance improving as the group continues to diversify its 
portfolio both from a market and geographical perspective underpinning the 
foundations for the future
healthcare has made a significant contribution to the growth of scapa  
over the last few years as we consolidate strategic partnerships with our 
customers and develop and launch new products and programmes to 
support their growth we have created a business that now accounts for  
over 30 of group revenue and has delivered growth of over 20 this 
financial year 
the investments in operational capability research and development and 
customer facing management have created a business with higher quality 
revenue streams better visibility of revenue and an organisation structure that 
is focused on performance and delivery 
the industrial business continues to evolve with improving clarity and focus  
as we make progress in our chosen markets while the industrial business  
in north america continued to grow ahead of the macro economic climate 
the european business remained flat as a whole the industrial business 
delivered moderate growth in revenue and improved its margin as the quality 
of the business further developed we have clear direction with well defined 
markets to which we are allocating our resources to leverage our capabilities 
our strategic direction and objective is to further develop relationships with 
our customers creating partnerships by anticipating their needs and providing 
solutions with a view to obtaining a greater share of their overall spend
electronics is a market that remains attractive we need further critical mass 
to access the wider opportunities and earlier in the year were unable to 
conclude the acquisition we sought under terms that we felt were acceptable
this year has seen a number of organisational developments that have 
helped to further reshape the group of particular note we reorganised our 
resources centralising back office functions in europe to improve operational 
effectiveness and value we merged the three uk legacy pension schemes 
significantly reducing administration costs we successfully renegotiated and 
increased our banking facilities as well as giving additional attention to tax 
planning to ensure we pay the appropriate amount of tax and hold the correct 
tax provisions
this year’s financial results partially reflect the steps being taken to deliver 
sustainable financial performance where material the costs associated with 
these oneoff initiatives have been shown separately as exceptional and are 
described in detail later in this report revenue for the group increased 83 
to £226 1m 2013 £2088m with trading profit excluding oneoff charges 
improving 13 1 to £155m 2013 £137m delivering a strong improvement 
on last year’s record results underlying earnings per share increased 309 
to 7 2p 2013 55p and basic loss per share was 46p 2013 08p earnings 
impacted by the writeoff of deferred taxation strong cash flow and strong 
working capital management ensured that we ended the year with net cash 
of £54m 2013 £22m
following another year of improved performance the board has decided  
to recommend an increase in the final dividend to 10p 2013 05p subject  
to approval of shareholders at the forthcoming annual general meeting the 
dividend will be paid on 22 august 2014 to shareholders on the register on  
25 july 2014
our people are a key element of our formula for success and we continue to 
train and upgrade to meet our future plans i would like to thank them for their 
continued dedication
good corporate governance is central to the effective management of the 
business and maintaining the confidence of our shareholders the corporate 
governance section on page 40 of this report shows details of our compliance 
with the uk corporate governance code 
the company is exploring plans to move its listing to the premium listing  
of the london stock exchange
we expect to make further progress in the year ahead and have positioned 
the group to grow organically and by suitable acquisitions
j a s wallace
chairman
1
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information focused on global  
scale and operations
at a glance
growing markets 
by 2050 16 of the world’s 
population will be aged over 65 
operational  
highlights 
sector 
more information
healthcare industrial
scapa healthcare is a leading global 
developer and manufacturer of innovative 
lifeenhancing healthcare technologies  
we offer skin friendly turnkey solutions  
to meet our customers’ needs
• maintained strong profitable growth
• improved market recognition for full solution capabilities
•  invested in increased capacity and moved a key site to 247
•  increased investment in dedicated healthcare quality function
• achieved profitable growth and continued margin 
improvement
• double digit growth in automotive and strong retail growth  
in europe
• new clear definition of segments where we have a 
competitive position
• focused effort on creating customer partnerships with  
major oems
 page 24
 
 page 26
scapa accommodates the diverse 
requirements of our market segments  
from construction to aerospace our  
global footprint delivers on our customers’ 
demands – we can build true partnerships 
by making technology accessible where  
the customer is located 
2
scapa group plc  
annual report and accounts 2014 electronics
 
 page 28
in our asian operations we have experience 
of engaging with electronics manufacturers  
in the development stages of a product 
our products are applicationspecific  
and incorporate functionalities beyond  
tape and bonding
• achieved revenue growth of 47
• trading loss reduced to 18
• successes in screen technology solutions with major 
customer wins
global footprint 
scapa has a truly global footprint  
from seoul to los angeles – we are 
awake 24 hours a day
revenue by sector
trading profit by sector
revenue by region
trading profit by region
strong rd 
rd centres of excellence located in  
the uk and south korea providing 
specific development support on the 
doorstep of our customers 
healthcare
industrial
electronics
£692m
£1457m
£112m
healthcare
industrial
electronics
£102m
£79m
£02m
europe
north america
asia
£1031m
£1105m
£125m
europe
north america
asia
£67m
£118m
£06m
3
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information chief executive’s strategic review 
creating value through 
sustainable profitable growth 
overview
the group delivered another strong performance in revenue and profit with 
growth and improved margin across all of our end markets healthcare 
continues to go from strength to strength growing 206 our strategy to build 
partnerships with customers by offering solutions rather than just products 
alone aligns with the current trends in the healthcare market to focus on core 
competence and outsource elements of the supply chain growth was driven 
by expanding our footprint with existing customers and acquisitions of new 
customer partnerships 
we believe that the same strategy and approach can be applied to segments 
of our industrial business the strategic engagement and focus on solution 
selling are yielding improvements particularly in automotive and cable where 
the pipeline of new opportunities continues to grow 
during the past four years we have built a solid financial foundation based  
on cash generation and profit improvement this benefits from a selfhelp 
agenda which continues to contribute to every decision within the group  
as we see further opportunities to improve our margin 
our performance in 201314
group revenue increased 83 to £226 1m healthcare returned a strong 
performance growing revenue by 206 we continue to improve engagement 
with our customers and have reaped the rewards this year we have invested for 
growth moving to 247 production at a key site following new product launches 
and increased demand for our customers’ products as we engage with our 
customers they are gaining more confidence in us as the supplier of choice and 
we are partnering with them in the development of new products and process 
improvements while building a pipeline of opportunities for future delivery
industrial revenue improved 36 to £1457m while the growth is modest  
we are developing a clearer definition of our industrial business and those 
markets where we hold a competitive position and where we see further 
opportunities for future expansion we are improving customer engagement 
and intimacy specifically within the oem sectors of automotive where we 
have seen double digit growth and cable where the pipeline continues to 
grow electronics revenue increased 47 to £1 12m as we continue to 
pursue the opportunities in this market
group trading profit increased 13 1 to £155m and margins also continued 
to improve to 69 in addition to the benefit of operating leverage we have 
continued to realise gains from our selfhelp strategy our value chain 
initiatives of spend optimisation through transparency with consolidation of 
our spend by leveraging the global footprint of our business have continued 
to deliver margin enhancement cash generation was in line with expectations 
and we ended the year net cash positive at £54m 
delivering against our goals and priorities
at the start of the last financial year we identified a series of key goals and 
priorities for the year
further diversify our business to sustain performance by creating a 
balanced portfolio we have continued to diversify our business away from 
a predominantly european based industrial business to one which is better 
balanced where healthcare and north america form a more significant part
strategically grow profitable revenue by developing new accounts 
while further penetrating our existing base our growth this year has 
been delivered by both improving access to our customer spend and gaining 
new accounts as we expand into other territories
make further earningsenhancing acquisitions during the year we 
engaged in negotiations to acquire tapex an electronics business based  
in south korea ultimately the negotiations were unsuccessful as we were 
unable to agree acceptable terms with the seller while the decision to step 
away from this acquisition was the right one acquisitions remain a part of  
our growth plan and our strategy remains intact
continue to improve our margins by maintaining the process  
of selfhelp and good cost control this year has seen a number of  
selfhelp initiatives generate savings improve our cash and strengthen our 
balance sheet we have seen our global supply chain initiatives deliver spend 
optimisation and we have centralised back office functions in europe continued 
to rationalise our property portfolio and merged our pension schemes
“scapa’s strategic priorities are about creating  
value for the group and delivering returns for our 
shareholders this year we have delivered on these 
priorities with another year of strong profitable growth”
4
scapa group plc  
annual report and accounts 2014 further improve the balance sheet for a secure sustained future  
we ended the year with net cash on the balance sheet of £54m and access 
to up to £40m of secured banking facilities with an uncommitted ‘accordion’ 
facility adding a further £20m we have completed our pension project 
significantly reducing cash outflow this year and into the future and we have 
leveraged our asset base and reduced working capital as a percentage of 
revenue ensuring we grow efficiently
2014 strategic goals and priorities
• healthcare continue to move up the value chain by expanding our 
offerings and capabilities further leverage our customer partnerships to 
increase their supply chain spend with scapa and develop new customer 
partnerships to further build the pipeline
• industrial 
– automotive and cable focus on developing strategic partnerships 
where we have critical mass and leverageable positions accelerating  
the shift from product to solution selling
– retail and distribution leverage our brands and market position to 
expand market share through expansion of both point of sales and 
product range continue to lower the cost to serve by leveraging 
technology and further focusing sales strategy
• acquisitions remain part of the group’s strategy and will help support 
growth through adding capabilities product offerings and services as well 
as geographies or channels to the current portfolio through organic and 
leadership team 
heejae chae is supported in the 
daytoday management of the 
group by a strong leadership team
from left to right standing
rebecca smith – group general counsel and 
company secretary
james neuling – managing director industrial
joe davin – group president healthcare
chris carter – group operations director
from left to right sitting
clare douglas – group hr director
sayoung jung – director of strategy and 
corporate development
heejae chae – group chief executive
paul edwards – group finance director
a full biography of the leadership team members 
can be found on our website
  wwwscapacomen
boardofdirectorsandleadershipteam
appointments to commence june 2014
acquisitive growth we will look to meet changing customers’ requirements 
providing a one stop solution for our customers this will help us to integrate 
further into our customers’ supply chain and to develop deeper 
relationships and longterm customer partnerships
• continue to improve our margins by maintaining the process of selfhelp 
and good cost control
• culture instil a principled entrepreneurial culture to align 1200 people 
across 12 countries to achieve common objectives develop a culture  
that promotes autonomous entrepreneurial behaviour by following  
clearly defined principles 
outlook
over the past year we have continued to strengthen our business by 
successfully delivering against our strategic goals and priorities which have 
driven organic growth and improved business performance and shareholder 
value while we are currently early in the new financial year we expect the 
momentum to continue and the group remains well positioned to make 
further progress
h r chae
group chief executive
5
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information the scapa business model and strategy
our model is to create value 
through mutually profitable 
customer partnerships
our business model is designed to create value by delivering sustainable  
and profitable growth the customer is at the core of our model and we strive 
to develop and grow mutually profitable partnerships with our customers  
by becoming their trusted supply chain solution provider at scapa we 
understand that our customers look for us to help them solve a problem 
whether it is new and innovative materials process improvement supply 
chain simplification or simply ease of engagement 
customer partnerships
our customers approach us to solve a broader underlying problem more than 
just a need for a product usually our products make up a small part of the 
total solution for the customer’s problem we must move away from offering 
just a standalone product to understanding and defining their underlying 
problem and then we present the solution which can be product service 
support logistic or something else entirely
one stop solution to provide a one stop solution for our customers  
we look to meet changing customers’ requirements through acquisitions  
as well as organic development 
product development we recognise that that every customer’s problems 
are unique we have a broad portfolio of products and solutions accumulated 
over our 100 years that can address many requirements however we also 
have significant development capabilities to work with our customers to 
create tailormade solutions
supply chain our customers are global leaders who are looking for 
partners who can support them in fastchanging markets we have the 
expertise and agility to provide an effective and efficient solution to their 
everchanging supply chain we strive to become an extension of their 
operation and development to assure their success
global footprint with 18 locations across 12 countries we can support  
our global customers anywhere in the world as our customers grow and 
enter new emerging markets we are well positioned to support them
ease of engagement we strive to offer our customers seamless and 
consistent service anywhere in the world regardless of which of the  
18 locations across the world our customers are dealing with they should 
expect consistent service that works as an extension of their business  
we strive to provide transparency and information flows to best serve  
the customer
channelspartners we have an extensive global network of partners that 
we leverage to provide the most effective solution to our customers
responsible behaviour we conduct all affairs with integrity we strive  
for 10000 compliance with all laws and regulations which requires  
100 of employees fully complying 100 of the time © koch
scapa strategy
our strategy is to deliver profitable growth and create value by exceeding  
the expectations of our customers we will focus on six key segments of 
healthcare automotive cable retail distribution and electronics where  
we have critical mass and leverageable position our objective is to leverage 
the relationship with the customer to address a greater share of their spend 
the goal is to become trusted supply chain partners by providing solutions  
to their problems
achieving sustained value creation 
the group’s strategy and business model recognise the need to continue  
to develop our capabilities and products to create real sustainable and 
superior value for our customers shareholders and all other stakeholders 
within the business profitable growth is therefore the basis of sustained  
value creation 
profitable growth will continue to be delivered by producing products  
and providing services that our customers value more highly than the 
alternatives available and that exceed their expectations we will continue  
to focus where we have critical mass and a strong position these continue  
to be our core segments of healthcare industrial which includes the markets 
of automotive cable retail and distribution and electronics our objective is 
to become a trusted supply chain partner by providing innovative solutions  
to our customers
protecting the value we create
we seek to protect this value by ensuring that we operate within a culture  
of principled entrepreneurship where integrity and operating safely and with 
legal compliance is not negotiable we conduct this within a risk framework 
where key risks to the business are identified and measures are taken to 
manage and address these risks our risk management framework and  
the measures we take are identified and discussed on pages 18 to 23  
of this report
6
scapa group plc  
annual report and accounts 2014 operations
people and culture
acquisitions
customer partnerships
one stop
solution
product
development
supply
chain
channels
partners
responsible
behaviour
global
footprint
ease of 
engagement
value
creation
people and culture
our people are vital to the longterm success  
of the group and the 1200 people we employ 
across 18 locations in 12 countries are aligned  
to achieve the strategic objectives of the group 
we look to attract the best people and rely on 
their ability skills and aptitude to work with each 
other and our customers together to create value 
for all our stakeholders our people are motivated  
to work for a company that promotes and 
supports them through a culture of principled 
entrepreneurship which encourages them to 
develop and grow and also helps us to attract 
and retain the best talent
operations
the way we manufacture our products and 
deliver services to customers is fundamental  
to our success how we engage and collaborate 
with customers and our ability to develop strong 
relationships are and will continue to be crucial  
to driving growth and sustainable returns and 
impact our ability to create longterm value  
in a competitive market efficient and responsible 
manufacturing is critical to our economic and 
environmental performance and we seek to 
continually improve and optimise our operations 
to reduce costs minimise resources and reduce 
our impact on the environment by ensuring that 
we continue to invest and deploy our capital 
where the maximum return can be achieved 
acquisitions
acquisitions remain part of the group’s strategy 
and will help support growth through adding 
capabilities product offerings and services  
as well as geographies or channels to the current 
portfolio through organic and acquisitive growth 
we will look to meet changing customers’ 
requirements by providing a one stop solution  
for our customers this will help us to integrate 
further into our customers’ supply chain and 
develop deeper relationships and longterm 
customer partnerships 
7
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information our strategy in action
8
scapa group plc  
annual report and accounts 2014 benefit to the customer
the professional market for remodelling 
decorative surfacing has traditionally been 
built around ‘stripout and replace’ solutions 
this approach is intrusive and disruptive  
and in some industries is extremely costly  
for example in healthcare facilities
scapa industrial has developed a peel and stick product in 
conjunction with a worldleading producer of decorative surfacing 
products the new product provides a costeffective and simple 
solution to remodelling that reduces waste and intrusion and 
therefore significantly reduces costs
by working closely with the customer from the design stage scapa 
has helped produce a tailormade solution – and in doing so has 
developed a product that significantly reduces total cost while meeting 
our customer’s unique needs
develop a 
balanced 
product 
portfolio 
9
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information our strategy in action 
benefit to the customer
scapa puts customers at the centre of 
our business decisions we have a deep 
understanding of our markets and promote 
strong customer relationships we take  
the time to understand and address our 
customers’ needs delivering innovative 
solutions and putting their satisfaction first 
we aim to create a high quality customer experience from initial 
enquiry to after sales support and beyond
we operate a customer focus culture through our policies and training 
we constantly strive to make the customer experience better
we do this through
• effective global communication – our multiple channels of 
communication mean scapa never sleeps
• ease of use – educating our customers so they know how to get  
the best from our products and services
• building relationships – building rapport to ensure that our 
customers feel valued and their needs recognised thereby 
developing an attachment to our service
• an effective complaints process – dealing with problems or 
complaints promptly and making sure our customers know  
the outcome
we endeavour to make scapa a company to enjoy doing business with
10
scapa group plc  
annual report and accounts 2014 focused  
on putting  
customers  
first 
11
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information our strategy in action 
focused on 
rd and new 
product 
development 
12
scapa group plc
annual report and accounts 2014 benefit to the customer
scapa’s state of the art inhouse research and 
development facilities and capabilities mean we 
are able to offer custom innovations and a tailored 
service to suit the requirements of our partners 
through the design and development of products 
during the year several new key product and 
technology platforms were launched including  
a range of market leading skin friendly silicone 
and polyurethane adhesives brought into the 
scapa softpro
®
 range
13
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information key performance indicators 
our key performance indicators kpis which include 
financial and nonfinancial measures enable the 
board to monitor performance
they have been selected as being important  
to the success of the group in delivering its  
strategic objectives
key performance indicators 
measuring our progress 
lost time injury frequency rate 
18
definition 
the number of lost time accidents which occurred in the year across all 
european and north american sites per 200000 hours worked
commentary
we maintain that zero accidentsincidents is the ultimate goal in environmental 
health  safety ehs excellence and we will continue to strive for this in both 
lost time accidents and lost days as a manufacturing business a significant 
proportion of our employees work in production this measure indicates the 
group performance in reducing accidents and improving health and safety  
for our employees our knoxville site has been fully integrated into the 
statistics during 201314 as the site had not previously reported accidents  
in a consistent manner their inclusion has increased the current year kpi
why we measure
protecting our people and acting responsibly is a must
2014
2013
2012
18
13
14
revenue growth 
83
definition 
revenue growth measures the change in revenue achieved against prior year
commentary
revenue growth is monitored at both consistent and actual exchange rates 
see also segmental reporting as a measure of the growth of the group  
the metric used by the group is actual exchange rates as shown above
why we measure
track the relative performance of our growth
2014
2013
2012
83
67
17
14
scapa group plc  
annual report and accounts 2014 return on sales 
69
definition 
return on sales is trading profit as a percentage of revenue
commentary
return on sales is used to measure the underlying profitability of our 
operations and monitor the improvement against previous years
why we measure
assess whether growth is sustainable and profitable
2014
2013
2012
69
66
55
underlying return on capital employed roce
278
definition 
roce is defined as the underlying trading profit divided by the capital 
employed equity plus longterm debt
commentary
by delivering our strategy it is important to increase shareholder value 
underlying roce is used together with the profit measures to monitor  
the efficient use of group assets
why we measure
monitor value created from investments
2014
2013
2012
278
181
132
underlying cash flow from operations 
£101m
definition 
underlying cash flow is calculated using the cash from operations and 
adjusting for exceptional items
commentary
generating sufficient levels of cash to ensure that the group is able  
to pursue its strategic goals underlying cash flow is an indicator of the 
group’s efficiency in generating cash from the trading profits of the business
why we measure
track the ongoing availability of cash for investment back into the group
2014
2013
2012
£101m
£130m
£107m
underlying earnings per share 
72
p
definition 
earnings per share eps is calculated using the weighted average number  
of shares in issue and the profit for the year adjusted for exceptional items 
amortisation charges and pension finance and administration costs and the 
tax thereon
commentary
by delivering our strategy we will create value and increase profits underlying 
eps is the measure used by the board to assess the overall profitability of 
the group
why we measure
track value generation for the group’s shareholders
2014
2013
2012
72p
55p
48p
15
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information key performance indicators continued
capacity utilisation 
612
definition 
hours booked to production as a percentage of total possible based on 
running 24 hours a day 5 days a week
commentary
managing capacity allows us to be responsive to customer needs by 
balancing cost efficiency and flexibility of production we can simplify 
engagement with our customers by offering a balanced portfolio of 
available capacity across the globe
why we measure
to ensure that a balance is struck between cost efficiency and  
flexible production
2014
2013
2012
612
548
560
customer satisfaction per order 
977 
definition 
customer satisfaction measured by the percentage of the orders during 
the year that do not lead to a complaint
commentary
the number of complaints is an indicator of customer satisfaction
why we measure
track the performance in customer relationships
2014
2013
2012
977
975
975
service performance 
843
definition 
service performance and ease of engagement measured as the number of 
times the requested delivery date is met as a percentage of the total orders
commentary
to build partnerships and ease engagement it is essential to meet customer 
needs and requests 
why we measure
measure service provided to our channelspartners
2014
2013
843
859
capital expenditure 
£49m
definition 
capital expenditure in the year on property plant and equipment and 
excluding acquisitions
commentary
to enable the group to continue to grow and improve customer satisfaction 
scapa invests in maintaining and improving our existing plants and facilities 
capital expenditure is an indicator of investment in production capacity and 
development in 201314 the group’s capital expenditure was £49m which 
represented 942 of the depreciation 201213 808
why we measure
investment is vital to maintain our position and create future value
2014
2013
2012
£49m
£42m
£26m
16
scapa group plc  
annual report and accounts 2014 market and geographical diversification 
644
definition 
the proportion of the biggest customer location by geography as  
a percentage of total revenue
commentary
an indicator for diversifying our portfolio and reducing the relative exposure 
to one segment or geographic region
why we measure
to track our progress to a diversified sustainable portfolio
2014
2013
2012
644
674
746
493
435
465
■ ■ segment concentration ratio    ■ ■ geographic concentration ratio
17
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information monitor
identify
assess
address
corporate governance 
risk 
management 
process
identify 
risks
identify 
inherent risks 
likelihood x 
impact
assess the 
suitability and 
effectiveness of 
existing controls
score mitigated 
risks likelihood x 
impact
assign executive 
level sponsor 
develop 
action plans treat 
transfer tolerate 
terminate
monitor delivery 
of action plans 
and risk universe 
risk and risk management 
effective management of risks  
is essential to sustainable 
shareholder value
risk management
risk is an inherent part of doing business a successful risk management 
process balances risk and reward and is underpinned by sound judgement  
of their impact and likelihood the group board has overall responsibility for 
ensuring that scapa has an effective risk management framework which is 
aligned to our objectives 
the leadership team audit and risk committee and board review risks 
which could affect the group throughout the year risk and issue tracking 
systems are reviewed by our group risk  assurance team on a regular basis 
to ensure that the framework is in line with good practice in risk management 
and that agreed mitigation plans are being adhered to
we take the view that the policies procedures and monitoring systems that 
are in place are sufficient to effectively manage the risks faced by our business 
scapa’s approach to risk management
scapa’s risk management model is summarised in the diagram below
risk identification
risks exist within all areas of our business and it is important for us to identify 
and understand the degree to which their impact and likelihood of occurrence 
will affect the delivery of our key objectives
the recording of risks at scapa is achieved through our risk management 
model their identification is achieved through daytoday working practices 
including horizon scanning for legislative changes professional body alerts 
strategic planning operational reviews accident and incident reporting 
project governance procedures and independent systems audits
18
scapa group plc  
annual report and accounts 2014 in addition to ongoing risk identification the group’s risk universe is  
reviewed on an annual basis this exercise relies on risk intelligence being 
gathered from
• top down – through participation from the leadership team senior 
management and departmental experts including quality health  safety 
supply chain and research  development and giving consideration to 
the group’s strategy related objectives and any barriers to the achievement 
of these objectives
• bottom up – by engaging with our people listening to their views and 
recognising their contribution eg through schemes like ‘ideas that stick’ 
in addition we have a robust and effective whistleblowing procedure  
to highlight issues such as potential wrongdoing or risks that are not  
being managed
in determining the relative importance of risks in our risk universe we use  
a scoring mechanism to identify the likelihood of a risk crystallising and  
the impact this would have on the achievement of our strategic objectives 
assuming that no controls are in place inherent risk score
assessment
after identifying scapa’s inherent risk exposure we assess the suitability and 
effectiveness of existing controls and mitigating factors to ascertain the group’s 
net exposure mitigated risk score
this process includes mapping the sources and reliability of assurances over 
the effectiveness of controls provided to the leadership team audit and risk 
committee and board
addressing risks
an assessment of whether additional actions are required to reduce our 
exposure to risk
• treat – develop an action plan to implement additional controls or provide 
additional assurance over the adequacy and effectiveness of existing controls
• transfer – use third party expertise to mitigate against risk
•  tolerate – determine that the risk is within appetite when compared with 
the cost and resources required to reduce the risk
• terminate – exit the activity
monitoring and reporting
the process used by the audit and risk committee to review the 
effectiveness of risk management includes
•  sixmonthly review of the group’s risk profile to assess potential risk areas 
and progress against action plans
•  review of internal and external audit plans to minimise duplication of 
assurance provision
•  quarterly review of the implementation of internal audit recommendations
• sixmonthly review of the status of management actions associated with 
the issues
internal control
the group’s approach to internal control is based on the 2013 coso internal 
control – integrated framework
internal control is an ongoing process which is engrained in scapa’s activities 
and operations the aim of our internal control framework is to provide 
reasonable assurance to the board over the following areas
• the effectiveness and efficiency of operations
• the reliability of financial reporting
• compliance with relevant laws and regulations
scapa’s internal control framework consists of the following key components
control environment – the ‘tone at the top’ of scapa and the foundation 
upon which all other components of the framework rest we have tried  
to capture the attributes integrity values and competencies that scapa 
employees display within our code of conduct
risk assessment – our awareness of the risks we face and the actions  
we take to address and mitigate the risks identified 
control activities – the policies and procedures that help ensure that 
actions and directives required by management are carried out 
information and communication – the ability for scapa’s people to 
capture and exchange the information needed to conduct manage and 
control our operations employees’ understanding of their own role in the 
internal control framework 
monitoring activities – continuous review and improvement where 
necessary to allow the system to react dynamically and change as needed
site based teams operate against mandated minimum control standards 
which are issued by the group finance director annual assessments of 
compliance are completed by site teams as part of a controls selfassessment 
process introduced during 201213 each site team is subject to regular 
internal audit with the objective of assessing the extent of compliance with 
these standards and to assess the accuracy of the controls selfassessment
financial reporting follows generally accepted accounting practice in all  
areas central review and approval procedures are in place in respect of 
major areas of risk such as acquisitions and disposals major contracts 
capital expenditure litigation treasury management taxation and 
environmental issues compliance with legislation is closely monitored and 
reviewed regularly to ensure that any new legislation is taken into account 
including compliance with environmental legislation high standards and 
defined targets are set for safety health and environmental performance
19
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information  
 
  
  
 
 
 ■ level of risk   ■ level of assurance
 
internal audit 
third party assurance 
board 
audit and risk committee
leadership t eam
•
•
•
daytoday operations 
policies embedded  and enforced by line 
management structure 
policy framework 
code of conduct 
strict schemes of delegated authority 
1st line
oversight 
• human resources group finance  
globalquality  group legal services  
information systems  technology  
global supply chain 
2nd line 
external audit 
independent assurance 
•
•
•
whistleblowing 
3rd line 
risk and risk management continued
risk and control reporting structure
our internal control structures are designed to provide assurance that the 
group is on track in delivering against its strategic objectives
scapa has a clear structure for ensuring that accurate and reliable information 
on the adequacy and effectiveness of internal controls is presented to the 
leadership team audit and risk committee and board 
we operate ‘three lines of defence’
• first line – established and embedded policies and procedures
• second line – direction and policy set at group level to enforce 
consistency oversight functions sit at group level
• third line – independent challenge and assurance
20
scapa group plc  
annual report and accounts 2014 principal risks and uncertainties
the table below outlines the principal risks and uncertainties which the group faces together with relevant key controls and mitigating factors the list does  
not constitute a list of all risks faced by the group and are not presented in priority order
note potential litigation due to claims arising from alleged exposure to asbestos containing products was included amongst the group’s principal risks  
in 201 112 and 201213 this has been removed following the disposal of scapa holdings georgia inc and its subsidiary in april 2013
risk
accountable 
executive key controls and mitigating factors
risk 
movement
strategic
business strategy
the board develops the wrong 
business strategy or fails to implement 
its strategy effectively 
impact
negative impact on longterm  
growth prospects
heejae chae 
group chief 
executive 
• clear strategy in place which is reviewed by the board on a  
regular basis
• progress against the strategy is monitored by senior management 
and the board on an ongoing basis
• risks relating to the achievement of the group’s strategy are 
reviewed regularly by the audit and risk committee and the board
acquisitions and disposals
poor decision making on 
organisational restructuring
impact
adversely affects the group’s results 
weakening shareholder value 
heejae chae 
group chief 
executive 
• significant internal and external due diligence processes
• acquisitions and disposals approved by the board
• monitoring of business portfolio and structure at senior management 
and board level
• integration planning for acquisitions across finance operations  
hr and commercial
financial
financial and treasury
unavailability and cost of funding and 
foreign exchange rates
impact
the company does not have access 
to sufficient funds to permit trading as 
a going concern
paul edwards 
group finance 
director
• new 45year facility entered into during the year offering £40m of 
additional funding with an additional £20m accordion
• all treasury policies are approved at board level
• committed facility providing sufficient headroom and capability
• the group uses simple products to hedge exposure with no 
speculative currency transactions
pensions
liabilities increase due to increasing 
life expectancy inflation poor 
performance in investments 
compounded by fluctuations 
in the discount rate
impact
the pension liabilities and associated 
cash requirements have a material 
adverse impact on the group’s profits 
and cash flows
paul edwards 
group finance 
director
• no material final salary pension schemes are open at the group
• all uk schemes now closed to new members and future accruals
• active and ongoing liability management programme including 
longterm funding agreements in place
• uk schemes merged in the year to facilitate cost reduction and 
further liability management
 risk remains the same
 risk increased
 risk decreased
21
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information risk and risk management continued
risk
accountable 
executive key controls and mitigating factors
risk 
movement
market
customers
overreliance on specific markets or 
customers
impact
places pressure on pricing margins 
and profitability
heejae chae 
group chief 
executive
• diverse range of customers with no specific weight towards  
one customer
• our business strategy is tailored to reduce reliance on one  
particular market
• winning new longterm contracts in healthcare helps spread risk  
and encourage growth
• credit limits set based on group policy with limits monitored 
regularly and customers put on ‘stop’ as appropriate 
• credit insurance for worldwide turnover of north america and europe 
subject to policy limits and excesses
operations
raw material pricing
excessively high raw materials prices
impact
reduced competitiveness as a result 
of reducing margins and profitability
chris carter 
group operations 
director
• global supply chain function in place with clear cost reduction targets
• commodities prices are reviewed on a monthly basis by the supply 
chain team
• contracts with suppliers are being renegotiated to further reduce  
our exposure to price changes
• formula based on openbook costing
• dual sourcing incorporating regional alternatives
• material substitution programme
human resources
we are unable to attract and retain the 
right people to sustain and grow our 
business
impact
• inability to achieve our business 
objectives of sustainable growth
• loss of skills knowledge  
and experience
clare douglas 
group hr director
• global performance management system in place for the top  
350 roles globally
• performance related incentive schemes are in place across  
the business 
• global reward compensation and benefits manager recruited with 
specific focus on global reward and incentive programmes linked to 
overall business growth strategy
• rollout of talent and succession programme for top 300 roles globally
22
scapa group plc  
annual report and accounts 2014 risk
accountable 
executive key controls and mitigating factors
risk 
movement
ict systems and 
infrastructure
ict systems and infrastructure  
failure andor interruption
impact
significant disruption to  
direct manufacturing and  
support processes
paul edwards 
group finance 
director
• group and site based business continuity and disaster recovery 
processes in place
• annual test of disaster recovery for core systems
• multisite backup of electronic data
• fallover and standby solutions built into system architecture for core 
systems providing additional resilience 
• security and segregation built into system architecture for 
ecommerce systems to ensure minimum exposure from 
transactions 
• we have implemented a rigorous it governance model covering  
it service management and it portfolio management in line with 
industry best practice to provide enhanced assurance for both  
our existing it services and the delivery of new solutions
 
compliance
product quality
products are not up to the required 
quality and health and safety 
standards 
impact
poor financial performance due to 
customer returns product liability 
claims ultimately affecting customer 
trust in scapa as a supplier 
joe davin 
group president 
healthcare
chris carter 
group operations 
director
• third party international quality systems accreditation
• industrial sites working towards compliance with isots 16949 an 
international standard for quality management systems tailored for 
use by companies who design develop or produce parts for the 
automotive industry
• internal quality audit processes are in place with issue resolution tracking 
• known problems have been addressed with rigorous root cause 
analysis and corrective action to ensure that they do not reoccur
• customer quality requirements are clearly identified 
• inprocess and final product quality checks are performed  
to ensure compliance
• food and drug administration fda validated processes in place  
at inglewood and knoxville sites
health  safety
failure to ensure safe working 
practices 
impact
• significant injury or loss of life
• reputational damage associated 
with accidents and injuries resulting 
in customer disassociation with 
scapa
heejae chae 
group chief 
executive 
• lost time accident rate has reduced by 26 compared with four 
years ago but has increased by 38 compared with last year
• we continue to develop our policies and training programmes in line 
with our risk profile
• our safety management system is continually being developed 
added to and improved
• we conduct regular audits and work with external accredited 
agencies to standards such as iso 14001  18001 globally
• we actively use our risk mapping mechanisms to influence our ehs 
capital expenditure to proactively manage our risks 
 
 risk remains the same
 risk increased
 risk decreased
23
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information business snapshot 
highlights 
• maintained strong profitable growth
•  improved market recognition for full solution capabilities
•  invested in increased capacity and moved key site to 247
•  increased investment in dedicated healthcare quality function
revenue 
£692m
2013 £574m
trading profit 
£102m
2013 £84m
trading margin
147 
2013 146
strategic update 
• we continue to 
concentrate on the core 
strategic building blocks 
of advanced wound care 
medical devices 
consumer wellness  
and transdermal 
• we have increased our 
investment in specialised 
healthcare quality and 
assurance functions to 
ensure customer 
satisfaction and 
compliance 
 
• we continue to expand 
our product portfolio and 
service platforms while 
focusing on turnkey 
solutions
• we are building a pipeline 
of rd innovations and 
new customer 
development projects
business review
healthcare  
well positioned with  
leadingedge customers
market trends
there have been positive market trends in all segments in which scapa 
healthcare participates advanced wound care medical devices consumer 
wellness and transdermaldrug delivery we expect that these trends will 
continue to be positive given increased access to healthcare in north america 
europe and a number of other geographic markets promising new markets 
are also opening for our skin friendly turnkey solutions value proposition 
including mobile health where there is strong growth in wearable devices 
the outsourcing trend in the healthcare industry continues to help drive our 
growth as more healthcare market leaders are looking to form partnerships 
with manufacturing expertise driven by healthcare reform and the need to 
maintain margins this is especially true in higher value products where limited 
production can be obtained through partnerships with suppliers materially 
reducing the need for investment in infrastructure scapa has benefited from 
this trend through significant multiyear contracts with a number of global 
market leaders
consolidation within the market segments in which scapa operates has both 
expanded the markets for end products that scapa produces and opened 
partnerships with new market leaders this consolidation has also opened 
markets for smaller and new entrants with innovative technologies and  
the potential for rapid growth scapa has been able to start development 
projects with several of these emerging companies as they do not have the 
infrastructure and therefore require the specialised materials and manufacturing 
services provided within scapa’s skin friendly turnkey solution supply chain
overview
scapa has continued to promote the skin friendly turnkey value proposition 
and is gaining market recognition for its full solution capabilities it was recently 
recognised by an industry trade journal as one of the seven companies to 
know for medical device outsource manufacturing services the group has 
strengthened its global sales and distribution channel by investing in key 
geographic regions in north america and europe this focus has enabled 
scapa to fill its sales funnel and close turnkey opportunities aiding this effort is 
the implementation of a gotomarket plan for the consumer wellness market 
specifically addressing the needs of consumer healthcare companies and their 
customer base 
during the year scapa launched several key new products in its scapa 
softpro
®
 silicone gel adhesive platform and introduced a new skin friendly 
scapa softpro
®
 polyurethane gel adhesive that is both breathable and 
gamma sterilised while providing low trauma for sensitive skin scapa is 
believed to be the only provider of polyurethane gel adhesive technology  
to the healthcare market 
capacity improvement projects were completed in the knoxville facility to 
accommodate current projects and plan for future growth other operational 
activities include cost reduction initiatives and inventory management to 
reduce the level of inventories a separate healthcare quality assurance 
department was formed to ensure that scapa is able to meet the growing 
demands for quality and design control from its customers and meet fda 
and other regulatory guidelines 
24
scapa group plc  
annual report and accounts 2014 strategy
in fy1 4 scapa healthcare continued its focus on skin friendly t urnkey solutions 
expanding its product portfolio sales channel manufacturing capacity and 
quality systems a predominant strategy for scapa healthcare is a b2b 
partnership along with our full turnkey capabilities this has enabled scapa 
to build longterm trusted relationships with our key customers which have 
resulted in the signing of major longterm contracts our vertical integration 
and turnkey capabilities allow us to partner with our customers starting at the 
design phase and through the whole supply chain to logistics and distribution 
these solutions have broadened our service platform and strengthened the 
supply chain management reducing the risk of product development for our 
customers our global footprint provides our customers with dual source 
capabilities from a single supplier as we harmonise our capabilities across  
our manufacturing sites 
quality is at the forefront of everything we do it has enabled scapa to build 
trusted relationships with our customers and is the basis for our growth  
during the year we invested in a separate healthcare quality organisation  
with the goal of implementing a global quality system to meet the growing 
demands of our customers we continue to invest in our manufacturing 
infrastructure to meet healthcare standards and harmonise our systems
scapa healthcare’s innovation strategy is gaining traction building a  
pipeline of both research and development innovations and new customer 
development projects that will drive growth for the coming year and beyond 
focus has been placed on strengthening our medical adhesives platforms 
expanding the depth and breadth of product capabilities and applications
we continue to focus on four large market segments that provide optimal 
opportunities to support our skin friendly value proposition these markets 
are advanced wound care medical devices consumer wellness and 
transdermaldrug delivery each of these markets is showing strong growth 
and our focus is to partner with the industry leading companies within each 
segment where outsourcing is a main component of their manufacturing 
strategy we will continue to monitor the gaps in our value chain and invest  
to support our current customers and provide a foundation for future growth 
we will also continue to look into adjacent markets where it makes sense for 
scapa to invest 
performance 
healthcare had a very good year increasing revenue by 206 to £692m 
2013 £57 4m and profit by 214 to £102m 2013 £84m return on sales 
increased from 146 to 147 the investments in operational capability 
research and development and customer facing management have created  
a business with better visibility of revenue and an organisation structure that is 
focused on performance and delivery and is making a significant contribution 
to the group result and success
outlook
the outlook for scapa healthcare remains positive a dedicated healthcare 
management team is now fully in place with additions in the previous year to 
operations and marketing and the initiation this year of a dedicated healthcare 
quality organisation
we are enhancing our position in the medical marketplace the promotion  
of the skin friendly turnkey value proposition continues to gain market 
recognition growing our existing customer base and opening new markets 
recent longterm agreements with multiple customers provide a foundation 
for future growth we expect that the recent additions to the sales channel 
along with growth initiatives in key geographic markets and in the consumer 
wellness market will gain traction in the coming year a pipeline of 
development projects is in place with expected completion in the coming 
year and there are positive trends in outsourcing in the market segments  
in which we participate 
scapa healthcare’s innovation strategy is building a pipeline of research  
and development innovations focus has been placed on strengthening our 
medical adhesives platforms with product capabilities due out in late fy15 
this innovation strategy has enabled scapa healthcare to engage with our 
customers earlier in the design phase of product development underpinning 
longterm success following the recent capacity expansion in our knoxville 
site and the ongoing capacity improvements in our windsor and dunstable 
facilities we will be able to capitalise on the growth from current and  
new projects operational efficiency plans are in place within all of our 
manufacturing sites as we strive to remain competitive and deliver  
sustainable profitable growth 
product snapshot 
during the year scapa launched several new 
products in its scapa softpro
®
 silicone gel 
adhesive platform and introduced a new 
skin friendly scapa softpro
®
 polyurethane 
gel adhesive 
25
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information business snapshot 
highlights 
• achieved profitable growth and continued margin 
improvement
• double digit growth in automotive and strong retail growth  
in europe
• new clear definition of segments where we have a  
competitive position
• focused effort on creating customer partnerships with  
major oems
revenue
£1457 m
2013 £1407 m
trading profit 
£79m
2013 £72m
trading margin
54
2013 5 1 
strategic update 
• we work closely with  
the customer from the 
design stage to produce 
innovative customer 
solutions to benefit from 
their success in the 
market
• we continue to invest  
in dedicated strategic 
solution sales teams 
focused on each market 
segment 
 
 
• we focus on clearly 
defined markets where 
we have a leverageable 
position and critical mass
• we are building longterm 
customer partnerships to 
underpin future growth 
and pipeline
business review
industrial
market trends
the industrial business operates across a wide range of market segments 
and geographies our focus is on automotive cable retail and distribution 
where we have critical mass and leverageable positions 
global automotive industry production volume continues to improve 
increasing 4 to a record number of units in 2013 north american 
production increased 5 and while europe remains below historical levels  
it increased marginally by 1 in the year our core products are bonding 
solutions used in wiring harness for electrical distribution seat heating 
systems and assembly applications the trend in car design is positive for 
scapa as electronic content is increasing and seat heaters are becoming 
standard in cars the focus on fuel efficiency ease of application and 
performance is also driving the use of chemical bonding solutions in place  
of mechanical solutions 
our cable products are primarily used in high voltage submarine and fibre 
optic cables as a protective layer in the construction of the cables the cables 
are used in oil and gas platforms wind turbines fibre optic networks and 
infrastructure related projects the market has been significantly impacted 
negatively in recent years by the weak economic climate but we are beginning 
to see a steady recovery which is projected to continue
our retail business consists of two distinct segments construction products 
sold through retail channels in europe under the barnier
®
 brand and hockey 
tapes under the renfrew tape
®
 brand in north america the retail business is 
driven by consumer spending and construction activities both of which have 
been at a historic low in recent years we are seeing the levels stabilising but 
do not expect a significant improvement in the short term much of our effort 
has therefore been focused on gaining market share which has yielded very 
positive results for the segment
26
scapa group plc  
annual report and accounts 2014 overview
the industrial business continues to evolve with a new clarity and focus as  
we continue to make progress in our chosen markets during the year we 
identified as a key focus those segments where we have critical mass and 
leverageable position we formed segment based organisations to address 
the distinct requirements of each market and where appropriate we created  
a global crossfunctional team to ensure proper customer engagement and 
service we also recognise that the successful approach of strategic solution 
selling that has driven our healthcare business can be applied to certain 
segments of the industrial portfolio our automotive and cable customers  
are global leaders which gives us significant opportunity to grow not only 
alongside them but by increasing our share of their supply chain spend  
we are already seeing the benefits as we have achieved double digit growth 
in automotive and increased the pipeline of opportunities in cable the retail 
business continues to make good progress despite a very challenging 
environment our barnier
®
 brand grew by expanding its market share and 
product portfolio while most of the growth came from channel acquisition in 
germany we also saw growth in france where we launched a new product 
range focused on painters and decorators our focus in distribution has been 
to improve its margin through product portfolio management and lowering  
the cost to serve to improve our customers’ engagement experience and 
service we expanded our telemarketing organisation and rollout of the 
eportal dedicated to our distribution partners 
strategy
automotive – during fy14 our focus has been to maximise relationships 
with our current global customers our products are currently specified in a 
wide range of major automakers our challenge is to ensure that we maximise 
our market share by positioning ourselves to capture the orders regardless  
of geography today’s supply chain for automotive is fluid and global and 
requires us to stay close and constantly abreast of all developments  
during the year we formed a global automotive organisation aligned  
with our customers’ footprint to ensure that we maximise our opportunities  
we have also dedicated significant development resources to work on  
new projects and products to ensure that our products are specified  
in the next generation platforms 
cable – our cable business is focused on high voltage submarine and  
fibre optic cables which require high reliability and carry significant cost of 
failure as a result the business is concentrated among major global cable 
manufacturers our competitive landscape is equally concentrated amongst  
a small number of suppliers scapa has been a key supplier to the market  
as its history goes back to the turn of the 20th century however our market 
share does not reflect this heritage we believe that our strategic solution selling 
through a dedicated organisation will allow us to capture an improved share  
of the market while the sale cycle is relatively long due to the nature of the 
design and development programmes we are currently engaged with most 
of the major manufacturers working on the next projects in their pipeline 
during the year we have invested in development and marketing resources  
to service the cable market 
retail – the strategy for our retail segment is to continue to increase our 
market share through expansion into new geographies and expanding our 
product range into the painter and decorator market segments we will 
continue to leverage our barnier
®
 brand to gain market share and drive further 
expansion in germany by adding additional retail channels during the year 
we added additional sales resources to increase our channel network 
particularly in germany and the uk
distribution – given the diversity of markets and products that it covers the 
performance of distribution reflects the macro economic trends as such we 
are focused on maximising the profitability of the segment through product 
portfolio management and operational efficiency we are focused on lowering 
the cost to serve by leveraging technologies and telemarketing
performance
the industrial business continued to improve with revenue growth of 36  
to £1457m 2013 £1407m and trading profit growth of 97 to £7 9m  
2013 £7 2m improving the margin to 54 the performance was driven  
by the continued improvement of retail and double digit growth of automotive 
coupled with operational gearing and strong cost control north america 
continued to grow well supported by increased customer demand for our 
products in the automotive and distribution markets whereas europe showed 
modest growth albeit in a subdued market
outlook
prospects for continued growth remain positive supported by a customer 
focused strategy and markets that are showing signs of stability and 
improvement rising investment in oil and gas and energy markets is 
increasing activity in our cable business albeit the sales cycles are relatively 
long due to the nature of the design process and size of investment 
automotive and retail markets remain stable and the opportunity to further 
penetrate these markets remains 
product snapshot 
scapa polyflex
®
 pe film tape is highly effective  
in a wide variety of industrial applications from 
asbestos removal to boat repair masking and 
protection established as a market leader in  
north america the polyflex
®
 range is currently 
being introduced to the european market 
27
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information business snapshot 
highlights 
• achieved revenue growth of 47
• trading loss reduced to 18
• successes in screen technology solutions with major 
customer wins
revenue
£112m
2013 £107 m
trading loss 
£02m
2013 £03m
trading margin
18
2013 28
strategic update 
• focused efforts to  
partner more closely  
with our customers  
have delivered with the 
screen technology wins
• the south korean rd 
function remains a centre 
of excellence for scapa 
we have a dedicated and 
responsive team located 
within minutes of some  
of the world’s largest 
electronics manufacturers 
 
•  the oem account 
management team  
has been refreshed  
and reinvigorated  
and we have seen  
an improvement  
in the quality of our 
revenue pipeline 
• the electronics sector 
remains an area of high 
growth and high potential 
and forms part of our  
goal for a balanced and 
diversified portfolio
business review
electronics
market trends and overview
scapa’s product portfolio and global footprint continue to make us an  
ideal partner to the electronics industry we have made significant progress 
transitioning the business from a distribution and transactional model to  
an oem and knowledge based business which looks to improve business 
sustainability and predictability and drive profitable growth our customer  
base continues to develop as we extend our capabilities within the consumer 
electronics communications and home appliance markets the global market 
for consumer electronics continues to be driven by rising demand in an already 
high growth market aided by continued development and short life cycle of 
the products we have positioned ourselves to take advantage of  this trend 
as we look to partner with our customers to help solve their development 
and technological problems
strategy
we are maintaining our strategy of focusing on major oems building our 
expertise within our defined segments to improve our capabilities and 
knowledge the relationship with the customer is at the heart of everything  
we do and we look to expand the opportunities in line with their development 
and growth our ability to respond quickly to customer needs and develop 
products and solutions that solve their problems providing ongoing support 
and customer service will ensure that we deepen the relationship and obtain 
a greater share of their spend while we will continue to concentrate on the 
core markets of south korea and china we are also positioned to extend  
our reach to the electronics oems in taiwan and japan ensuring that we 
leverage the capabilities and global footprint of the group
outlook
consumer electronics remains one of the largest segments of the 
manufacturing industry and the growing convergence of information 
communication and entertainment continues to drive development and 
demand for new products and underpins the future opportunities for scapa 
nevertheless as we continue to develop we will evaluate further our progress 
against the potential that exists in the sector or elsewhere
28
scapa group plc  
annual report and accounts 2014 sustainable value creation
“our track record of consistently improving 
performance provides confidence in our ability  
to continue to create value through sustained 
profitable growth”
record revenue and profits
group revenue increased by 83 to £226 1m 2013 £2088m  
on a constant currency basis the growth was 8 1 2013 £2092m 
healthcare revenue was £692m 2013 £57 4m an increase of 206  
as the segment enjoyed strong sales growth on the back of successful 
customer product launches industrial revenue of £1457m 2013 £1407m  
is 36 ahead of the prior year and electronics experienced growth of 47 
with revenue of £1 12m 2013 £107m
trading profit increased by 13 1  to £155m 2013 £137m which was another 
record performance for the group trading profit margin improved to 69 
2013 66 currency translation had a minimal impact on trading profit
industrial contributed £7 9m 2013 £7 2m with an improving margin of 54 
2013 5 1 and healthcare contributed £102m 2013 £84m improving  
the margin to 147 2013 146 total group operating profit of £134m 
2013 £1 17m includes a net exceptional credit of £02m 2013 £1 1m 
pension administration costs of £08m 2013 £16m and intangible 
amortisation costs of £15m 2013 £15m 
net finance costs
net finance costs of £22m 2013 £2 1m comprise net cash interest payable 
of £06m 2013 £07m and notional interest of £16m 2013 £14m the net 
cash interest payable related to the committed uk facility that was refinanced 
and increased from £200m up to £400m during the year half of the group’s 
interest cost exposure risk is mitigated through an interest rate swap entered 
into in january 2012 the notional interest relates mainly to the defined benefit 
pension plans and the unwinding of the discount on deferred payments  
on acquisitions
taxation
the group’s tax charge of £17 9m 2013 £84m includes a £44m charge 
2013 £49m on trading activities a £18m charge 2013 £03m arising  
from a change in the uk corporation tax rate and exceptional tax charges of 
£1 17m 2013 £32m taxation on exceptional items is noncash related and 
includes £1 13m 2013 £nil relating to the derecognition of deferred taxation 
where utilisation is no longer foreseeable with certainty the basis  
of this exceptional write off is detailed below
the underlying effective rate excluding exceptional items and the change in rate 
of uk corporation tax has decreased to 295 2013 37 7 this underlying 
rate is higher than the uk standard rate of 23 mainly due to the group 
operating in territories which have a higher statutory tax rate than the uk  
the headline effective rate of tax for the group is 1598 2013 87 5 despite 
the high effective rate the group’s cash tax payment in the year was £27m 
2013 £26m or 18 1  of underlying profit before tax as the group continues 
to benefit from historic brought forward tax losses given the level of current 
performance and the increase in profitability over the last four years cash tax 
payments are expected to increase as brought forward losses are utilised
write off of deferred taxation
during the year the directors have deemed it appropriate to reassess the 
basis of recognising deferred tax in the uk deferred tax assets are recognised 
to the extent that it is probable that the amount can be utilised against future 
taxable income and in 2009 approximately £16m of deferred tax was 
recognised in the uk entities because of the structure at that time and the 
industrial focus of the group it was anticipated that these assets would be 
utilised over a reasonable period of time against future profits generated in  
the uk however since recognition there has been minimal utilisation of the 
deferred tax balance and a number of factors have recently emerged causing 
the directors to reassess the value 
this year has seen uk interest income reduce following the restructure of  
a number of intercompany loans and in addition a claim for double taxation 
relief has seen our uk tax losses increase looking forward the business will 
continue to rebalance its market and geographical exposure as it diversifies  
to have less reliance on europe and industrial markets to one where  
north america and asia and healthcare and electronics make up a larger 
component of the group’s profitability based on this reassessment we 
anticipated a longer utilisation period for the brought forward uk deferred  
tax assets and have therefore prudently reduced the value recognised at  
the balance sheet date
finance director’s review
29
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information the derecognition reduces the deferred tax balance and shortens the period 
over which the recognised assets are to be utilised the write off was £1 13m 
2013 £14m for the purposes of consistency we have also reviewed the 
deferred tax recognition criteria throughout the worldwide group this has 
resulted in an additional deferred tax write off of £08m 2013 £nil
acquisitions
in december 201 1 the group acquired the business and assets of webtec  
for an initial cash consideration of us288m £180m based on trading 
performance to december 2013 total additional consideration of us1 16m 
has been paid with us34m or £22m 2013 £nil released back to the  
profit and loss the total consideration paid amounts to 92 of the potential 
consideration on acquisition demonstrating the successful nature of  
the acquisition
throughout the year we pursued a number of opportunities with a view to 
broadening our portfolio while none were concluded acquisitions will 
continue to be part of our strategy for growth
exceptional items
during the year the group incurred a number of exceptional gains and costs 
that are separated for transparency and to provide a better understanding  
of the underlying performance of the group the net result of the gains and 
costs is an exceptional credit of £02m 2013 £1 1m 
gains – an exceptional gain of £22m was released as part of the accounting 
for the acquisition of webtec the final earn out based on trading to december 
2013 resulted in a release of contingent consideration and brings the total 
cost of acquisition to us404m versus total potential of us438m as 
previously reported the group disposed of one of its sites in valence france 
and after costs to sell recorded a £08m profit on disposal the merger of  
the uk pension schemes into a single new scheme resulted in a settlement  
gain of £02m and the group has a policy of reporting its settlement gains  
as exceptional
costs – the group incurred exceptional costs of £14m relating to a group 
wide reorganisation exceptional bonus costs of £08m contract startup 
costs of £05m and abortive acquisition costs of £03m
the reorganisation costs include a broad reorganisation of the group’s 
activities with the core elements being the centralisation of european finance 
and customer care functions into a single shared service centre in the uk it is 
anticipated that these changes will improve the efficiency and effectiveness of 
the business and are part of the platform for future growth exceptional bonus 
costs relate to the onetime share price related incentive that has payout 
triggers when the share price reaches £100 and £150 the oneoff bonus 
scheme was implemented when the share price was 145p owing to the 
significant improvement of the share price towards the latter part of the year  
a oneoff cost has been incurred and has been separated out to help 
yearonyear comparisons and improve the understanding of the underlying 
performance of the business contract startup costs relate to the non
recurring costs of setting up our knoxville facility to run 247  
improvement in underlying earnings per share
underlying earnings per share was 7 2p 2013 55p and basic loss per share 
was 46p loss 2013 08p earnings
cash flow and net debt
despite the increase in operating profit to £134m 2013 £1 17m net cash 
generated from operating activities was £103m 2013 £122m the reduction 
was mainly owing to absorbing £40m 2013 £1 1m of working capital 
required to support the growth in revenue of £17 3m 83 net capital 
expenditure increased to £49m 2013 £35m and the sale of land and 
buildings generated £43m 2013 £nil vacating the premises and resiting 
the operations will consume cash during the next 24 months cash outflow 
on tax and interest increased slightly to £32m 2013 £30m net cash 
outflow on acquisitions was £22m 2013 £5 1m and relates to the final 
settlement on the 201 1 acquisition of webtec
total cash contribution to defined benefit pension schemes was £5 1m 2013 
£46m with £09m being related to overseas schemes 2013 £1 1m total 
cash contributions to the uk scheme were £42m 2013 £35m with the first 
payments made under the uk assetbacked funding structure that was put in 
place during 201213 in addition the uk paid £06m of deferred contributions 
from the prior year relating to the old schedule of contributions expenses of 
£08m 2013 £16m are now reported through operating profit under ias 19 
revised where previously these expenses were reported as cash 
contributions to the uk scheme
cash flow
2014
£m
2013
£m
net cash flow from operating activities 103 122
net capital expenditure 49 35
net tax and interest 32 30
free cash flow 22 57
land sale 43 –
acquisitions 22 51
cash generation 43 06
dividend paid 07 –
exchange and other noncash movements 04 –
increase in net cash 32 06
opening net cash 22 70
disposal of subsidiary – 54
closing net cash 54 22
finance director’s review continued
30
scapa group plc  
annual report and accounts 2014 the principal deficits under the closed schemes are based in the uk 
addressing the cost and volatility of the uk legacy pension deficit remains  
the group’s primary pension objective and in january 2014 all three of the  
uk pension schemes were merged into a single new scheme as part of the 
second stage of the assetbacked structure project implemented in 2013  
the merger resulted in a number of liabilities being extinguished at below their 
balance sheet carrying value resulting in a £02m 2013 £1 1m settlement 
gain being recognised through the income statement the merger will also 
have ongoing benefits to the group as simplification will help to reduce the 
significant costs of administering the scheme
during the year the fair value of the scheme assets decreased by £10m 
which was lower than the decrease in total liabilities of £22m the latter being 
driven by an increase in corporate bond yields used to discount the liabilities 
the overall deficit in the scheme is £400m 2013 £412m
changes to the accounting standard for employee benefits have taken effect 
for the year ending march 2014 with prior year comparatives being restated 
under ias 19 revised the most significant impact for the group of the 
revised standard is the release of provisions for future scheme management 
costs previously these were held within the retirement obligation on the 
balance sheet and the associated costs were not separated out in the 
income statement at 31 march 2013 the group’s liability under ias 19 
revised was £412m versus £462m as previously reported under ias 19  
for further details of these changes see note 26
disposal of product liability claims
on 25 april 2013 the group sold scapa holdings georgia inc and its 
subsidiary scapa waycross inc together ‘georgia’ to an unrelated third party 
product liability claims arising from alleged exposure to asbestos and an 
associated insurance asset were held within georgia the insurance asset 
and asbestos liabilities along with the responsibility for managing and handling 
the asbestos lawsuits have transferred on the disposal of georgia to the  
new owner 
the net financial impact of the transaction and a summary of the assets  
and liabilities affected are disclosed within note 16
shareholders’ funds
shareholders’ funds have decreased by £17 9m to £47 7m 2013 £656m 
reflecting a net pension loss in the period of £2 1m 2013 £99m loss loss 
after tax of £67m 2013 £12m profit owing to the deferred tax writedown 
movements in equity relating to share issues share options and share 
dividends adding £0 1m 2013 £0 1m unfavourable currency impact on 
overseas asset values of £7  1m 2013 £27m favourable and tax charges 
booked directly to reserves of £2 1m 2013 £02m
p edwards
group finance director
dividends
the board is recommending a 100 increase in the full year dividend with  
a final dividend of 10p 2013 05p dividend cover being the ratio of earnings 
per share before exceptional items amortisation of intangible assets and 
legacy pension items is 7 2 times if approved at the annual general meeting 
the final dividend will be paid on 22 august 2014 to shareholders on the 
register on 25 july 2014
increase to group facilities
the group is financed principally by a mix of equity retained earnings a 
committed bank facility in the uk and small uncommitted facilities overseas 
in january 2014 the group refinanced its uk committed facility and entered 
a new agreement with a club of three of the leading uk based banks the 
new £400m 2013 £200m revolving credit facility is committed for a further 
four and a half years and in addition we have negotiated access to an 
uncommitted £200m ‘accordion’ facility should it be required
the financial covenants related to the new committed facility are the ratio of 
net debt to ebitda and interest cover to ebitda net debt must be less than 
three times adjusted ebitda ratcheting down over time to two point five 
times adjusted ebitda adjusted ebitda must be at least four times the net  
interest charges throughout the year under review the group comfortably 
complied with its loan covenants
financial risk managementtreasurycredit 
management
in the normal course of business the group is exposed to certain financial 
risks principally foreign exchange interest rate risk liquidity risk and credit 
risk foreign exchange risk is managed predominantly through forward 
contracts and central decisions on hedging investments and borrowings  
all forward contract movements are recognised in the income statement  
at the balance sheet date 
the group has an interest rate swap arrangement that it entered into in 2012  
to hedge the effects of interest rate movements on its us dollar borrowings 
the group does not hedge account for the swap and the movements in fair 
value are taken directly to the income statement the effect in the year under 
review was a profit of £0 1m liquidity risk is centrally managed by the group 
in conjunction with risk management policies and procedures that are 
reviewed and approved by the board subject to certain conditions and  
policy excesses the group manages its credit risk of sales made from north 
america and europe through credit insurance in addition tight credit control 
and a clear central policy and process mean that the group has very low 
overdue trading debts and has an excellent track record of recovery
continued progression on postretirement benefits
the group does not have any material defined benefit schemes in operation 
as the majority of the postretirement benefit schemes for qualifying 
employees are defined contribution the pension deficits carried on the 
group’s balance sheet relate to schemes that have been closed to both new 
members and future accrual for many years and some very small overseas 
arrangements that are classed as defined benefit 
31
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information sustainability report
■  asia
■  north america
■  europe
 
average headcount by region
1300
650
325
975
0
201112 201213 201314
640
414
113
609
491
109
620
499
104
no
■  male
■  female
 
gender diversity
100
80
60
40
20
0
overall leadership
team
senior
management team
directors
834
375
21
11
4
2
5
new appointments in june bring these numbers to ﬁve male and three female

making a positive contribution 
across the business
at scapa we believe that our employees make a positive contribution to the 
group’s success we currently have over 1200 employees over 18 locations 
providing a wealth of international skills experience and talent to draw from  
to enable a sustainable business to be built
total headcount 
recruiting the right people developing them and providing an engaging 
environment which motivates employees to contribute to and remain within  
the business is fundamental to the group’s longterm performance strategy 
we recognise that our culture is key in supporting the group’s future growth 
and work has already commenced to redefine and articulate our company 
values and guiding principles to understand how they can be best used to 
develop and grow our business and our people
diversity
at scapa we recognise and appreciate the value of diversity in the workplace 
including gender diversity and the benefits this can bring to the organisation  
in accordance with the applicable laws in each territory the group has a policy  
of equal opportunity and bases all employment related decisions both in the 
recruitment of new employees and in the management of existing employees 
around the principles of this policy our equal opportunities policy provides  
us with access to the widest labour market and allows us to recruit the best 
employees to meet the needs of the business we also strive to ensure that the 
work environment is free of harassment and bullying and that every employee  
is treated and treats others with dignity respect honesty and sensitivity
during the past year we have put in place a system to track and monitor 
gender diversity across all of our global business units and have committed to 
using recruitment promotion training and development to increase diversity 
including gender diversity across the group we believe that diversity within 
our leadership and senior management teams improves decisionmaking 
capabilities by challenging the status quo and enabling new ideas and 
effective teamwork
people development 
the skills knowledge and contribution from our employees drive the business 
forward and consequently employee development and growth are key 
elements of our strategy 
our hr strategy is closely linked to the strategic goals of the business and 
focuses on providing employees with challenging and engaging jobs as well 
as opportunities to achieve their full potential through learning and developing 
their careers our employees review and agree development objectives during 
their annual performance review with their manager and are encouraged to 
learn proactively through external training programmes on the job learning 
and internal mentoring programmes this year we have focused on 
integrating talent review succession planning and performance and 
development processes to meet the longterm needs of the business 
talent and capability development
following on from the pilot programme we conducted in 2012 we extended 
our inhouse talent review and succession planning programme to over  
300 managers and professional and technical employees across scapa 
during 2013 this has enabled us to identify our global talent and to prepare 
succession plans for significant roles within the business as a next step in the 
succession planning process and to nurture our talent we have identified the 
next group of internal managers to enrol on our managementor programme 
a management and leadership development programme for high potential 
employees developed in partnership with the harvard business school  
the programme comprises 44 management modules including budgeting 
negotiation crisis management and diversity that are designed to help 
managers and leaders gain competency broaden their skills and share their 
knowledge with colleagues in the business each module is built on the 
knowledge and experience of worldclass experts and realworld best 
practices and the feedback from managers who have already completed  
this programme has been extremely positive
32
scapa group plc  
annual report and accounts 2014 performance reward and recognition 
the group strategy is achieved by cascading the objectives set by the 
executive team through the online performance management tool in 2013 
we extended the tool to a further 20 of employees in management and 
technical positions this process enables a clear understanding of all 
responsibilities in order to achieve the group’s objectives via increased 
alignment and visibility of objectives and improved manager accountability 
we have continued our approach of rewarding people based on their 
performance potential and contribution to the business we use incentives  
to align the interests of the employee with the interests of the business  
this means we strive to pay employees a portion of the value they create  
for the group we believe this approach helps to attract retain and motivate 
the right people for the business
employee engagement and consultation 
as we continue to develop our people to meet the requirements of the 
business our employee engagement programme continues to develop  
we believe effective twoway communication with employees is important  
in increasing engagement through improved employee understanding  
of the business its performance and strategy embedding group culture 
building commitment and celebrating achievements encouraging 
communication between employees is becoming increasingly important  
as the group continues to develop its range of business activities across  
all geographical locations communication with employees is exchanged 
through team briefings town hall meetings employee newsletters and the 
scapa intranet continuous improvement of these channels is a priority in our 
communications strategy the appointment of an internal communications 
and engagement manager has increased the focus and commitment of 
providing consistency and quality across all of our internal communications
in addition to the employee engagement programme the group discharges 
its formal responsibility to consult with employees on a wide range of matters 
affecting their current and future interests this is achieved through regular 
planned meetings with local employee representatives including trade union 
bodies works councils and employee consultative groups 
community investment 
we have reinforced our commitment to the local community by supporting 
local charities and organisations
this year scapa continued their support for the christie representatives of 
the company attended the christie charity ball in trafford where all proceeds 
went to supporting the charity in their aims to drive knowledge and expertise 
towards a future without cancer 
scapa also continues to support local school silver springs academy by 
providing excess tapes and materials to be used in arts and engagement 
projects in september 2013 representatives from the school along with  
a group of pupils came to scapa in ashton to join in a workshop and a tour  
of the factory to see how the materials were made we look forward to 
supporting the academy in their future projects 
scapa is also heavily involved in supporting the hallé orchestra and the 
bridgewater hall in manchester the hallé has a rich history and ambitious 
vision for the future allowing our local national and international communities 
to benefit from the wideranging programmes it offers this year our 
corporate ticket allocation was opened out to employees allowing them  
to enjoy hallé and the bridgewater hall events throughout the year and  
we continue to provide annual sponsorship to support the development  
and delivery of the events programme
silver springs academy 
art projects made with scapa 
materials by the silver springs 
academy children at the workshop 
in september 2013 – now a 
permanent feature in the head 
office reception
33
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information sustainability report continued
health safety  environmental review 
health  safety
scapa is committed to providing products and services to our customers 
while minimising the impact on the health and safety of its people and the 
environment to enable the continuing viability of scapa we must ensure that 
the resources consumed are produced ethically and sustainably therefore 
we place great importance on the systems and processes used to effectively 
manage these commitments 
creating a zero accident culture
scapa’s health  safety vision is to have zero accidents this is the most 
fundamental obligation we have to our employees and those who work 
closely with us 
safety compliance
we ensure that we comply with our legal obligations and related scapa 
health  safety policy requirements through a scheduled programme of 
rigorous internal audits conducted by qualified health  safety professionals  
all scapa’s manufacturing sites have been internally audited during the year 
the findings are used to develop each site’s safety  health improvement 
plan known as their ship  
in addition our head of group health safety  environment supported by 
local professionals deployed at each site ensures that we keep ahead of 
changes to legislative requirements all risks identified are incorporated into 
the site ships 
scapa continues to make significant investments of time and capital in 
maintaining a safe environment to work in spending £06m in 201314 funds 
were spent on improving machinery guarding further improving the safety of 
pedestrians and reducing noise in our factories these projects delivered 
improvements which not only exceeded minimum requirements but also 
reduced risks systematically identified in our ships
safety leadership
we believe that safety performance is a true indicator of the quality of 
leadership at a site in order to achieve our health  safety objectives we are 
committed to ensuring that our safety organisation is properly resourced and 
trained to support the leaders who are accountable for health and safety  
at their sites we have invested and continue to invest in leadership training 
to ensure that our leaders have the skills to ensure that zero accidents can 
become an everyday reality
we monitor and scrutinise the health and safety performance of our site 
leaders to ensure that they deliver on specific health and safety commitments 
with this in mind bonus payments made to senior site staff are dependent on 
achieving a health and safety performance gateway
safety performance in 201314
we continue to enforce a rigorous process of reporting all health and safety 
incidents across the group this enables a process of investigation challenge 
and root cause analysis of every safety incident lost time accident lta  
to ensure that we reduce the likelihood of reoccurrence this has enabled  
the group to deliver a 26 improvement in lost time injury frequency rate 
ltifr per 200000 hours worked over the past four years we are also proud 
to report that the severity of accidents across the group has reduced as 
indicated by the 20 reduction in ltas with an absence of greater than three 
days in fact since 201 1 this rate has reduced by 125 for benchmarking 
purposes we monitor the uk statutory riddor rate scapa compares 
favourably with industry peers – our riddor rate of 034 is 19 better than 
the bpi benchmark of 042
the journey to a zero accident culture – our ship
ships record and track progress against site safety priorities each of our 
sites has a ship  which is a plan containing the objectives for the coming year 
for the site to improve and measure itself against 
in setting the ship  we identify actions from several sources
• internal audits show any gaps that we need to close
• external audits by customers our insurers international standards 
awarding bodies and regulators promote good practice and help us  
to identify improvements we could make
• we use safety opportunities generated by each site to identify key themes 
in safety both at a group and individual site level
• our head of group health safety  environment supported by local 
professionals scans the health and safety horizon to identify changes  
in legislation equipment materials or processes that present new risks  
and opportunities
• risk mapping scapa uses comprehensive site maps to identify risks  
by category for example areas where noise levels should be reduced  
the findings of the risk mapping exercise are fed into the ship
capital expenditure and resource allocations are based on the ship   
ships are reviewed changed and measured throughout the year 
future health  safety priorities 
we are committed to maintaining the level of safety performance success  
we have achieved to date 
a firm foundation of safety leadership is needed to support the next steps of 
wider employee engagement in health  safety activities to drive continuous 
improvement our focus is to build on the quality of our safety leadership  
this extends to all leaders at all levels at our sites who will develop their 
understanding of safety and risk management through a structured training 
programme tailored to scapa’s priorities and health  safety culture 
34
scapa group plc  
annual report and accounts 2014 environmental
maintaining a zero incident culture
scapa’s most basic commitment as embodied in our environmental  
vision is to have zero environmental incidents moreover scapa continues  
to demonstrate its commitment towards ensuring that our organisation 
conserves precious resources as scapa grows it is important that our 
consumption management and disposal of waste products are all responsible 
and sustainable in 20131 4 scapa reported no environmental incidents
at every stage of our manufacturing process we aim to reduce our impact on 
the environment by minimising waste and maximising energy conservation 
our sites continue to work to iso 14001 with three main european sites  
now accredited 
efficient transport and logistics
our goal is to significantly reduce the carbon footprint of our logistics operations
during the year we implemented a process to capture information on the  
co 2 emissions of our transport providers this information provides us with  
a reliable baseline to track progress against
as a prerequisite our tender processes for transportation services require 
that companies have adequate fleet management systems and that in europe 
they ensure compliance with european engine classes and standards
we equally have engaged with our hauliers to obtain standard reporting  
of their co 2 emissions 
reducing material waste and recycling more
we continue to invest in new ways of using recycled raw materials and  
in recycling scrap and other waste one of our success stories is in the 
manufacture of pib where we now reuse 80 of the waste from side cutting 
in addition we continue to increase the solvent recycled in our adhesive 
coatings as existing and potential customers demand more sustainable 
products we continue to investigate waterbased alternatives to our 
solventbased adhesives 
we actively manage and monitor our waste over the next year we will work 
to standardise our hazardous waste definition and look for more recycling 
opportunities across the company in the uk during 201314 we recycled 
22 1 more packaging waste compared to the prior year 1785 tonnes 
verses 1462 tonnes our waste management processes ensure that 
separation of waste by material makes them more recyclable all of our 
manufacturing sites recycle pallets cardboard and plastics 
emissions to air
we routinely monitor the air emissions required for us to comply with our 
operating licences as part of our clean technology investment programme 
201415 will mark the first year that we are targeting reductions in our emissions 
of licensed gases and substances 
energy usage and co 2 emissions
this is the first year of compliance with new regulations on reporting co 2 
emissions from 2015 we will report our co 2 emissions with comparatives 
from our improving data collection processes this reporting will help us  
to focus on new projects and ideas to improve energy efficiency and 
environmental performance across the group
greenhouse gas ghg emissions
tonnes of co 2 emitted 28730
tonnes per £m revenue 127
our emissions have been calculated by reference to the ghg protocol 
corporate standard 
emissions reported correspond with our financial year the outputs 
include all scope 1 and scope 2 emissions related to the group this 
includes emissions from all of our manufacturing plants and offices  
and also emissions from both our owned and leased assets including 
vehicles for which we are responsible in the uk and overseas no material 
emissions have been omitted however around 20 of the emissions 
quoted have been estimated where data has been difficult to obtain 
emissions have been calculated using data gathered from each scapa 
location and then applying emission factors obtained from uk government 
conversion factor guidance
emissions are predominantly from gas and electricity use in our 
manufacturing plants emissions from our offices and vehicles are low 
relative to those from our manufacturing activities
no comparative data is provided as this is our first year of compliance with 
regulation 2013 no 1970
35
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information sustainability report continued
supply chain corporate responsibility
we have a robust framework of corporate responsibility policies including our 
human rights policy our code of conduct and sustainability approach 
human rights
we define human rights as basic rights that allow individuals the freedom to 
lead a dignified life free from fear or want and free to express independent 
beliefs we acknowledge the responsibility of businesses to respect human 
rights by acting with due diligence to avoid infringing on the rights of others 
and to address any adverse impacts in which they are involved in line with the 
un guiding principles on business and human rights the ruggie framework
our aim is to ensure that we adhere to international human rights standards 
both through our own actions and by association with business partners and 
suppliers by providing a framework of fundamental principles of human rights 
by which scapa will be guided in the conduct of its business scapa sources 
materials including fabrics paper rubber films and chemicals from a wide 
variety of suppliers around the world that range from large international 
organisations to specialist local companies 
code of conduct and sustainability approach
scapa aims to act with integrity and professionalism with all suppliers and to 
support them to help achieve a responsible and sustainable approach across 
the supply chain we recognise that some smaller suppliers may find it 
challenging to adopt the practices expected in such cases scapa will adopt 
a risk based approach to ensure that their contribution to its responsibility and 
sustainability agenda progresses in line with their capabilities
our supply chain corporate responsibility policy statement is founded upon 
this belief for suppliers scapa will look to ensure that
• suppliers’ products comply both with their own product legislation and that 
of any countries for which the product is ultimately destined
• human rights responsibilities in line with the un ruggie framework are 
conformed to 
• employee working conditions of our suppliers are safe and hygienic with 
working hours that are not excessive and at least the legal minimum  
wage is paid for the location
• employees are not subject to harassment or discrimination
• materials used during the manufacturing process do not create any 
adverse environmental impacts
• materials purchased by suppliers are sourced from responsible producers 
with appropriate traceability systems
• products supplied to scapa do not lead to any adverse impacts on the 
health of any users in the supply chain
• consideration is given to the environmental impacts of the products supplied 
including packaging and transport to scapa manufacturing locations
• suppliers have ethical business practices in place including those relating 
to the avoidance of bribery or corruption
for supply chain management scapa will ensure that
• procurement teams segment their suppliers based on spend and by 
responsibility and sustainability risk
• suppliers receive complete and return the selfassessment responsibility 
and sustainability questionnaire together with copies of scapa’s code  
of conduct and antibribery guidance
• responsibility and sustainability development plans will be agreed with 
larger suppliers identifying mutual benefits
• training on responsibility and sustainability matters will be provided  
to each procurement team
this strategic report is approved
by order of the board
 
r l smith
company secretary
36
scapa group plc  
annual report and accounts 2014 chairman’s introduction to corporate governance
“the board is committed to  
a high standard of corporate 
governance which we believe  
is central to the continued  
success of the company”
james wallace 
chairman
the board is committed to a high standard of corporate governance  
which we believe is central to the continued success of the company in a 
sustainable manner over the long term and to maintaining the confidence  
of our shareholders and stakeholders
as the board of the company we are committed to providing clear effective 
leadership and instilling the highest ethical standards across the group  
i believe that this approach has enabled the group to deliver good results  
in a challenging macro economic environment 
the corporate governance report for the financial year ended 31 march 
2014 sets out how the board and its committees are structured and how we 
comply with the provisions of the uk corporate governance code which 
was updated in september 2012 ‘the code’ and introduced additional 
reporting and compliance requirements those requirements have been 
considered by the board during the year and are addressed in this report
the board has reviewed the requirements of the code and throughout the 
year ended 31 march 2014 the company was compliant with all relevant 
provisions as set out in the code during the year the board completed an 
internal evaluation further details of that evaluation are set out on page 43  
of this report 
the board comprises three independent nonexecutive directors and two 
executive directors and is supported by the company secretary i believe  
the composition of the board is well balanced and brings the right level  
of experience and independence to ensure that decisions are taken in  
the longterm interests of the group and all of its stakeholders as well  
as complying with the main provisions of the code 
in january 2014 the group secured a new £40m bank facility from  
lloyds bank hsbc and barclays complemented by an additional £20m 
uncommitted ‘accordion’ facility which will provide debt capital for the  
group to pursue its strategy of growing through acquisition to augment  
the group’s organic development 
during the year i met with several major investors to discuss shareholder 
engagement board composition remuneration and corporate governance 
i believe that shareholders value this open dialogue with the chairman which 
presents an opportunity to understand the corporate governance policies  
and standards in practice in scapa these meetings are independent and 
separate from the investor relations meetings undertaken by the executive 
directors i am pleased to report that feedback from our shareholders is 
positive and supportive of the business and management of the group
at the annual general meeting to be held on 22 july 2014 paul edwards 
group finance director richard perry senior independent director  
and michael buzzacott nonexecutive director will offer themselves for 
reelection biographies for members of the board are set out on pages  
38 and 39 of this annual report 
details of the annual general meeting are enclosed with this report  
the board and i look forward to meeting with shareholders in july
j a s wallace 
chairman
37
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information the right mix of skills  
and experience 
board of directors and company secretary
h r chae
group chief executive
appointment to the board
heejae chae joined the board as 
executive director in september 2009 
and subsequently became group 
chief executive in november 2009 
experience 
prior to joining scapa heejae was 
group chief executive of volex 
group plc he was previously the 
group general manager radio 
frequency worldwide for amphenol 
corporation he spent the early  
part of his career in finance at  
the blackstone group and credit 
suisse first boston before moving 
into industry heejae is currently a 
nonexecutive director of the hallé 
concerts society
p edwards
group finance director
appointment to the board
paul edwards joined the board  
in september 2010 as group  
finance director 
experience
prior to joining scapa paul was 
group finance director of ncc 
group plc paul is a chartered 
management accountant and mba 
and spent the earlier part of his 
career in manufacturing logistics  
and services sectors paul is currently 
chairman of the trustees of the  
hallé retirement benefit scheme
j a s wallace
chairman
appointment to the board
james wallace joined the board in 
august 2007 and became chairman 
in october 2007  
experience
an accountant by qualification 
james spent the majority of his 
executive career at pifco holdings 
plc until 2001 james has held 
various nonexecutive director 
positions and was chairman of 
bodycote plc from january 2002  
until april 2008 currently james  
is a nonexecutive director and 
chairman of the audit committee  
of manchester airport holdings ltd
committee membership
nominations committee chairman
audit and risk committee
remuneration committee
r j perry
nonexecutive director
appointment to the board
richard perry joined the scapa  
board in june 2005 and was 
appointed senior independent 
director in july 2006
experience
richard is currently group finance 
director of fenner plc to which 
position he was appointed in 1994 
he was formerly a senior audit 
partner with price waterhouse
committee membership
audit and risk committee chairman
nominations committee
remuneration committee
38
scapa group plc  
annual report and accounts 2014 1 executive directors 2
2 nonexecutive directors 3
1
2
 
 
board composition
1  6 years 2
2  6 years 3
1
2
 
length of tenure
m c buzzacott
nonexecutive director
appointment to the board
mike buzzacott joined the board in 
march 2008
experience
mike spent 35 years with bp  the last 
13 of those with bp chemicals he is 
currently nonexecutive director at 
genus plc and is a former director 
of croda international plc and  
rexam plc mike is a chartered 
certified accountant
committee membership
remuneration committee chairman
audit and risk committee
nominations committee
r l smith
group general counsel  
and company secretary
appointment
rebecca smith joined scapa in  
2012 as group general counsel  
and company secretary 
experience
rebecca is a uk qualified solicitor 
and spent the early part of her career 
as a solicitor at a leading uk law firm 
before moving into industry rebecca  
has a background in international 
corporate and commercial law  
and business including six years  
with an international technology 
commercialisation business  
prior to joining scapa rebecca  
was group legal counsel and 
company secretary at k3  
business technology plc
board member 
no of  
meetings 
attended
h r chae 66
p edwards 66
j a s wallace 66
r j perry 66
m c buzzacott 66
 excludes group general counsel
39
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information corporate governance
composition of board
directors no
executive 2
nonexecutive 3
length of tenure of directors
directors no
less than one year 0
one to three years 0
three to six years 2
more than six years 3
gender ratios
main board no
male 5
female 0
leadership team no
male 4
female 2
 new appointments in june bring these numbers to 5 male and 3 female 
senior management team no
male 21
female 11
board committees
nominations committee
the nominations committee is responsible for board recruitment and 
succession planning to ensure that the right skill sets are present in  
the boardroom
remuneration committee
the remuneration committee is responsible for determining all elements  
of remuneration for the executive directors and for reviewing the 
appropriateness and relevance of the group’s remuneration policy
audit and risk committee
the audit and risk committee’s main responsibilities are to monitor the 
integrity of the group’s financial statements to review internal and external 
audit activity and to monitor the effectiveness of risk management and 
internal controls
compliance statement
a detailed review of the company’s compliance with the uk corporate 
governance code issued by the financial reporting council in september 
2012 has been undertaken the review took into account the frc guidance 
on board effectiveness issued in march 201 1 and the frc guidance on audit 
committees issued in september 2012 the company has complied with all 
relevant provisions of the code throughout the year ended 31 march 2014 
and through to the date of this report
leadership
the role of the board
the board is responsible for the longterm success of the group and is 
ultimately accountable for the group’s strategy risk management and 
performance the board’s primary roles are to create value for shareholders 
by setting the group’s strategic objectives and providing entrepreneurial 
leadership to the group ensuring that the necessary resources are made 
available so that those objectives can be met
the board comprises two executive directors and three nonexecutive 
directors the names biographical details and committee memberships  
of the board are set out on pages 38 and 39 of this report 
in discharging its responsibilities the board also seeks to set promote and 
demonstrate adherence to our values and ethical standards for the group 
the board is fully committed to observing the duties owed by directors in law 
including promoting the sustainable success of the group for its shareholders 
and wider stakeholder base including employees suppliers customers and 
the community 
division of responsibilities of the chairman and chief executive
there is a clear division of responsibilities between the chairman and  
the chief executive each role has its own formal written description  
of specific responsibilities
the chairman’s principal responsibility is to lead the board in the 
determination of its strategy and the achievement of its objectives the 
chairman is responsible for organising the business of the board ensuring  
its effectiveness by facilitating full and constructive contributions to the 
development and determination of the group’s strategy and its overall 
commercial objectives from each member of the board the chairman is 
responsible for promoting the highest standards of integrity probity and 
corporate governance throughout the group the chairman manages the 
relationship with shareholders in relation to governance matters and regularly 
considers the composition and skill set of the board through evaluation  
the chairman sets the board agenda and with the company secretary 
ensures that the directors receive accurate clear comprehensive and timely 
information so that the board is properly informed prior to each meeting in 
order that there can be appropriately thorough consideration and debate  
of the issues at board and committee meetings
the chief executive is directly responsible for all executive management 
matters affecting the group his principal responsibility is ensuring 
achievement of the agreed strategic objectives and leadership of the business 
on a daytoday basis the chief executive is accountable to the board for  
the financial and operational performance of the group the management 
structure of the business under the chief executive’s leadership is set out  
on page 41 
40
scapa group plc  
annual report and accounts 2014  appointments to commence june 2014
the role of the nonexecutive directors
the nonexecutive directors bring independence and a wide range of 
experience to the board their role is to help develop strategy and to promote 
constructive debate and challenge in board discussions richard perry is 
currently senior independent director the senior independent director 
provides a sounding board for the chairman and serves as an intermediary 
for the other directors as necessary as well as carrying out the evaluation of 
the chairman he also acts as a line of contact for shareholders if they have 
concerns which are not appropriate for discussions through the chairman 
chief executive or group finance director
the role of the company secretary 
the company secretary advises the board through the chairman on all 
governance matters all directors have access to the services of the company 
secretary and may take independent professional advice at the company’s 
expense in conducting their duties in accordance with the company’s  
articles of association and the schedule of matters reserved for the board  
the appointment and removal of the company secretary is a matter for the 
whole board
operation of the board
the board held six formal meetings during the 2014 fiscal year all of  
which were attended by all the board members in addition there were  
six telephone update calls and ad hoc conference calls during the year  
to deal with matters as required which were attended by all board members 
the company secretary was in attendance at all board meetings as well  
as at all telephone update and conference calls the board held its annual 
offsite meeting in september 2013 to consider the group’s strategy 
reports from the executive directors are circulated in advance of each board 
meeting and they focus on major operational matters reports are also 
produced by the leadership team on key business areas for each board 
meeting to ensure that the directors are kept fully informed on the status of 
the business presentations from across the group’s divisions and functions 
are made to the board on a regular basis during the year overviews were 
presented by the president of healthcare and the group operations director 
other matters considered by the board during the year included 
presentations from senior managers in environment health  safety 
information technology and industrial commercial approval of the annual 
budget review of governance issues affecting the company review of the 
corporate structure of the group and assessment of the corporate risk map
governance across the group
all areas of the group are required to meet high standards of governance  
and controls the group’s operations are reviewed by the leadership team 
through regular reports meetings and presentations the group’s risk  
 assurance team performs regular audits of governance and control 
standards reporting its findings to the audit and risk committee of the board
leadership team structure
the group chief executive is supported by the group’s leadership team whose structure is set out below
leadership team structure
heejae chae
group chief executive
paul edwards
group finance 
director
clare douglas
group hr director
rebecca smith
group general  
counsel and  
company 
secretary
joe davin
group president 
healthcare
chris carter
group operations 
director
james neuling
managing director 
industrial
sayoung jung
director of strategy 
and corporate 
development
41
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information corporate governance continued
matters reserved for the board
in accordance with the uk corporate governance code there is a formal 
schedule of matters reserved for the board’s decision which is monitored by 
the company secretary and reviewed annually by the board specific matters 
reserved for the board’s consideration include 
• setting the group’s strategy
• approving the group’s annual operating plan
• reviewing operational and financial performance
• approving major acquisitions divestments and capital expenditure
• approving changes to governance and business policies
• reviewing material contracts and contracts not in the ordinary course  
of business
• setting dividend policy and recommending dividend payments
• appointing the group’s external and internal auditors 
• reviewing the group’s systems of risk management and financial controls 
including effectiveness of internal audit
• ensuring that appropriate management development and succession 
plans are in place
• reviewing environmental health and safety performance of the group
• reviewing the effectiveness of the board and its committees
• appointing and removing the company secretary
the board delegates matters not reserved for the board concerning  
the management of the group’s business to the leadership team 
board committees
the board has delegated certain responsibilities to the following  
board committees
• the audit and risk committee
• the nominations committee
• the remuneration committee
the reports of the audit and risk committee nominations committee and 
remuneration committee are set out on pages 46 to 64 each committee 
operates under clearly defined terms of reference which are reviewed 
annually and any proposed changes to those terms are referred to the board 
for approval each committee reports to the board via the chairman of the 
committee the board has provided its committees with sufficient resources 
to undertake their duties including access to the company secretary and 
external advisers where appropriate
attendance at meetings
the following table sets out attendance of each director at board meetings held during the year
board
audit and risk 
committee
remuneration 
committee
nominations 
committee
number of meetings 6 4 6 2
james wallace chairman 6 4 6 2
heejae chae chief executive 6 4 4 1
paul edwards finance director 6 4 3 –
richard perry senior independent director 6 4 6 2
michael buzzacott nonexecutive director 6 4 6 2
although not members of the committees mr chae and mr edwards attend meetings of the audit and risk committee remuneration committee and 
nominations committee as invited attendees when appropriate
42
scapa group plc  
annual report and accounts 2014 board effectiveness
composition and independence of the board
the board comprises a nonexecutive chairman two nonexecutive 
directors and two executive directors the code requires that at least 
onehalf of the board should be independent nonexecutive directors and 
this requirement has been met throughout the year all nonexecutive 
directors are considered by the board to be independent and free from  
any relationship or circumstance that could affect independent judgement 
the skills and experience of the nonexecutive directors are wide and varied 
and they provide constructive challenge in the boardroom the composition 
of the board is intended to ensure that its membership represents a mix of 
backgrounds and experience that will optimise the quality of deliberations and 
decision making we consider diversity in the composition to be an important 
factor in the effectiveness of the board and in searching for prospective 
directors we take into account the existing skill set of the board and areas  
we have identified for development to meet future needs and address 
succession planning
board diversity
the board recognises the importance of gender diversity throughout the 
group and is committed to supporting women in achieving positions in senior 
management our leadership team details of which are set out on page 41 
comprises eight positions three of which are held by women further 
information on the total female representation in our workforce is set out  
in the sustainability report on page 32
we also recognise the importance of a board diverse in all respects  
and our board comprises members with a wide range of experience  
and backgrounds the board published a statement on board diversity 
which is set out in the corporate governance section of our website  
 wwwscapacomencorporategovernance further information  
on our hr policies is set out on pages 32 and 33 
subject to the company’s articles of association the companies act 2006 
and satisfactory performance nonexecutive directors are appointed  
for an initial term of three years before the third and sixth anniversary of 
appointment the director discusses with the board whether it is appropriate 
for him or her to serve a further term of three years the appointment of any 
director who has served more than nine years is subject to annual review by 
the board the letters of appointment for the nonexecutive directors set out 
the number of days expected to be required to perform their duties additional 
time commitments are expected from those nonexecutive directors who 
individually serve as the chairman of any committee of the board
scapa recognises that nonexecutive directors have other business interests 
outside the company and that other directorships bring benefits to the board 
all existing directorships are included in the biographical details of the 
directors on pages 38 and 39 nonexecutive directors are required to obtain 
approval from the chairman before accepting any further appointments
the nonexecutive directors meet formally without the executive directors  
at least once a year and also meet informally on other occasions
reelection
directors retire every three years at the annual general meeting and may  
offer themselves for reelection by the shareholders at the annual general 
meeting in july 2014 paul edwards group finance director richard perry 
senior independent director and michael buzzacott nonexecutive 
director will retire and offer themselves for reelection
in june 2014 mr perry will have held office with the company for nine  
years the board considers that mr perry continues to be independent 
notwithstanding the duration of his tenure as a nonexecutive director  
of the company in reaching its conclusion the board has taken into account 
all relevant matters as set out in the uk corporate governance code which 
fall to be considered when determining whether a director is independent of 
character and judgement
further information on the appointment and replacement of directors is given 
in the directors’ report on page 66
conflicts of interest
under the companies act 2006 a director must avoid a situation where 
a direct or indirect conflict of interest may occur the company has in place 
procedures to deal with any situation where a conflict may be perceived
the nominations committee annually reviews and considers the interests  
and other external appointments held by the members of the board the 
directors have a continuing duty to inform the board of any potential conflicts 
immediately so that they may be considered there is a formal register of 
conflicts in which any authorised conflicts of interest would be recorded 
during the year none of the directors declared a conflict of interest the 
board has specifically considered the other appointments of the directors 
details of which are included in their biographies on pages 38 and 39 and 
has confirmed that each director is able to devote sufficient time to fulfil  
the duties required of them under the terms of their contracts or letters  
of appointment
board evaluation
in accordance with the uk corporate governance code the board has 
established a formal process for the rigorous evaluation of the performance  
of the board its committees and individual directors on an annual basis  
the evaluation is conducted by the chairman supported by the senior 
independent director and company secretary each director is required to 
complete a detailed questionnaire on a range of matters including the balance 
of skills and experience of the board independence of directors diversity  
and relations between the executive directors and nonexecutive directors 
the chairman and the company secretary hold interviews with each director 
to develop feedback on the questionnaires
the remuneration committee reviews the performance of the executive 
directors the chairman reviews the performance of the nonexecutive 
directors and board committees with the exception of committees chaired 
by the chairman the senior independent director reviews the performance 
of the chairman and committees chaired by the chairman
43
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information corporate governance continued
during the year the chairman met with the independent nonexecutive 
directors without the executive directors present and the senior 
independent director met with the other nonexecutive directors  
without the chairman present
induction and training
on appointment each director takes part in an induction programme through 
which they are provided with comprehensive and uptodate information about 
the group and its business the role of the board and the matters reserved  
for its decision the terms of reference and membership of the board  
and committees and the powers delegated to those committees the 
programme includes meetings with other directors the leadership team  
and senior management members in addition each new director is provided 
with guidance from the company secretary on the group’s corporate 
governance practices and procedures regulatory obligations applicable to 
the board and briefings on wider responsibilities on areas such as directors’ 
duties the induction programme is supplemented by visits to key locations 
and meetings with key senior executives 
throughout their period in office the directors are updated on the group’s 
business the competitive environment corporate social responsibility matters 
and other changes affecting the group and the industrial sectors in which the 
group operates the board tries to visit different group operations each year 
to help extend the breadth and depth of the nonexecutive directors’ 
understanding of the group’s business
training is provided to the directors which in the current year included recent 
updates to corporate governance best practice and guidance on directors’ 
responsibilities under the aim rules for companies
information
during the year we undertook two initiatives to improve efficient and effective 
use of the board’s time the first initiative concerns the type of information 
provided to the board cognisant of the time pressures faced by the directors 
in reviewing board documentation we rationalised the amount of detailed 
information provided by members of the leadership team to optimise focus 
on key issues affecting the business the directors receive executive 
commentaries from the leadership team on a timely basis in addition  
to the reports from the executive directors and company secretary which  
are provided in advance of each board meeting as part of that initiative  
we adopted a more forwardlooking reporting system to better enable the 
board to understand how the strategy is being implemented through current 
and future activities of the group the board is provided with sufficient 
management information and reports on a timely basis and receives briefings 
by members of the leadership team and senior management regularly to 
ensure that the board is fully up to date with key issues concerning the group 
we also introduced an electronic delivery system for board documentation 
direct to ipads which facilitates timely and efficient delivery of information  
and board packs to the directors this approach also reduces the amount  
of paper used by the board and is in line with our move to use electronic 
communications with shareholders which we implemented following the 
relevant approvals at the annual general meeting held in july 2013 
indemnification of directors
qualifying third party indemnity provisions as defined in section 234 of the 
companies act 2006 are in force for the benefit of directors who held office 
during the year the company maintains directors and officers liability 
insurance for the group’s directors and officers
accountability
financial and business reporting
the board is responsible for presenting a fair balanced and understandable 
assessment of the group’s position and prospects the statement setting  
out the reasons why the board continues to adopt the going concern basis 
for preparing the financial statements is included in the directors’ report on  
page 65
internal control system 
the board confirms that there is an ongoing process for identifying evaluating 
and managing the significant risks to the achievement of scapa’s strategic 
objectives and this process was in place throughout the year under review 
and up to the date on which the accounts were approved the process 
accords with the code and is regularly reviewed by the board through the 
audit and risk committee whose review of the effectiveness of the group’s 
risk management and internal controls systems includes
• a formal review of the group’s risk profile at least once every six months 
to assess potential risk areas and action plans to address these risks
• review of the strategic and annual internal audit plan
• review of the external audit strategy and plan
• quarterly review of the implementation of internal audit recommendations
• review of declared financial and operational control selfassessments 
against minimum control standards across all locations 
• review on an annual basis of group policies in relation to whistleblowing 
antibribery and corruption and prevention of fraud
the board supported by the audit and risk committee is responsible for 
determining the nature and extent of the significant risks the group is willing 
to take in achieving its strategic objectives and for maintaining sound risk 
management and internal control procedures 
44
scapa group plc  
annual report and accounts 2014 the group’s internal control system is designed to manage the risk of failure 
to achieve business objectives rather than to eliminate that risk such 
systems can only provide reasonable and not absolute assurance against 
material misstatement or loss 
during the year there have been no significant failings weaknesses or any 
material internal control failures that have been identified and which require 
reporting in the 201314 annual report and accounts
communications with shareholders
at the company’s annual general meetings all directors are available  
to respond to questions from shareholders present the annual general 
meeting provides a forum for constructive communication between the  
board and shareholders throughout the year the executive directors and 
separately the chairman meet with investors to discuss matters relevant  
to the company 
 
r l smith
company secretary
45
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information committees
board
risk management
internal control
internal audit
financial reporting
external audit
corporate 
governance
audit and risk committee
nominations committee
remuneration committee
report of the audit and risk committee
the audit and risk committee report for the year ended 31 march 2014 is  
set out on the following pages 46 to 49 overall it has been a busy year for  
the committee which delivered its business as usual work reviewed and 
challenged a number of oneoff accounting items and considered regulatory 
guidance issued in final form or in draft during the year 
from a business as usual perspective there is nothing to bring to your 
attention as a highlight in summary the committee considers that it has 
delivered what it set out to do and has a clear plan for 201415 this new  
style of report is intended to convey that message clearly and concisely  
the chairman of the committee will be available at the annual general 
meeting to respond to any questions shareholders may raise on any of  
the committee’s activities
aims and objectives
the overall aim of the committee is to monitor the integrity of the group’s 
financial statementsannouncements its accounting processes and the 
effectiveness of internal controls and risk management the committee 
assists the board in fulfilling its responsibility to ensure that the group’s 
financial systems provide accurate and uptodate information on its financial 
position and supports the board in its consideration as to whether the 
group’s published financial statements are fair balanced and understandable 
composition
the board has nominated richard perry as chairman of the audit and risk 
committee primarily due to his extensive experience as group finance director 
at fenner plc and previously as a senior audit partner at price waterhouse 
james wallace and mike buzzacott make up the audit and risk committee’s 
membership both qualified as accountants and each has significant 
experience of risk management governance and internal control in 
manufacturing organisations this relevant experience allows them to 
• understand the risks facing a global manufacturing company and 
approaches to managing its risks
• undertake finance management and strategic decision making  
in a global manufacturing company
• provide constructive challenge to the reports and assurances given  
by management and guide the design and implementation of a  
suitable assurance framework
• ensure overall external audit efficiency including capturing control 
improvement and minimising duplication of assurance work 
• provide practical insights on the group’s approach to  
corporate governance
the company secretary acts as the secretary to the audit and risk 
committee
meeting frequency and attendance
the audit and risk committee is required to meet formally at least  
three times per year
member 
no of  
meetings 
attended
r j perry 44
j a s wallace 44
m c buzzacott 44
others who are invited to attend meetings of the committee
• external audit – deloitte llp
• head of group risk  assurance
• group chief executive
• group finance director
• group financial controller
the audit and risk committee’s full terms of reference can be found in the 
group corporate governance section of the company’s website  
 wwwscapacomencorporategovernance
“effective risk management  
will safeguard our core business 
allowing us to pursue  
growth opportunities”
richard perry
chairman of the audit  
and risk committee
46
scapa group plc  
annual report and accounts 2014 the committee’s terms of reference are reviewed annually and this year’s 
review was conducted in line with the institute of chartered secretaries and 
administrators icsa guidance issued in june 2013 following this year’s 
review it was decided by the committee that its name should reflect its 
responsibilities in relation to both assurance and enterprise risk management 
therefore the audit committee was renamed the audit and risk committee
in summary the audit and risk committee is required to
• oversee and advise the board on the current risk exposures of the 
company and related future risk strategies
• review reports on any material breaches of risk limits and the adequacy  
of proposed actions
• review the group’s procedures for detecting fraud
• review the group’s procedures for the prevention of bribery and corruption
• review the group’s procedures for ensuring that appropriate arrangements 
are in place to enable employees to raise matters of possible impropriety  
in confidence
• review the effectiveness of the company’s financial reporting and internal 
control policies and procedures for the identification assessment and 
reporting of material financial and nonfinancial risks
audit and risk committee activities
in order to discharge its responsibilities during the year the committee has 
undertaken the following activities
financial statements and reports
• reviewed and approved the updated group authority matrix
• reviewed and approved the external audit fees for 201314
• reviewed the us corporate structure
• reviewed the interim accounts and related statements and discussed
 – key accounting judgements
 – income statement for the half year specifically revenue trading profit 
exceptional items and pension administration costs
 – significant judgements on credit insurance and selfinsurance
 – reduction in the stock provision resulting from differences between 
gross and net inventory
 – revised accounting for ias 19 revised adopted during the period
financial statements and reports cont’d
• reviewed and considered the significant issues in relation to the financial 
statements and how these have been addressed including
 – going concern the committee challenged the validation of the going 
concern assumptions used in the preparation of the annual report 
and accounts by reviewing in detail the forecasts provided by the 
management in particular the committee was involved in the review 
and approval of the group’s new committed facility and its associated 
financial covenants
 – deferred tax assets are held in a number of jurisdictions a number  
of judgements are involved in calculating the right amount of deferred 
tax to be carried on the balance sheet the committee reviewed  
the profit forecasts from the management and their associated risks 
and challenged the management’s assessment concerning the likely 
utilisation of deferred tax assets the committee also reviewed the tax 
planning activities undertaken in the year and the impact of future 
plans on the utilisation of tax assets the result of the reviews was a 
decision to write down the amount of deferred tax during the current year
 – exceptional items the committee received reports and challenged  
the basis and completeness of the information in particular the 
committee considered the nature of the items and determined 
whether separate disclosure was appropriate or not the committee 
discussed with the management the key judgements behind all the 
exceptional items and agreed with their recommendations
 – inventory valuation is a significant item on the balance sheet and 
therefore exposes the group to risks around valuation and existence 
the committee reviewed the level of inventory held with specific 
focus in relation to the knoxville site where stock accuracy has 
improved with the implementation of sap the internal controls 
adopted around inyear and year end counts and the policies 
maintained at site level for the retention of inventory
 – pension liabilities the committee took external advice in determining 
the pension liabilities and challenged the assumptions used in 
particular the committee reviewed the discount and inflation rates 
used in determining the net pension liability
• reviewed the year end accounts and related statements and auditor’s 
report for 201314 to ensure that the report is fair balanced and 
understandable
47
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information report of the audit and risk committee continued
external audit
• monitored and ensured the independence and objectivity of the external 
auditor 
• approved all nonaudit service work over £10000
• reviewed and approved the scope and methodology of the external 
audit strategy for 201314
• reviewed the performance of the external auditor and considered the 
reappointment of deloitte llp as auditor for 201415 and recommended 
the appointment to the board
internal audit
• evaluated the adequacy of the strategic and annual internal audit plan
• reviewed and followed up where appropriate management responses  
to internal audit findings and recommendations raised during the year
• reviewed and approved the risk  assurance team resourcing including 
the cosource provision and associated costs
• reviewed the performance of internal audit
• performed an ongoing review of compliance with the group’s processes 
to prevent and detect bribery and corruption
risk management
• reviewed the key risks facing the group and the ongoing 
development and implementation of action plans to mitigate these 
risks
• reviewed and discussed changes to the uk corporate governance 
framework and its impact on reporting requirements
• reviewed the updated group whistleblowing policy and procedure  
to enable anonymous reporting of complaints
• reported to the board on how it has discharged its responsibilities
to assess the effectiveness of our external auditor a formal performance 
review is undertaken on an annual basis to identify the adequacy of their 
approach to
resource quality – it is important that the external auditor has achieved the 
right balance of audit team resource while they should be providing team 
continuity and knowledge they should also be providing a fresh perspective 
through new team members at all levels to enable the current audit processes 
and accounting policies to be challenged
effective communication – is key to obtaining the highest quality audit 
service from our external auditor and includes
• key audit judgements are communicated at the earliest opportunity to 
promote discussion and challenge between themselves and management
• informing scapa of audit issues as they arise so that these can be dealt 
with in a timely manner
• inyear communication regarding good practice changes to reporting 
requirements and accounting standards to enable scapa to be prepared 
prior to year end
• timely provision of audit and risk committee papers to enable adequate 
management review and feedback
• quality of the reports and publications provided by the external auditor  
in terms of content relevance and presentation
scoping and planning – specifically relating to the year end audit work
• consultation with stakeholders including group and local finance teams 
local warehouse teams group risk  assurance and the audit and  
risk committee
• timely provision of the external audit strategy and timetable to stakeholders
• transparency in the communication and management of changes to the 
external audit plan and related timings
fees – are transparent and communicated prior to the commencement  
of any work undertaken where variations occur these are informed at the 
earliest opportunity to enable dialogue and negotiation to be undertaken
internal audit
internal audit at scapa is managed and delivered by the group risk  
assurance team against an agreed mandate this function performs 
independent internal audit and facilitates standardised and structured risk 
assessment across the group specialist internal audits are conducted by 
experts inhouse and outsourced under the direction and management  
of the head of group risk  assurance 
48
scapa group plc  
annual report and accounts 2014 in line with the group’s internal audit charter a threeyear internal audit 
strategy and an annual internal audit plan are approved by the audit and  
risk committee each year these target the most significant areas of risk to 
provide assurance that key controls are effectively designed and consistently 
operated audit reports are produced to convey the extent of control assurance 
derived from the formal testing of controls in providing independent good 
practice guidance the group risk  assurance team assists the business  
in the continuous improvement of controls and procedures 
quarterly summary reports are presented by the group risk  assurance 
team to the audit and risk committee to convey
• an uptodate view of the group’s risk profile
• details of internal audits undertaken during the period
• an overall assessment of the group’s control environment
• the status of management actions arising from the risk management  
and internal assurance processes
the head of group risk  assurance is accountable to the audit and risk 
committee and has access to the committee and its chairman at any time 
during the year as a matter of course the head of group risk  assurance 
meets with the chairman of the audit and risk committee independently  
of management
the group risk  assurance team has no operational responsibility or 
authority over any of the activities it has reviewed during the year nor has the 
team designed the control frameworks in place the group risk  assurance 
team members do not hold shares in the company this ensures that the 
team is sufficiently objective and independent of the areas under review  
to avoid prejudice and conflicts of interest
external audit
auditor independence
the committee continues to monitor the external auditor’s compliance with 
applicable ethical guidance and guidelines and considers the independence 
and objectivity of the external auditor as part of the committee’s duties
the committee received and reviewed written confirmation from the external 
auditor on all relationships that in their judgement may bear on their 
independence the external auditor has also confirmed that they consider 
themselves independent within the meaning of uk regulatory and 
professional requirements
in all services purchased the group selects the provider best placed to 
deliver the work in terms of quality and cost as a general principle the 
external auditor is excluded from consultancy work and other nonaudit work 
however scapa does recognise that the knowledge and experience gained 
by the external auditor through their statutory work provides a compelling 
reason for selecting them over other providers
the external auditor may be appointed to provide nonaudit services where it 
is in the group’s best interests to do so provided a number of criteria are met 
these are that the external auditor does not
• audit their own work
• make management decisions for the group
• create a conflict of interest
• find themselves in the role of an advocate for the group
nonaudit services for up to £10000 which comply with the above criteria 
may be provided by the external auditor with authorisation in advance by the 
group finance director 
all projects where forecasted expenditure exceeded £10000 were approved 
by the audit and risk committee
services undertaken were mainly focused around tax advisory work where 
knowledge of the group’s tax affairs and strategy place deloitte well for 
delivering best value in addition deloitte worked on the due diligence for  
the aborted acquisition in asia
tendering policy and review of auditor effectiveness
the current contract of service grants a threeyear contract with the option to 
extend for a further two years therefore we have the option to review service 
quality and market test the contract at the end of three years financial year 
201314 
deloitte llp was appointed as the group’s external auditor in 201 1 after a 
competitive tendering exercise deloitte llp have been the group’s external 
auditor for three financial years and the engagement partner has completed 
three of their five years as audit partner
following the positive outcome of a performance and effectiveness evaluation 
undertaken by the management the audit and risk committee concluded 
that it was appropriate to recommend to the board the reappointment of 
deloitte llp as the group’s external auditor for the next financial year
r j perry
chairman of the audit and risk committee
28 may 2014
49
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information the report of the nominations committee for the year ended 31 march 2014 
is set out below
aims and objectives
the aims and objectives of the nominations committee are set out in the 
nominations committee’s full terms of reference which can be found in  
the corporate governance section on the company’s website  
 wwwscapacomencorporategovernance
in summary the nominations committee is required to
• review the board structure size and composition and make 
recommendations to the board with regard to potential changes
• seek the appointment of directors with the appropriate mix of skills 
knowledge and experience that the board requires to ensure that it is 
effective in discharging its responsibilities 
• review its own performance constitution and terms of reference to  
ensure that it is operating at maximum effectiveness
• review the reelection of directors at the annual general meeting
• meet at least twice yearly and on an ad hoc basis as required and is 
responsible for nomination for approval by the board candidates for 
appointment to the board and for succession planning 
composition
the nominations committee comprises the three nonexecutive directors  
of the company james wallace chairman richard perry senior 
independent director and mike buzzacott independent director  
mr wallace acts as chairman of the committee the company secretary 
acts as secretary to the committee
meeting frequency and attendance
the nominations committee meets formally at least twice each year with 
other meetings taking place on an ad hoc basis as required only members of 
the committee have the right to attend committee meetings however other 
individuals such as the chief executive the finance director and external 
advisers may be invited to attend for all or any part of the meeting as and 
when appropriate the committee met formally twice during the year and all 
members attended both meetings noncommittee members of the board 
were also invited to attend
member
no of  
meetings 
attended
j a s wallace 22
r j perry 22
m c buzzacott 22
report of the nominations committee
“the nominations committee 
continues to review the succession 
planning for directors taking into 
account the challenges and 
opportunities facing the company”
james wallace
chairman of the 
nominations committee
board  
committees
 
 
 
 
board structure
succession
planning
board evaluation
board rotation
 
 
 
 
remuneration committee
audit and risk committee
nominations committee
50
scapa group plc  
annual report and accounts 2014 board diversity policy
the board recognises the importance of diversity in its broadest sense in 
the boardroom as an essential element in maintaining board effectiveness 
and a competitive advantage
diversity of skills background knowledge international and industry 
experience and gender will be taken into consideration when seeking  
to make new appointments to the board and its committees all 
appointments will be made on merit taking into account suitability  
for the role composition and balance of the board to ensure that the 
company has the appropriate mix of skills experience independence  
and knowledge 
the board will consider suitably qualified applicants for nonexecutive 
director roles from as wide a range as possible with no restrictions on 
age gender creed ethnic background or current executive employment 
but whose competencies and knowledge will enhance the board 
independence and the ability to fulfil time commitments required will  
also be taken into account
the board will ensure that procedures are in place for orderly succession 
to the board so as to maintain the correct balance and to ensure ongoing 
progression
january 2014
nominations committee activities
the committee has undertaken the following activities during the year
• undertook the annual evaluation of the board’s effectiveness and 
subsequently determined that the board and its committees continue  
to perform effectively
• reviewed letters of appointment for the nonexecutive directors with 
regard to extension of their contracts which were approved for 
recommendation to the board of directors 
• reviewed board rotation for approval at the forthcoming annual general 
meeting in accordance with the company’s articles of association and  
the uk corporate governance code
• reviewed and approved the nominations committee’s terms of 
reference these remain in line with current guidelines from icsa and will 
be monitored in the event of any changes in best practice or legislation
• recommended the adoption of the board diversity policy see right which 
was subsequently adopted by the board the policy can also be found in 
the group corporate governance section on the company’s website  
 wwwscapacomencorporategovernance
• discussed and debated the future balance of skills and experience as well 
as succession planning to ensure the right balance of nonexecutive 
director input
in the coming year the committee will continue to monitor the composition 
and effectiveness of the board and committees of the company in addition 
to monitoring developments in corporate governance to ensure that we act  
in the spirit of good governance practice
j a s wallace
chairman of the nominations committee 
28 may 2014
51
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information board  
committees
 
 
 remuneration 
policy
 
share incentive 
plans
bonus t argets
contractural t erms 
of employment
employee beneﬁt 
structures
remuneration committee
audit and risk committee
nominations committee
statement from the remuneration committee chairman
dear shareholder
i am pleased to present the directors’ remuneration report for the year 
ended 31 march 2014 in october 2013 the large and mediumsized 
companies and groups accounts and reports regulations 2008 as 
amended came into force and this report complies with those regulations 
and the uk code on corporate governance september 2012 the 
directors’ remuneration report for the year ended 31 march 2014 has  
been prepared on behalf of the board by the remuneration committee 
this report is in two sections
• the directors’ remuneration policy report pages 54 to 59 which 
contains details of the remuneration policy that we propose will apply from 
the 2014 annual general meeting to be held on 22 july 2014 subject to 
obtaining shareholder approval at the agm
• the directors’ annual remuneration report pages 60 to 64 this section 
sets out details of how our remuneration policy was implemented for the 
year ended 31 march 2014 and how we intend the policy will apply for the 
year ended 31 march 2015
the directors’ remuneration policy report will be put to a binding 
shareholder vote at the agm on 22 july 2014 at that agm the directors’ 
annual remuneration report will be put to an advisory shareholder vote
remuneration for 2014
details of the remuneration decisions for 2014 are set out in the directors’ 
annual remuneration report below in summary for the year ended 31 
march 2014 underlying trading profit was £155m reflecting good growth over 
the prior year and continuing the trend of progress made over recent years 
under the direction of heejae chae paul edwards and the senior leadership 
team in addition margin improved to 69 with continued investment in 
growth the group continued to make good progress against its strategic 
objectives including achievement of growth from all of our markets with the 
quality of the performance improving as the group continues to diversify its 
portfolio customer base and geographical breadth adjusted eps increased 
by 309 to 7 2 pence
member
no of 
meetings 
attended
j a s wallace 66
r j perry 66
m c buzzacott 66
the annual bonus target of improvement in the group’s operating profit was 
set by the committee at the outset of the financial year the target was met 
and the executive directors will each receive a bonus equal to 100 of salary 
for 2014 in january 2014 the remuneration committee approved bonus 
payments to the executive directors and two senior executives under the 
terms of a share price incentive plan which was adopted by the board  
in may 2010 when the company’s share price was 145 pence as a oneoff 
incentive at a time when the company was restricted from making meaningful 
sharebased awards as a result of the low share price and insufficient 
headroom within share allotment authorities 
under the terms of the scheme the executive directors and certain senior 
executives are entitled to a bonus set as a percentage of salary if the 
midmarket price of the company’s shares equals or exceeds £100 for 30 
consecutive days during the period 1 july 2010 to 30 june 2015 and a further 
bonus set as a percentage of salary if the midmarket price of the company’s 
shares equals or exceeds £150 for 30 consecutive days during that fiveyear 
period during the year ended 31 march 2014 the share price increased from 
£068 to £1 16 and has remained above £100 since 9 december 2013 in 
accordance with the terms of the scheme the required exceptional increase 
of 590 in the company’s share price was achieved and triggered payments 
to the chief executive and the group finance director equal to 100 of their 
salary during the year ended 31 march 2014 two further senior executives 
received payments equal to 75 and 50 of salary respectively under the 
scheme any future payouts under this scheme will be satisfied in cash or  
at the discretion of the committee a combination of cash and shares the 
committee may elect to satisfy a part of the bonus in shares and match the 
“alignment of the executive reward 
structure with shareholders’ 
interests is central to our 
remuneration policy”
michael buzzacott
chairman of the 
remuneration 
committee 
52
scapa group plc  
annual report and accounts 2014 number of shares received further aligning the reward of executive 
management with shareholders’ interests
it is the policy of the remuneration committee to use sharebased incentives 
as a significant proportion of the executive reward structure in order to align 
the interests of the executive directors and senior executives with shareholders 
since the year end the remuneration committee reviewed the company’s 
eps growth over the threeyear period to 31 march 2014 to establish whether 
the performance criteria for vesting of awards made under the company’s 
performance share plan psp in 201 1 had been achieved the underlying eps 
growth over the period was below the threshold and the awards will not vest
key remuneration decisions for 2015
the remuneration committee has set the chief executive’s salary at 
£370000 with effect from 1 january 2014 an increase of 8 and the group 
finance director’s salary has been set at £228028 with effect from 1 june 
2014 an increase of 9 the committee considers these increases to be 
appropriate to retain and motivate the executive directors to drive forward  
the group’s aggressive growth agenda 
for the financial year ending 31 march 2015 the overall remuneration policy 
for the executive directors remains substantially unchanged the policy is 
summarised on page 54 remuneration consists of salary annual 
performance related bonus pension contribution longterm sharebased 
incentive schemes and benefits in kind in line with prior years the reward 
structure is designed to reward individual performance measured against 
challenging group metrics and to align the interests of executive directors 
with shareholders through the use of sharebased rewards as a significant 
proportion of the overall reward structure 
activities of the remuneration committee
during the year ended 31 march 2014 the committee met formally on six 
occasions and all members were present at each meeting the committee 
also conducted regular update calls and met informally on an ad hoc basis  
to review matters as required outside the formal meeting schedule the 
remuneration committee carried out the following activities during the year
• approval of the directors’ remuneration report for the year ended 
31 march 2013
• consideration of the outcome of the agm vote on the directors’ 
remuneration report for the year ended 31 march 2013
• consideration of remuneration benchmarking and corporate governance 
developments
• review and agreement of remuneration for the chief executive group 
finance director senior executives and senior managers
• assessment of the achievement of the performance of the chief executive 
group finance director senior executives and senior managers against 
their annual bonus objectives
• assessment of performance for the vesting of awards made under  
the 201 1 performance share plan
• agreement of the annual bonus and performance share plan awards  
for the year ended 31 march 2014
• recommendation of the introduction of mandatory shareholding 
requirements for all directors
• review of the revised remuneration reporting regulations and preparation 
of the directors’ remuneration report 
i hope that you will find the report clear and comprehensive i look forward to 
discussing the directors’ remuneration policy with our investors ahead of it 
being put to a binding vote the committee remains committed to ensuring that 
the directors’ remuneration structure is aligned to the interests of shareholders 
and is fair rewards success and is competitive in the marketplace to enable 
the group to attract and retain the best talent to drive the future profitable 
growth of the business for the continued benefit of all stakeholders  
m c buzzacott
chairman of the remuneration committee 
28 may 2014
strategic report 
governance
financial statements
company information
53
scapa group plc 
annual report and accounts 2014 remuneration committee
the role of the remuneration committee ‘the committee’ is to define the 
company’s executive remuneration principles and framework and to determine 
the total remuneration packages of the chief executive and group finance 
director and other senior executives the committee oversees the policy for 
remuneration of senior managers and determines long term incentive plans 
ltips for the executive directors senior executives and senior managers of 
the business the committee is responsible for determining recruitment terms 
and employment conditions and considers issues relating to termination of 
employment of any executive director senior executive or senior manager
the activities of the committee are governed by its terms of reference which 
are reviewed on an annual basis the committee’s terms of reference are 
published on our website wwwscapacomencorporategovernance 
the committee comprises three nonexecutive directors michael buzzacott 
richard perry and james wallace all of whom are determined by the board 
to be independent mr buzzacott chairs the committee no member of the 
committee has any financial interest other than as a shareholder and the fees 
paid to them as nonexecutive directors in the matters to be decided by the 
committee nor do they participate in any bonus schemes pension plans 
share awards or employee share schemes the members of the committee 
are not involved in the daytoday running of the company the company 
secretary acts as secretary to the committee 
the committee liaises with the chief executive regarding proposals 
concerning the remuneration of the group finance director and other senior 
executives the chief executive is not a member of the committee but is 
invited to attend meetings to make recommendations relating to the 
performance and remuneration of his direct reports the chief executive 
company secretary and group hr director are not present when the 
committee considers issues relating to their own remuneration 
remuneration principles for executive directors
this section of the directors’ remuneration report describes scapa’s 
forwardlooking remuneration policy for the chief executive and group 
finance director and explains how each element of the executive directors’ 
remuneration packages operates 
the main principles of the senior executive remuneration policy are set  
out below
• attract and retain high calibre executives in a competitive international 
market and remunerate executives fairly and responsibly
• motivate delivery of our key business strategies and encourage a strong 
performanceoriented culture
• reward achievement of stretching targets over the short and long term
• support both nearterm and longterm success and sustainable 
shareholder value
• align the business strategy and achievement of planned business 
objectives
• be compatible with the company’s risk policies and systems
• ensure that a significant proportion of remuneration is performance related
• link maximum payout to outstanding performance
• take into consideration the views of shareholders and best practice 
guidelines
it is important that the company attracts the right calibre of senior executive 
to deliver sustainable longterm success and implement its ambitious strategy 
for growth the committee seeks to maintain a balance between fixed and 
variable remuneration to encourage nearterm and longterm success and  
the creation of sustainable shareholder value our reward structure from 
executive directors to factory operatives is based on a common set of 
principles but the framework is altered as necessary to suit the needs of  
the business for the various employee groups across scapa although the 
committee does not consult with employees when drawing up the directors’ 
remuneration policy it does take into account the pay and conditions of 
employees across the wider group and uses executive remuneration 
benchmarking data from kpmg llp  which reflects the market position 
across aim and ftse small cap companies the committee considers the 
general level of salary increase across the group when considering salary 
increases for executive directors and takes into account a number of factors 
such as seniority impact on the business local practice and custom when 
making remuneration decisions the committee considers that the 
management population of the group which includes 29 employees 
excluding new starters during the year whose remuneration includes salary 
and performance related bonus is a suitable comparator group to compare 
the percentage change in remuneration for the chief executive with that of  
a wider employee group the committee considers that the group provides 
an appropriate and relevant metric against which the chief executive’s 
remuneration is to be compared 
fixed remuneration comprises salary pension and benefits variable pay 
includes annual bonus and ltip awards together fixed and variable 
remuneration comprise total remuneration for the executive directors  
the committee recognises that it may be necessary on occasion to  
use its discretion to make remuneration decisions outside the standard 
remuneration policy such as agreeing a signon payment to attract and 
retain particular individuals 
the committee is committed to seeking shareholder views when changes 
are made to remuneration arrangements and over the course of the last few 
years has consulted with shareholders on the introduction of annual bonus 
and ltip awards the launch in 201 1 of a savings related share option plan 
which is open to all uk employees and the share price related bonus scheme 
for the executive directors and leadership team hired before december 
2010 the annual remuneration report is put to shareholder vote at the 
company’s agm the views of shareholders are taken into account when 
formulating and applying the remuneration policy 
directors’ remuneration policy
54
scapa group plc  
annual report and accounts 2014 components of remuneration
the table below sets out the remuneration policy that we intend to apply subject to shareholder approval from 22 july 2014 the date of the agm at which the 
policy will be put to a binding shareholder vote
purpose operation maximum opportunity performance measures
salary
attract and retain the right 
calibre of senior executive 
required to support the 
longterm success of  
the business
provide the basis for a 
competitive remuneration 
package
determined by reference to market data
reflects individual experience skills and role
paid monthly
reviewed annually by the remuneration 
committee with any changes becoming 
effective on 1 january for the chief executive 
and 1 june for the group finance director
increases will be made at the 
discretion of the committee to take 
account of individual circumstances 
such as
• increase in responsibility
• development and performance  
in the role
• alignment to market level
none although overall 
performance of the individual 
is considered by the 
committee when setting and 
reviewing salaries annually
pension
provide a market competitive 
level of pension provision and 
allow executive directors to  
build longterm retirement 
savings
defined contribution based on a percentage  
of salary the rate of contribution for executive 
directors exceeds the rates for the broader 
employee population this reflects market 
practice for senior executives
the rate of contribution for any new  
executive director is benchmarked at  
the date of appointment 
directors may elect to take part of their pension 
contribution as salary
chief executive – 20 of salary
group finance director – 20  
of salary
no element other than salary is 
pensionable
none pension contribution is 
set at commencement of an 
individual’s contract
benefits
protect against risks and 
provide other benefits 
reflecting the international 
aspects of executive 
directors’ roles
car allowance paid monthly private medical 
insurance in the uk permanent health insurance 
and life assurance cover
the chief executive participates in a us 
contributory private medical insurance plan
set at a level which the 
remuneration committee considers 
is appropriate taking into account 
comparable roles in companies of  
a similar size and complexity and 
provides a sufficient level of benefit 
based on the role
the value of benefits in 2014 was 
£31293 for the chief executive  
and £15419 for the group  
finance director
none
55
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information purpose operation maximum opportunity performance measures
annual bonus
provide a direct link between 
measurable individual 
performance and rewards 
encourage the achievement  
of outstanding results aligned 
to the business strategy and 
achievement of planned 
business objectives
individual bonus decisions are based on 
executive directors’ performance during  
the year measured against group and  
personal objectives 
performance measures are both quantitative and 
qualitative and both financial and nonfinancial
bonus awards are made by the committee 
following discussions with the chairman for the 
chief executive’s bonus and the chief executive 
for the group finance director’s bonus
bonus awards are paid in cash or at the 
discretion of the committee a combination of 
cash and shares after the results of the group 
are audited the committee may elect to satisfy 
a part of the bonus in shares and match the 
number of shares received any shares issued  
in satisfaction of bonus shall be held for  
minimum period as the remuneration 
committee specifies
the value of any annual bonus is 
limited to a percentage of salary  
the current maximum percentage  
is 150 for both the chief executive 
and the group finance director if 
exceptional outperformance of 
targets is achieved
performance is assessed 
using specific metrics set by 
the remuneration committee 
including group operating 
profit improvement 
the measures and targets are 
set by the committee each 
year the measures that will 
apply for financial year 2015 
are set out in the directors’ 
annual remuneration report 
measures for future years will 
be described in the directors’ 
annual remuneration report 
for the relevant year 
long term incentive plan award
reward execution of scapa’s 
strategy and growth in 
shareholder value over  
a multipleyear period
longterm performance 
measurement discourages 
excessive risk taking and 
inappropriate shortterm 
behaviours and encourages 
executive directors and 
senior executives to take a 
longterm view by aligning 
their interests with those of 
shareholders
the ltip is designed to retain 
executive directors and  
senior executives over  
the performance period  
of the awards
ltip awards are made by the committee 
following discussion of recommendations made 
by the chairman for the chief executive’s award 
and the chief executive for the group finance 
director’s and senior executives’ awards
achievement of stretching performance 
measures determines whether and to what 
extent ltip awards will vest
awards vest three years after the date of the 
award subject to achievement of performance 
criteria at vesting the ltip awards are satisfied 
in scapa shares
awards will typically lapse on termination of 
employment although the committee may 
determine that awards may vest after termination 
of employment in accordance with the plan rules 
and taking into account performance during  
the date of grant and date of termination of 
employment
in the event of a change of control of the 
company awards shall vest and be exercisable
awards are made as a percentage of 
salary up to a maximum of 200 in 
the absence of exceptional 
circumstances which the committee 
considers warrant additional levels of 
award the psp awards will be 
granted at not more than 100 of 
salary each year 
performance is assessed 
against delivery of longterm 
financial performance existing 
awards vest against growth in 
eps alternative or additional 
criteria may be used to 
determine future rewards
directors’ remuneration policy continued
56
scapa group plc  
annual report and accounts 2014 purpose operation maximum opportunity performance measures
saye scheme
reward execution of scapa’s 
strategy and growth in 
shareholder value over  
a multipleyear period
all uk employees are eligible to join this savings 
related share option scheme which is approved 
by hm revenue and customs the company 
grants each participant an option to subscribe  
for scapa shares at an option price per share 
which is set at the commencement of the 
scheme the option price is at a discount  
to the market price on the date of grant
on a change of control of the company options 
shall be exercisable
participation limits are set by  
hm revenue and customs 
although the participation limit  
on saye schemes has been 
increased to £500 per month  
the limit applicable to the current 
saye scheme is £250 per month 
none
share price incentive plan 2010
reward the executive 
directors and other senior 
executives hired prior to 
december 2010 to achieve 
outstanding challenging and 
sustainable increase in 
shareholder value during  
a specific fiveyear period
at the date the scheme was 
introduced scapa’s share 
price was 145 pence
oneoff incentive scheme created when the 
share price was 145p in lieu of awards under the 
psps during a period when the company’s 
ability to issue awards under the psps was 
restricted by the low share price
limited to the executive directors and senior 
executives hired before december 2010
bonus awards triggered by scapa’s share price 
equalling or exceeding £100 and £150 are paid 
in cash or at the discretion of the committee a 
combination of cash and shares the committee 
may elect to satisfy a part of the bonus in shares 
and match the number of shares received any 
shares issued in satisfaction of bonus shall be 
held for such minimum period as the 
remuneration committee specifies
subject to achievement of 
performance criteria participants 
may receive an amount equal  
to 200 150 or 100 of  
annual salary 
subject to the midmarket 
price of scapa’s shares 
equalling or exceeding £100 
for 30 consecutive days in the 
fiveyear period commencing 
1 july 2010 the executive 
directors and certain senior 
executives will be rewarded 
with a payment equal to up  
to 12 months’ salary
subject to the midmarket 
price of scapa’s shares 
equalling or exceeding £150 
for 30 consecutive days in the 
fiveyear period commencing 
1 july 2010 the executive 
directors and certain senior 
executives will be rewarded 
with a further payment equal 
to up to 12 months’ salary
57
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information reward scenarios
18
16
14
12
10
08
06
04
02
0
group chief executive group finance director
on target minimum maximum
100
£048m
£086m
£142m
£029m
£051m
£085m
56 34
22
22 40
26
100
56 34
22
22 40
26
on target minimum maximum £m
■  fixed
■  annual variable
■  longterm incentive
purpose operation maximum opportunity performance measures
chairman and nonexecutive director fees
provide an appropriate  
reward to attract and retain 
high calibre individuals
neither the chairman nor any 
of the nonexecutive directors 
are entitled to a bonus or 
benefits and their fees are not 
performance related
the fee for the chairman reflects the level  
of commitment and responsibility of the role  
the fee is paid monthly in cash and is inclusive  
of all committee roles 
nonexecutive directors’ fees are set at a level 
that ensures the company can attract and retain 
individuals with the required skills experience 
and knowledge to enable the board effectively  
to carry out its duties nonexecutive directors’ 
remuneration comprises a base fee together with 
an additional fee for chairing one or more board 
committees and a further fee for the role of 
senior independent director 
set at a level which reflects the 
commitment and contribution 
expected from the chairman and 
nonexecutive directors and is 
appropriately positioned against 
comparable roles in companies  
of a similar size and complexity
actual fee levels are disclosed in  
the directors’ annual remuneration 
report for the relevant financial year
benchmarked externally from 
time to time as appropriate
recruitment remuneration arrangements
when recruiting a new executive director whether from within the 
organisation or externally the committee will take into consideration all 
relevant factors to ensure that remuneration arrangements are in the best 
interests of the company and its shareholders without paying more than is 
necessary to recruit an executive of the required calibre the committee will 
seek to align the remuneration package offered with the remuneration policy 
outlined above but retains discretion to make proposals on hiring which are 
outside the standard policy the committee may make awards on appointing 
an executive director to compensate for remuneration arrangements forfeited 
on leaving the previous employer in doing so the committee will consider  
all factors relevant to the forfeited arrangements such as the nature of the 
remuneration forfeited any performance conditions and time periods over 
which they would have vested and any compensatory awards will be on  
a comparable basis
illustrations of application of remuneration policy
the following table shows the different levels of remuneration payable to  
the executive directors at different levels of performance namely minimum 
on target and maximum the scenarios below do not take into account share 
price appreciation or dividends
on target is assumed to be an annual bonus equal to 33 of maximum and 
ltip award of 50 of maximum the maximum scenario is assumed to be 
the full payout of annual bonus of 150 of base salary and maximum vesting 
of ltip award ie 100 of base salary
director shareholding guidelines
all executive directors are expected to build up over a reasonable period from 
appointment and hold a minimum level of shareholding in the company equal 
to one year’s salary nonexecutive directors are expected to build up and hold 
a material level of shareholding within a reasonable period of appointment  
this is considered an effective way to align the interests of the directors and 
shareholders over the long term all directors in office during the year under 
review hold shares exceeding the director shareholding guidelines
current shareholdings of the directors are set out on page 64 of this report
directors’ remuneration policy continued
58
scapa group plc  
annual report and accounts 2014 executive director service contracts and  
termination payments
scapa’s executive director service contracts entitle the executive directors  
to the fixed elements of remuneration and to consideration for variable 
remuneration each year the contracts have a rolling oneyear term and are 
terminable by the company on 12 months’ written notice the company may 
terminate an executive director’s contract immediately with payments in lieu 
of notice equivalent to 12 months’ salary plus contractual entitlements there 
are no express provisions for compensation payable on early termination of 
an executive director’s contract as at the date of termination other than as  
set out above the committee will seek to mitigate the cost to the company 
while dealing fairly with each individual case the company may contribute  
to the reasonable legal fees of a director in relation to any agreement to  
cease employment
mr chae is required to give the company 12 months’ notice in writing to 
terminate his contract mr edwards is required to give the company six 
months’ notice in writing to terminate his contract
it is the policy of the company that all executive appointments to the board 
will have contract notice periods no longer than 12 months 
external appointments
it is the policy of the company which is reflected in the contract of 
employment that no executive director may accept any nonexecutive 
directorships or other appointments without the prior approval of the board 
any outside appointments are considered by the nominations committee or 
the board to ensure that they would not give rise to a conflict of interest it is 
the company’s policy that remuneration earned from any such appointment 
may be retained by the individual executive director
mr chae is a nonexecutive director of the hallé concerts society the 
position is not remunerated mr edwards is chairman of the trustees of  
the hallé retirement benefit scheme which is an unpaid position
remuneration policy for the chairman and  
nonexecutive directors 
the chairman and other nonexecutive directors are appointed under a letter 
of appointment for an initial term of three years subject to earlier termination 
by either party upon written notice in each case the letter of appointment 
may be extended by mutual consent the chairman and the nonexecutive 
directors are not contractually entitled to termination payments the letters  
of appointment cover such matters as duties time commitment and other 
business interests richard perry was appointed on 2 june 2005 and 
following three threeyear terms his appointment has been extended on an 
annual basis and his current term will expire on 31 may 2015 james wallace 
was appointed on 1 october 2007 and following two threeyear terms his 
appointment has been extended for a further threeyear period to 31 august 
2016 michael buzzacott was appointed on 1 march 2008 and following two 
threeyear terms his appointment has been extended for a further three years 
to 28 february 2017 
the remuneration committee determines the remuneration for the chairman 
and nonexecutive directors within the limits set in the company’s articles  
of association the fee for the chairman’s role takes into account the time 
commitment required for the role the skills and experience of the individual 
and market practice in comparable companies the chairman’s fee is 
currently set at £100000 per annum
the nonexecutive director fees policy is to pay a basic fee for membership 
of the board with additional fees for the senior independent director  
and chairmanship of a committee to take into account the additional 
responsibilities and time commitments of these roles the nonexecutive 
directors’ fee structure was reviewed during the year by the board the fee 
structure with effect from 1 may 2014 is as follows
• basic fee – £40000
• committee chairman fee – £5000
• senior independent director fee – £2000
59
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information directors’ annual remuneration report
where indicated the information provided in the following pages of this report has been audited by deloitte llp 
single figure for total remuneration audited information
the following table sets out the single figure for total remuneration for directors for the financial years ended 31 march 2013 and 2014
salaryfees 
£
benefits
1 
 
£
bonus
2
  
£
share price 
incentive bonus  
£
psp awards
3
 
£
pension 
 £
total 
£
total 
£
director 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013 2014 2013
executive 
directors
h r chae 347500 321250 31293 31582 350711 267113 370000 – – 309000 69500 65000 1169004 993945
p edwards 209200 190182 15419 14832 211101 157128 209200 – – – 41840 38036 686760 400178
nonexecutive 
directors 
j a s wallace 100000 100000 – – – – – – – – – – 100000 100000
r j perry 42000 42000 – – – – – – – – – – 42000 42000
m c buzzacott 40000 40000 – – – – – – – – – – 40000 40000
notes
 includes fees as chairman of the audit and risk committee
1
 benefits include all tax assessable benefits arising from the individual’s employment including car allowance private healthcare and permanent health insurance
2
 bonus payments include amounts for previous period for h r chae this includes £3211 2013 £26175 and for p edwards this includes £1901 2013 £14490
3
  the 2014 psp value is based on psp award due to vest against performance in the three years ended 31 march 2014 further information about the level of vesting  
is included in the additional disclosures below
longterm incentives
performance share plan 
the company adopted a psp in 2004 which was replaced in 201 1 by a new 
psp adopted by the company at the agm mr chae holds 400000 vested 
and unexercised options under the 2004 psp  having exercised his option 
over 100000 shares in december 2012 all other awards under the 2004 
psp have lapsed since 201 1 all psp awards have been made under the 
201 1 psp
psp is the main longterm incentive for executives and is designed to 
encourage participants to deliver sustained profitable growth and enhanced 
shareholder value the policy of granting awards based on 100 of salary  
is expected to be applied to the awards to the executive directors and other 
senior executives in the financial year ending 31 march 2015 the single 
performance criterion used in the psp is trading eps which the committee 
believes is a fair and appropriate condition for rewarding senior executives as 
it aligns their interests with those of shareholders and being measured over  
a threeyear period aligns the reward with the company’s strategy for growth 
by encouraging longerterm profitable growth when determining the trading 
eps growth the impact of material acquisitions disposals and changes in the 
issued share capital will be disregarded to ensure that they do not artificially 
impact the eps measurement
additional disclosures for single figure for total 
remuneration to 31 march 2014
salary
the chief executive’s salary from 1 april to 31 december 2013 was £340000 
on an annualised basis and was increased by 8 to £370000 per annum 
with effect from 1 january 2014 reflecting the continued success of the 
group and his track record in the role the group finance director received 
an increase of 10 from 1 june 2013 to reflect his strong personal 
performance in the role and his leadership the committee believes that the 
increases awarded to the executive directors are fair and in line with the good 
performance of the group in the year under review and the continuing strong 
performance and leadership of the individuals 
pension contributions
the company pays contributions to the nominated personal pension plans 
of the executive directors at a rate equal to 20 of salary 
annual performance bonus
the 2014 bonus for the executive directors and senior executives was based 
on growth in the group’s operating profit measured against prior year the 
actual target range has not been disclosed as the board considers this to  
be commercially sensitive information the actual bonuses awarded to each 
executive director and senior executive were 100 of maximum potential 
bonus for the year
60
scapa group plc  
annual report and accounts 2014 performance share plan
awards granted in 2011 audited information
the psp award in 201 1 was based on eps growth over the threeyear period 
ending 31 march 2014 the table below sets out achievement against targets 
for the eps measure
eps target 
p
award 
vesting  

underlying 
eps achieved 
p
resulting level 
of award  
of maximum 
opportunity
101 50 72 nil
111 75 72 nil
121 100 72 nil
none of the psp awards granted in 201 1 vested
awards granted in 201314 audited information
the following psp awards were made in the year to 31 march 2014
director
number 
of shares 
awarded vesting date
h r chae 425000 23 july 2016
p edwards 262500 23 july 2016
notes 
– no variations were made to the terms of the awards in the year
–  the market price of a share on 23 july 2013 being the date on which the awards 
were made was 840p
– the performance conditions for awards made in 2012 and 2013 are set out below
these psp awards are subject to a single performance criterion of growth 
in eps over the threeyear period ending 31 march 2016 as shown in the 
table below
adjusted eps growth  
over the threeyear period
proportion of 
award vesting
less than rpi 25 no vesting
rpi 25 25
rpi 40 100
note straightline vesting occurs between these points
the value of the psp awards based on the market price of the company’s 
shares on the day prior to the date of grant does not exceed 100 of the 
base salary of the executive director or senior executive to whom the award 
has been made
dilution limits
the company’s share plans comply with current abi guidelines which 
provide that overall dilution under all plans should not exceed 10 over a 
10year period in relation to the company’s issued share capital and a further 
limitation of 5 in any 10year period on executive share plans on the 
assumption that all outstanding awards vest and will be exercised and 
including all exercised awards as at 31 march 2014 the company will have 
utilised 53 of the 10 in 10 years and 48 of 5 in 10 years 
share price incentive plan 2010
in may 2010 the company introduced a oneoff share price based incentive 
scheme ‘the scheme’ for the executive directors and senior executives in 
lieu of granting awards under the psp during a period when the company’s 
price was at a historical low and there was insufficient headroom to grant 
meaningful sharebased incentives
the performance criteria applicable to the scheme are as follows
• that the midmarket price of the company’s shares exceeds £100 during 
consecutive 30 days during the fiveyear period commencing 1 july 2010
• that the midmarket price of the company’s shares exceeds £150 during 
consecutive 30 days during the fiveyear period commencing 1 july 2010
the first performance criterion was met during the financial year ended 
31 march 2014 and payments were made to the executive directors and 
certain senior executives the payments made to the chief executive and  
the group finance director are included in the table on page 60 a further  
payment will be payable under the terms of the scheme if the midmarket 
price of the company’s shares exceeds £150 for 30 consecutive days prior 
to 30 june 2015 
61
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information change in remuneration of chief executive compared 
to group employees
the table below sets out the increase in total remuneration of the chief 
executive and that of the senior management team which comprises  
29 employees excluding new starters during the year
percentage change  
in remuneration  
in 2013 compared with  
remuneration in 2014
chief 
executive
senior 
management 
team
salaryfees 82 60
benefits 09 01
annual bonuses 442 515
total weighted 223 151
the committee has selected the senior management team as the most 
relevant comparator group taking into account the structure of remuneration 
and ability of the senior management team to earn a bonus in addition to 
receiving a base salary
total shareholder returns
the graph below shows the company’s total shareholder returns tsr 
compared to the ftse aim all share index over the last five years tsr  
is defined as share price growth plus reinvested dividends the directors 
consider the ftse aim all share index to be the most appropriate index 
against which the tsr of the company should be measured because it  
is an index of similar size companies to scapa group plc
0
200
400
600
800
1000
1200
1400
1600
value if £100 invested at 22 march 2009
01042009
scapa ftse aim all share
01042010 01042011 01042012 01042013 01042014
historical chief executive remuneration
the table below summarises the chief executive single figure for total remuneration outcomes over the last five years
h r chae 2010 2011 2012 2013 2014
chief executive single figure of remuneration £ 189238 521973 598288 993945 1169004
annual bonus payout  of maximum opportunity 0 61 66 76 100
ltip vesting  maximum opportunity na na na 100 0
directors’ annual remuneration report continued
saye scheme audited information
the outstanding options granted to each director as at 31 march 2014 are as follows
director
shares under 
option at  
31 march 2013
granted during 
the year
exercised 
during the year
lapsed during 
the year
shares under 
option at  
31 march 
2014
date 
exercisable
h r chae 21126 – – – 21126 1 march 2015
p edwards 21126 – – – 21126 1 march 2015
note these options granted under an allemployee share scheme are not subject to performance conditions
62
scapa group plc  
annual report and accounts 2014 directors’ service contracts
the following table sets out the details of the service contracts and letters of appointment for the directors who were in office during the year under review
director
effective date of service 
contractletter of appointment
unexpired term at  
31 march 2014 notice period
executive directors
h r chae 7 september 2009 rolling oneyear basis 12 months
p edwards 20 september 2010 rolling oneyear basis
12 months by company
6 months by mr edwards
nonexecutive directors
j a s wallace 30 august 2007 2 years 5 months 12 months
r j perry 2 june 2005 1 year 2 months 1 month
m c buzzacott 1 march 2008 2 years 11 months 3 months
statement of shareholder voting
the results of the vote on the remuneration report at the company’s 2013 agm are set out in the table below
votes cast votes for votes against votes withheld
number number  number  number
80186947 79024118 9959 328264 041 834565
relative importance of spend on pay
the table below sets out the actual expenditure of the company and difference in spend in 2013 and 2014 on total pay costs of the group’s employees 
trading profit before income tax and distributions to shareholders
for the year to 
31 march 2014
£m
for the year to 
31 march 2013
£m  change
total employee pay 573 537 7
trading profit 155 137 13
dividend 07 – 100
63
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information directors’ annual remuneration report continued
loss of office payments
loss of office payments are made in line with a director’s individual  
service contract no loss of office payments were made during the year  
no payments have been made to the directors that are not included in  
the single figure of remuneration set out above
movements in share price during the year
the midmarket price of the company’s shares at the end of the financial year 
was £1 16 and the range of midmarket prices during the year was between 
£068 and £1 16
advice received by the committee
the committee has access to advice when it considers appropriate in the  
year ended 31 march 2014 the committee received material assistance and 
advice from the group hr director the committee also received executive 
remuneration market data from kpmg llp and towers watson data services 
who were paid £6000 and £2880 respectively for the data provided
statement of implementation of remuneration policy 
in the following financial year
components of remuneration
effective from 1 january 2014 the salary of the chief executive is £370000 
and will be reviewed with effect from 1 january 2015 
the salary of the group finance director is £228028 with effect from 
1 june 2014 
pension and benefits are in line with policy 
there was no change to the maximum opportunity under the company’s 
annual bonus plan the performance measures remain growth in group 
directors’ shareholdings and interests in shares
the following table sets out the shareholdings and beneficial interests of the directors and their connected persons in scapa’s shares as at 31 march 2014
31 march 2014 31 march 2013
shares saye performance share plan shares saye performance share plan
h r chae 500709 201112 21126 200910 400000 490709 201112 21126 200910 400000
201011 – 201011 –
201112 – 201112 300000
201213 1000000 201213 1000000
201314 425000
p edwards 259742 201112 21126 201011 – 250000 201112 21126 201011 –
201112 – 201112 150000
201213 570543 201213 570543
201314 262500
j a s wallace 840000 840000
r j perry 350000 350000
m c buzzacott 250000 240000
2200451 42252 2658043 2170709 42252 2420543
operating profit targets are not disclosed as the board considers the nature 
of that information to be commercially sensitive 
there was no change in the maximum psp opportunity for the executive 
directors awards of 100 of salary are expected to be made in 2015 
performance will be assessed against growth in eps over the threeyear 
period ending 31 march 2017  as follows
adjusted eps growth over  
the threeyear period proportion of award vesting
less than rpi 25 no vesting
rpi 25 25
rpi 40 100
note straightline vesting occurs between these points
nonexecutive directors will be paid a base fee of £40000 per annum with effect 
from 1 may 2014 plus £5000 for chairing a board committee and £2000 for 
the senior independent director the chairman’s fee will remain at £100000 
per annum which includes a fee for chairing the nominations committee
this remuneration report was approved by a duly authorised committee  
of the board of directors on 21 may 2014 and signed on its behalf by
m c buzzacott
chairman of the remuneration committee
28 may 2014
64
scapa group plc  
annual report and accounts 2014 directors’ report
other disclosures
pages 65 to 67 inclusive together with sections of the annual report 
incorporated by reference constitute a directors’ report that has been drawn 
up and presented in accordance with applicable english company law and 
the liabilities of the directors in connection with that report are subject to the 
limitations and restrictions provided by that law
principal activities and business review
scapa group plc is the holding company for a global group of companies 
operating in the manufacture of bonding materials and solutions a review 
of the performance and future development of the group’s business is 
contained on pages 1 to 36 and forms part of this report
results and dividends
trading profit was £155m 2013 £137m an increase of £18m exceptional 
credit items in the year were £02m 2013 £1 1m no interim dividend was 
paid to shareholders 2013 £nil the directors recommend payment of a final 
dividend of 10p 2013 05p
a profit before tax of £1 12m 2013 £96m was recorded for the year ended 
31 march 2014 with basic and diluted loss per share of 46p and 44p 
respectively 2013 08p and 08p earnings respectively
going concern
in presenting the annual and interim financial statements the directors aim to 
present a balanced and understandable assessment of the group’s position 
and prospects after making enquiries the directors have a reasonable 
expectation that the group has adequate resources to continue in operational 
existence for the foreseeable future in arriving at this conclusion the directors 
have considered the committed facility and assume that the facility can be 
operated as contracted for the foreseeable future because there is sufficient 
headroom in the facility covenants in performing this analysis the directors 
reviewed downside sensitivity analysis over the forecast period thereby taking 
into account the uncertainties arising from the current economic climate  
the group continues to adopt the going concern basis in preparing the 
financial statements
annual general meeting
the annual general meeting will be held on 22 july 2014 at the village hotel 
pamir drive ashtonunderlyne tameside manchester ol7 0pg details of 
the business to be considered at the annual general meeting and the notice 
of meeting are included in a separate document
share capital 
details of the issued share capital together with details of the movements in 
the company’s issued share capital during the year are shown in note 1 1 to 
the company financial statements on page 127  the company has one class 
of ordinary shares which carry no right to fixed income each ordinary share 
carries the right to one vote at general meetings of the company 
there are no specific restrictions on the size of a holding nor on the transfer 
of shares which are both governed by the general provisions of the articles 
of association and prevailing legislation the directors are not aware of any 
agreements between holders of the company’s shares that may result in 
restrictions on the transfer of securities or on voting rights
no person has any special rights of control over the company’s share capital 
and all issued shares are fully paid 
subject to the provisions of the company’s articles of association and the 
companies act 2006 at a general meeting of the company the directors 
may request authority to allot shares and the power to disapply preemption 
rights and the authority for the company to purchase its own ordinary shares 
in the market the board requests such authority at each annual general 
meeting details of the authorities to be sought at the annual general meeting 
on 22 july 2014 are set out in the notice of annual general meeting
share options
details of the company’s share capital and options over the company’s 
shares under the company’s employee share plans are given in note 27  
of the accounts
purchase of own shares
at the forthcoming annual general meeting the directors will once again 
seek shareholders’ approval by way of special resolution for the grant of  
an authority for the company to make market purchases of its own shares 
the authority sought will relate to up to approximately 10 of the issued share 
capital and will continue until the company’s next annual general meeting 
the directors consider that the grant of the power for the company to make 
market purchases of the company’s shares would be beneficial for the 
company and accordingly they recommend this special resolution to 
shareholders the directors would only exercise the authority sought if they 
believed such purchase was likely to result in an increase in earnings per 
share and it would be in the interests of shareholders generally the minimum 
price to be paid will be the shares’ nominal value of 5p and the maximum 
price will be no more than 5 above average middle market quotations for 
the shares on the five days before the shares are purchased
significant agreements change of control
all of the company’s current share plans contain provisions relating to 
a change of control on a change of control outstanding awards would 
normally vest and become exercisable subject to the satisfaction of any 
performance conditions at that time
the directors are not aware of any agreements between the company and 
its directors or employees that provide for compensation for loss of office  
on a change of control
takeover directive
the company has only one class of ordinary share and these shares have 
equal voting rights the nature of individual directors’ holdings is disclosed 
on page 64 there are no other significant holdings of any individual
65
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information board of directors
the names of the present directors and their biographical details are shown 
on pages 38 and 39
at the annual general meeting to be held on 22 july 2014 paul edwards 
group finance director richard perry senior independent director and 
michael buzzacott nonexecutive director will offer themselves for 
reelection
appointment and replacement of directors
with regard to the appointment and replacement of directors the company  
is governed by its articles of association the uk corporate governance code 
the companies act 2006 and related legislation the articles themselves  
may be amended by special resolution of the shareholders the powers of 
directors are described in the articles of association which can be found  
at wwwscapacomencorporategovernance and the corporate 
governance statement on page 40
employees and employment policies
scapa is committed to the principle of equal opportunity in employment and 
to ensuring that no applicant or employee receives less favourable treatment 
on the grounds of gender marital status age race colour nationality ethnic 
or national origin religion disability sexuality or unrelated criminal convictions
scapa applies employment policies which are believed to be fair and 
equitable and which ensure that entry into and progression within the 
company is determined solely by application of job criteria and personal 
ability and competency 
scapa aims to give full and fair consideration to the possibility of employing 
disabled persons wherever suitable opportunities exist employees who 
become disabled are given every opportunity and assistance to continue  
in their positions or be trained for other suitable positions
scapa recognises the importance of good communications with employees 
and acknowledges that there should be clear channels of communication 
and opportunities for consultation and dialogue on issues which affect both 
business performance and employees’ working lives as a global business 
the mechanisms for achieving this aim vary between different countries and 
between different businesses within the group but include inhouse 
newsletters bulletins and briefing sessions
scapa has a combination of unionised and nonunionised operations across 
the world and is committed to fostering positive employee relations at all of its 
locations training and links with the educational sector reinforce scapa’s 
commitment to employee involvement and development
the sharesave share option plan gives the opportunity to all uk employees 
with qualifying service to participate in the equity of the company as at 
31 march 2014 59 employees were members of the scheme with 598036 
options over shares these include the executive directors
business ethics
the company requires compliance by its subsidiaries and employees with 
the laws and standards of conduct of the countries in which it does business 
this includes legislation implementing anticorruption and competition law 
compliance employees are required to avoid conflicts of interest regarding 
company business to act lawfully and ethically and to be responsible for 
communicating in good faith any noncompliance issues of which they 
become aware
the company and all senior employees are formally subscribed to a code 
of conduct to document and confirm such compliance
greenhouse gas emissions
information regarding the company’s use of greenhouse gas emissions is 
described in the sustainability report on page 35
research and development
the group’s spend on research and development is disclosed in note 3 and 
is focused on developing new derivative product applications for addressing 
and resolving customer and market requirements
financial risk management
the group’s approach to managing financial risk is covered in note 23
political donations
no political donations were made during the year 2013 £nil
auditor 
so far as each director is aware there is no relevant audit information of 
which the company’s auditor is unaware each director has taken all the 
steps that they ought to have taken as a director in order to make themselves 
aware of any relevant audit information and to establish that the company’s 
auditor is aware of that information
the auditor deloitte llp  has indicated its willingness to continue in office  
and a resolution that they be reappointed will be proposed at the annual 
general meeting
uk corporate governance code
the company’s statement on corporate governance can be found in  
the corporate governance report on pages 40 to 45 the corporate 
governance report forms part of this directors’ report and is incorporated 
into it by crossreference
 
by order of the board 
r l smith
company secretary
28 may 2014
registered office
manchester road
ashtonunderlyne
greater manchester ol7 0ed
directors’ report continued
66
scapa group plc  
annual report and accounts 2014 directors’ responsibilities
the directors are responsible for preparing the annual report and the 
financial statements in accordance with applicable law and regulations
company law requires the directors to prepare such financial statements  
for each financial year under that law the directors are required to prepare 
the group financial statements in accordance with international financial 
reporting standards ifrss as adopted by the european union and article 4 
of the ias regulation and have elected to prepare the parent company 
financial statements in accordance with united kingdom generally accepted 
accounting practice united kingdom accounting standards and applicable 
law under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair view of the 
state of affairs of the company and of the profit or loss of the company for 
that period in preparing the parent company financial statements the 
directors are required to
• select suitable accounting policies and then apply them consistently
• make judgements and accounting estimates that are reasonable 
and prudent
• state whether applicable uk accounting standards have been followed 
subject to any material departures disclosed and explained in the 
financial statements
• prepare the financial statements on the going concern basis unless it is 
inappropriate to presume that the company will continue in business
in preparing the group financial statements ias 1 requires that directors
• properly select and apply accounting policies
• present information including accounting policies in a manner that 
provides relevant reliable comparable and understandable information
• provide additional disclosures when compliance with the specific 
requirements in ifrss are insufficient to enable users to understand the 
impact of particular transactions other events and conditions on the 
entity’s financial position and financial performance and
• make an assessment of the company’s ability to continue as a 
going concern
the directors are responsible for keeping adequate accounting records that 
are sufficient to show and explain the company’s transactions and disclose 
with reasonable accuracy at any time the financial position of the company 
and enable them to ensure that the financial statements comply with the 
companies act 2006 they are also responsible for safeguarding the assets 
of the company and hence for taking reasonable steps for the prevention  
and detection of fraud and other irregularities
the directors are responsible for the maintenance and integrity of  
the corporate and financial information included on the company’s  
website legislation in the united kingdom governing the preparation  
and dissemination of financial statements may differ from legislation  
in other jurisdictions
directors’ responsibility statement 
we confirm that to the best of our knowledge
• the financial statements prepared in accordance with the relevant financial 
reporting framework give a true and fair view of the assets liabilities 
financial position and profit or loss of the company and the undertakings 
included in the consolidation taken as a whole
• the strategic report includes a fair review of the development and 
performance of the business and the position of the company and the 
undertakings included in the consolidation taken as a whole together with 
a description of the principal risks and uncertainties that they face and
• the annual report and financial statements taken as a whole are fair 
balanced and understandable and provide the information necessary  
for shareholders to assess the company’s performance business  
model and strategy
by order of the board
 
h r chae p edwards
group chief executive  group finance director
28 may 2014 28 may 2014
67
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information independent auditor’s report  
to the members of scapa group plc 
opinion on financial statements 
of scapa group plc
in our opinion the financial statements
• give a true and fair view of the state of the group’s affairs as at 31 march 2014 and of its loss for the 
year then ended
• have been properly prepared in accordance with international financial reporting standards ifrss 
as adopted by the european union and
• have been prepared in accordance with the requirements of the companies act 2006
the financial statements comprise the consolidated income statement the consolidated statement  
of comprehensive income the consolidated and parent company balance sheet the consolidated 
statement of changes in equity the consolidated cash flow statement the group and parent 
company accounting policies the related consolidated notes 1 to 31 and the parent company notes  
1 to 15 
the financial reporting framework that has been applied in their preparation is applicable law and ifrss 
as adopted by the european union the financial reporting framework that has been applied in the 
preparation of the parent company financial statements is applicable law and united kingdom 
accounting standards united kingdom generally accepted accounting practice
going concern we have reviewed the directors’ statement on page 65 that the group is a going concern we confirm 
that
• we have concluded that the directors’ use of the going concern basis of accounting in the preparation 
of the financial statements is appropriate and
• we have not identified any material uncertainties that may cast significant doubt on the group’s ability 
to continue as a going concern
however because not all future events or conditions can be predicted this statement is not a guarantee 
as to the group’s ability to continue as a going concern
our assessment of risks of material 
misstatement
the assessed risks of material misstatement described below are those that had the greatest effect 
on our audit strategy the allocation of resources in the audit and directing the efforts of the 
engagement team
risk how the scope of our audit responded to the risk
inventory valuation
this risk concerns the appropriateness of the 
valuation of inventory as disclosed in note 17  
the calculation to determine the standard cost 
of inventory is complex in particular the 
judgements involved in the calculation of 
overhead absorption rates in work in progress 
and finished goods judgement is also needed 
to calculate the level of inventory provisions for 
aged obsolete andor damaged stock to ensure 
that the inventory held by the group is held at 
the lower of cost and net realisable value in line 
with the requirements of ias 2
we have assessed the design and implementation of the controls around the standard costing process 
within the group over raw materials work in progress finished goods and inventory ageing
we have selected a sample of items in inventory at year end and confirmed that they have been valued 
at the lower of cost and net realisable value by reference to post year end sales in addition we have 
challenged the appropriateness of the group’s inventory provisioning policy by assessing inventory 
ageing profiles and comparing the historical levels of write offs against the amounts provided 
we also attend year end inventory counts at which along with other procedures we assess the 
condition of inventory to evaluate the adequacy of inventory provisions for obsolete and damaged goods
68
scapa group plc  
annual report and accounts 2014 risk how the scope of our audit responded to the risk
deferred taxation
the tax risk concerns the judgements and 
estimates applied in the determination of the 
deferred tax balances in particular in relation to 
the recognition of deferred tax assets for tax 
losses and timing differences across the group 
as disclosed in note 9 this process is highly 
judgemental and is based on assumptions 
about future profitability mainly in the uk 
and us
in conjunction with our own tax audit specialists we have recalculated the deferred tax workings 
considered and challenged the appropriateness of management’s assumptions relating to future 
profitability in the relevant jurisdictions by evaluating trading forecasts compared with actual results  
in the current year and considered estimates in relation to the likelihood of generating future taxable 
profits to support the recognition of deferred tax assets
retirement benefits
this risk concerns the appropriateness of 
actuarial assumptions in calculating the group’s 
ias 19 liability and the disclosures in the financial 
statements the valuation of the group’s ias 19 
deficit involves significant judgement as 
described in note 25 in particular in relation  
to the discount rate inflation and mortality 
assumptions 
we have considered the appropriateness of the disclosures and assumptions underpinning the valuation 
of pension scheme assets and liabilities provided by the group’s actuary specifically we challenged the 
discount rate inflation and mortality assumptions applied in calculating the scheme liabilities by using  
our internal pension specialists to assess and benchmark the assumptions applied against comparable 
third party data we have assessed the competency of the group’s actuary and ensured that the 
requirements of ifrs are met in accounting for the features of the pension especially in light of the 
changes to ias 19
carrying value of goodwill and investments in subsidiaries
the impairment risk relates to the significant 
judgments and estimates required in calculating 
the discounted future cash flows of each of the 
relevant cashgenerating units which support 
the value of the goodwill balance as described  
in note 13 and the investments in subsidiaries  
in the parent company’s balance sheet as 
described in note 5 with particular attention to 
cash flow growth rates discount rates and 
sensitivity assumptions
we challenged the assumptions used in management’s impairment model for goodwill and investments 
as part of our procedures we test the clerical accuracy of the models and ensure that they have been 
prepared on a consistent basis with the prior year we also considered historical trading performance by 
comparing recent growth rates of both revenue and operating profit across the group’s geographical 
and market segments assessing the appropriateness of the assumptions concerning growth rates and 
inputs to the discount rate against latest market expectations in performing our procedures we used 
internal valuation specialists and third party evidence to assess the appropriateness of the discount  
rates applied
we have reviewed the disclosures in the financial statements around the goodwill impairment tests to 
ensure that they comply with ias 36 ‘impairment of assets’ in particular in relation to the growth rates  
and discount rates used as part of the model
the audit and risk committee’s consideration of these risks is set out on page 47 
our audit procedures relating to these matters were designed in the context of our audit of the financial 
statements as a whole and not to express an opinion on individual accounts or disclosures our opinion 
on the financial statements is not modified with respect to any of the risks described above and we do 
not express an opinion on these individual matters
69
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information independent auditor’s report  
to the members of scapa group plc continued
our application of materiality we define materiality as the magnitude of misstatement in the financial statements that makes it 
probable that the economic decisions of a reasonably knowledgeable person would be changed or 
influenced we use materiality both in planning the scope of our audit work and in evaluating the results 
of our work
we determined materiality for the company to be £831000 which is based on 7 4 of pretax profit and 
17 of shareholders equity 
we agreed with the audit and risk committee that we would report to the committee all audit 
differences in excess of £50000 as well as differences below that threshold that in our view warranted 
reporting on qualitative grounds we also report to the audit and risk committee on disclosure matters 
that we identified when assessing the overall presentation of the financial statements
an overview of the scope of our audit given the nature of the group’s corporate structure where all evidence relating to each component is 
compiled at the group’s head office the group audit team undertake all the audit work for the majority 
of significant components in addition the group audit team performs the audit work in the us and 
canadian locations and this work is performed by visiting the components
the structure of the group’s finance function is such that certain transactions are accounted for at the 
central european shared service centre based in the united kingdom where we centralised elements 
of our audit work with the remainder accounted for in the operating units or at consolidation level the 
group audit team performed all work at the central european shared service centres including where 
that work related to the full scope components not audited wholly by the group team
our group audit was scoped by obtaining an understanding of the group and its environment including 
groupwide controls and assessing the risks of material misstatement at the group level based on that 
assessment we focused our group audit scope primarily on the audit work at nine locations our audit 
work at all nine locations was executed at levels of materiality applicable to each individual entity which 
were lower than group materiality 
seven of these locations were subject to a full audit whilst the remaining two were subject to an audit 
of specified account balances where the extent of our testing was based on our assessment of the risks 
of material misstatement and of the materiality of the group’s operations at those locations
the group audit team undertook all the audit work on five of the seven full scope component audits 
including the most significant components which are based in the uk the us and canada the work on 
all these components was led by the senior statutory auditor in terms of the two significant components 
that the group audit team did not audit we included the component audit teams in our team briefing 
discussed their risk assessment and reviewed documentation of the findings from their work
the locations which were subject to a full scope audit represent the principal business units and account 
for 94 of the group’s revenue 91 of the group’s net assets and 108 of the group’s profit before  
tax offset on consolidation by losses elsewhere in the group they were also selected to provide an 
appropriate basis for undertaking audit work to address the risks of material misstatement identified 
above the two locations subject to more limited audit procedures cover a further 28 of the group’s 
revenue and 1 of net assets
at the parent entity level we also tested the consolidation process and carried out analytical procedures 
to confirm our conclusion that there were no significant risks of material misstatement of the aggregated 
financial information of the remaining components not subject to audit or audit of specified account 
balances
opinion on other matters prescribed by 
the companies act 2006
in our opinion the information given in the strategic report and the directors’ report for the financial year 
for which the financial statements are prepared is consistent with the financial statements
70
scapa group plc  
annual report and accounts 2014 matters on which we are required to report by exception
adequacy of explanations received and 
accounting records
under the companies act 2006 we are required to report to you if in our opinion
• we have not received all the information and explanations we require for our audit or
• adequate accounting records have not been kept or returns adequate for our audit have not been 
received from branches not visited by us or
• the financial statements are not in agreement with the accounting records and returns
we have nothing to report in respect of these matters
directors’ remuneration under the companies act 2006 we are also required to report if in our opinion certain disclosures of 
directors’ remuneration have not been made we have nothing to report arising from this matter
our duty to read other information in the 
annual report
under international standards on auditing uk and ireland we are required to report to you if in our 
opinion information in the annual report is
• materially inconsistent with the information in the audited financial statements or
• apparently materially incorrect based on or materially inconsistent with our knowledge of the 
company acquired in the course of performing our audit or
• otherwise misleading
in particular we are required to consider whether we have identified any inconsistencies between our 
knowledge acquired during the audit and the directors’ statement that they consider the annual report  
is fair balanced and understandable and whether the annual report appropriately discloses those 
matters that we communicated to the audit and risk committee which we consider should have been 
disclosed we confirm that we have not identified any such inconsistencies or misleading statements
other matters in our opinion the part of the directors’ remuneration report to be audited has been properly prepared 
in accordance with the provisions of the companies act 2006 that would have applied were the 
company a quoted company
although not required to do so the directors have voluntarily chosen to make a corporate governance 
statement detailing the extent of their compliance with the uk corporate governance code we 
reviewed the part of the corporate governance statement relating to the company’s compliance with 
nine provisions of the uk corporate governance code we have nothing to report arising from 
our review
71
scapa group plc 
annual report and accounts 2014
strategic report 
governance
financial statements
company information independent auditor’s report  
to the members of scapa group plc continued
respective responsibilities of directors 
and auditor
as explained more fully in the directors’ responsibilities statement the directors are responsible for 
the preparation of the financial statements and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the financial statements in accordance with 
applicable law and international standards on auditing uk and ireland those standards require us 
to comply with the auditing practices board’s ethical standards for auditors we also comply with 
international standard on quality control 1 uk and ireland our audit methodology and tools aim to 
ensure that our quality control procedures are effective understood and applied our quality controls 
and systems include our dedicated professional standards review team and independent 
partner reviews
this report is made solely to the company’s members as a body in accordance with chapter 3 of 
part 16 of the companies act 2006 our audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to them in an auditor’s report andor those 
further matters we have expressly agreed to report to them on in our engagement letter and for no other 
purpose to the fullest extent permitted by law we do not accept or assume responsibility to anyone 
other than the company and the company’s members as a body for our audit work for this report  
or for the opinions we have formed
scope of the audit of the  
financial statements
an audit involves obtaining evidence about the amounts and disclosures in the financial statements 
sufficient to give reasonable assurance that the financial statements are free from material misstatement 
whether caused by fraud or error this includes an assessment of whether the accounting policies are 
appropriate to the company’s circumstances and have been consistently applied and adequately 
disclosed the reasonableness of significant accounting estimates made by the directors and the overall 
presentation of the financial statements in addition we read all the financial and nonfinancial information 
in the annual report to identify material inconsistencies with the audited financial statements and to 
identify any information that is apparently materially incorrect based on or materially inconsistent with 
the knowledge acquired by us in the course of performing the audit if we become aware of any apparent 
material misstatements or inconsistencies we consider the implications for our report
patrick loftus senior statutory auditor
for and on behalf of deloitte llp 
chartered accountants and statutory auditor 
manchester 
28 may 2014
72
scapa group plc  
annual report and accounts 2014 consolidated income statement 
for the year ended 31 march 2014 
73 
scapa group plc 
annual report and accounts 2014 
 
all on continuing operations 
 
note 
year ended  
31 march  
2014 
 
£m 
year ended 
31 march 
2013
restated 
£m 
 
 
revenue 1 2261 2088 
 
 
operating profit 1 3 134 117 
 
 
trading profit 
 
155 137 
 
 
amortisation of intangible assets 
 
15 15
 
 
exceptional items  4 02 11 
 
 
pension administration costs 
 
08 16
 
 
operating profit 
 
134 117 
 
 
finance costs 8 22 21
 
 
profit on ordinary activities before tax 
 
112 96 
 
 
taxation on operating activities 
 
44 49
 
 
taxation on exceptional items and pension administration costs 
 
04 32
 
 
exceptional deferred tax write off 
 
113 – 
 
 
impact of change in tax rate on deferred tax 
 
18 03
 
 
taxation charge 9 179 84
 
 
lossprofit for the year 
 
67 12 
 
 
weighted average number of shares 10 1464 1461 
 
 
basic lossearnings per share p 10 46 08 
 
 
diluted lossearnings per share p 10 44 08 
 
 
underlying earnings per share p 10 72 55 
 
consolidated statement of comprehensive income 
for the year ended 31 march 2014 
the notes on pages 77 to 117 form part of these accounts 
 this relates to the ias1 restatement for the change in accounting policy in the current year arising from the adoption of ias 19 revised for details see note 26  
 operating profit before amortisation of intangible assets exceptional items and pension administration costs
all on continuing operations note 
year ended  
31 march  
2014 
 
£m 
year ended 
31 march 
2013
restated
£m 
lossprofit for the year 
 
67 12 
    
exchange differences on translating foreign operations 
 
71 27 
actuarial lossprofit 25 22 135
deferred tax on actuarial loss 
 
01 36 
deferred tax through other comprehensive income 
 
04 – 
exceptional deferred tax through other comprehensive income 
 
15 – 
effect of reduction in uk corporation tax rate on deferred tax 
 
02 02
other comprehensive expense for the year 
 
113 74
total comprehensive expense for the year 
 
180 62
consolidated income statement
for the year ended 31 march 2014
strategic report 
governance
financial statements
company information
73
scapa group plc 
annual report and accounts 2014 consolidated balance sheet 
as at 31 march 2014 
74 
scapa group plc   
annual report and accounts 2014 
the notes on pages 77 to 117 form part of these accounts these accounts were approved by the directors on 28 may 2014 
 
 
h r chae 
group chief executive  
 
p edwards 
group finance director registered in england no 826179 
 
 note 
31 march  
2014 
  
£m 
31 march 
2013 
restated

£m 
31 march 
2012 
restated

£m 
assets     
noncurrent assets     
goodwill 13 241 264 251 
intangible assets 14 34 53 66 
property plant and equipment 15 357 384 404 
deferred tax asset 9 80 244 265 
other receivables 18 – 03 196 
  712 948 1182 
current assets     
assets classified as held for sale 16 – 284 06 
inventory 17 241 236 208 
trade and other receivables 18 423 405 369 
current tax asset  03 – 01 
cash and cash equivalents 19 136 126 169 
  803 1051 753 
liabilities    
current liabilities    
financial liabilities    
− borrowings and other financial liabilities 21 01 03 04
− derivative financial instruments 22 01 03 – 
trade and other payables 20 431 413 340
deferred consideration 12 – 46 63
liabilities directly associated with assets classified as held for sale 16 – 257 – 
current tax liabilities  17 09 13
provisions 24 14 06 20
  464 737 440
net current assets  339 314 313 
noncurrent liabilities     
financial liabilities     
− borrowings and other financial liabilities 21 81 101 95
trade and other payables 20 02 03 07
deferred consideration  – – 29
deferred tax liabilities 9 51 52 48
noncurrent tax liabilities  19 15 15
retirement benefit obligations 25 400 412 315
provisions 24 21 23 269
  574 606 778
net assets  477 656 717 
shareholders’ equity     
ordinary shares 27 73 73 73 
share premium  02 02 02 
retained earnings  270 378 466 
translation reserve  132 203 176 
total shareholders’ equity  477 656 717 
consolidated balance sheet
as at 31 march 2014
 
74
scapa group plc  
annual report and accounts 2014 consolidated statement of changes in equity 
for the year ended 31 march 2014 
75 
scapa group plc 
annual report and accounts 2014 
 
 
share
capital 
£m 
share 
premium 
 
£m 
translation 
reserves 
  
£m  
retained
earnings 
restated

 
£m 
total 
equity 
restated

 
£m 
balance at 31 march 2012 as previously reported 73 02 176 410 661 
prior year adjustment note 26 – – – 56 56 
balance at 31 march 2012 restated

 73 02 176 466 717 
      
employee share option scheme – value of employee services – – – 01 01 
      
currency translation differences  – – 27 – 27 
actuarial loss on pension schemes  – – – 135 135
deferred tax on actuarial loss – – – 36 36 
effect of reduction in uk corporation rate on deferred tax – – – 02 02
net incomeexpense recognised directly in equity  – – 27 101 74
profit for the period  – – – 12 12 
total comprehensive incomeexpense – – 27 89 62
balance at 31 march 2013 restated

 73 02 203 378 656 
      
employee share option scheme – value of employee services – – – 08 08 
dividends to shareholders – – – 07 07
      
currency translation differences  – – 71 – 71
actuarial loss on pension schemes  – – – 22 22
deferred tax on actuarial loss – – – 01 01 
deferred tax through other comprehensive income – – – 04 04
exceptional deferred tax through other comprehensive income – – – 15 15
effect of reduction in uk corporation rate on deferred tax – – – 02 02
net expense recognised directly in equity  – – 71 42 113
loss for the period  – – – 67 67
total comprehensive expense – – 71 109 180
      
balance at 31 march 2014 73 02 132 270 477 
consolidated statement of changes in equity
for the year ended 31 march 2014
strategic report 
governance
financial statements
company information
75
scapa group plc 
annual report and accounts 2014 consolidated cash flow statement 
for the year ended 31 march 2014 
 
76 
scapa group plc   
annual report and accounts 2014 
 
all on continuing operations note 
year ended  
31 march  
2014 
£m 
year ended 
31 march 
2013 
£m 
 
 
cash flows from operating activities    
 
 
net cash flow from operations 29 103 122 
 
 
cash generated from operations before exceptional items 29 101 130 
 
 
cash outflows from exceptional items 29 02 08
 
 
net cash flow from operations  103 122 
 
 
net interest paid  05 04
 
 
income tax paid  27 26
 
 
net cash generated from operating activities  71 92 
 
 
cash flows used in investing activities    
 
 
acquisition of subsidiary 12 22 51
 
 
purchase of property plant and equipment  49 42
 
 
proceeds from sale of property plant and equipment  43 07 
 
 
net cash used in investing activities  28 86
 
 
cash flows used ingenerated from financing activities    
 
 
dividends  07 – 
 
 
increase in borrowings  98 33 
 
 
repayment of borrowings  115 31
 
 
net cash used ingenerated from financing activities  24 02 
 
 
net increase in cash and cash equivalents  19 08 
 
 
cash and cash equivalents at beginning of the year 19 126 167 
 
 
exchange lossesgains on cash and cash equivalents  09 05 
 
 
total cash and cash equivalents at end of the year  136 180 
 
 
cash transferred to assets and disposal group held for sale 16 – 54
 
 
cash and cash equivalents at end of the year less amounts held for sale 19 136 126 
 
 
consolidated cash flow statement
for the year ended 31 march 2014
76
scapa group plc  
annual report and accounts 2014 group accounting policies 
77 
scapa group plc 
annual report and accounts 2014 
scapa group plc ‘the company’ and its subsidiaries together ‘the group’ manufacture and sell technical adhesive tapes the group has 
manufacturing plants around the world and sells mainly in countries within europe north america and asia  
the company is a limited liability company incorporated and domiciled in the uk the address of its registered office is 997 manchester road  
ashtonunderlyne manchester ol7 0ed the company has its listing on the alternative investment market  
these consolidated financial statements have been approved for issue by the board of directors on 28 may 2014  
a summary of the more important group accounting policies applied in the preparation of these consolidated financial statements is set out below  
basis of preparation  
the consolidated financial statements of scapa group plc have been prepared in accordance with international financial reporting standards as 
adopted by the european union ifrss as adopted by the eu ifric interpretations and the companies act 2006 applicable to companies reporting 
under ifrss the consolidated financial statements have been prepared under the historical cost convention as modified by the revaluation of financial 
assets and financial liabilities including derivative instruments at fair value through the income statement  
going concern  
the directors have at the time of approving the financial statements a reasonable expectation that the company and the group have adequate 
resources to continue in operational existence for the foreseeable future thus they continue to adopt a going concern basis of accounting in preparing 
the financial statements further detail is contained in the business review  
early adoption of standards  
the group has not early adopted any standards  
adoption of new and revised standards  
standards affecting the reported results 
ias 19 revised has been adopted by the group from 1 april 2013 the related amendments have impacted the accounting for the group’s defined 
benefit scheme by reclassifying pension scheme administration costs to operating costs in the income statement where previously they have been 
charged to the administration expense reserve held on the balance sheet and replacing the interest costs and expected return on assets with an 
interest charge on the net defined benefit liability 
as a result of the adoption of ias 19 revised and in line with amendments to ias 1 presentation of financial statements the group has presented  
a restated balance sheet for each of the years ended 31 march 2013 and 31 march 2012 together with notes for the relevant restated comparatives 
standards not affecting the reported results nor the financial position 
the group has considered ifrs 13 fair value measurement and the amendments to ifrs 7 disclosures neither of these has any significant effect 
on the financial statements of the group  
at the date of these financial statements the following standards and interpretations which have not been applied in these financial statements were  
in issue but not yet effective and in some cases had not yet been adopted by the eu the directors do not expect that the adoption of the standards 
and interpretations listed below will have a material impact on the group in future periods 
ifrs 9 financial instruments 
ifrs 10 and 12 and ias 27 amendments investment entities 
ias 32 amendments offsetting financial assets and financial liabilities 
ias 36 amendments recoverable amount disclosures for nonfinancial assets 
ias 39 amendments novation of derivatives and continuation of hedge accounting 
ifric interpretation 21 levies 
consolidation  
the consolidated financial statements incorporate the financial statements of the company and entities controlled by the company its subsidiaries 
made up to 31 march each year control is achieved when the company has power over the investee is exposed or has rights to variable returns 
from its involvement with the investee and has the ability to use its power to affect its returns 
the company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the 
elements listed above 
consolidation of a subsidiary begins when the company obtains control over the subsidiary and ceases when the company loses control of the 
subsidiary specifically the results of subsidiaries acquired or disposed of during the year are included in the consolidated income statement from 
the date the company gains control of the subsidiary or until the date when the company ceases to control the subsidiary 
where necessary adjustments are made to the financial statements of subsidiaries to bring accounting policies used into line with the group’s 
accounting policies all intragroup assets and liabilities equity income expenses and cash flows relating to transactions between group companies 
are eliminated on consolidation 
 
group accounting policies
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financial statements
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consolidation continued 
the group has an interest in scapa scottish limited partnership whose head office is located at 13 queens road aberdeen the financial statements 
of the group include the results and financial position of the group’s interest in scapa scottish limited partnership accordingly advantage has been 
taken of the exemptions provided by regulation 7 of the partnership accounts regulations 2008 from the requirements for the preparation delivery 
and publication of the partnership’s accounts 
segmental reporting  
ifrs 8 operating segments requires that the segments should be reported on the same basis as the internal reporting information that is provided to 
the chief operating decision maker the group adopts this policy and the chief operating decision maker has been identified as the board of directors 
the directors consider there to be three reportable segments being the main customer groups which the group serves in industrial healthcare and 
electronics business units  
internal reports reviewed regularly by the board provide information to allow the chief operating decision maker to allocate resources and make 
decisions about the operations the internal reporting focuses on these business units the chief operating decision maker relies primarily on turnover 
and trading profit to assess the performance of the group and make decisions about resources to be allocated to the segment trading profit is 
reconciled to operating profit on the face of the income statement 
revenue recognition  
revenue comprises the fair value for the sale of goods net of valueadded tax rebates and discounts and after eliminating sales within the group 
revenue is recognised as follows  
a sales of goods  
sales of goods are recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer and when  
the group entity has no continuing managerial involvement nor effective control over the goods  
where items are sold with a right of return accumulated experience is used to estimate and provide for such returns at the time of sale  
b interest income  
interest income is recognised when it is probable that the economic benefits will flow to the group and the amount of revenue can be measured 
reliably interest income is accrued on a time basis by reference to the principal outstanding and at the effective interest rate applicable which is 
the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount  
on initial recognition  
operating profit  
operating profit is defined as trading profit after exceptional items pension administration costs and amortisation of intangible assets  
leases  
leases in which a significant portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases payments 
made under operating leases net of any incentives received from the lessor are charged to the income statement on a straightline basis over the 
period of the lease  
leases in which substantially all of the risks and rewards of ownership are transferred to the group are classified as finance leases finance leases are 
recognised as assets and liabilities in the balance sheet at the present value of the minimum lease payments the interest rate implicit in the lease is 
used as the discount rate in calculating the present value of the cash outflows where the group does not obtain ownership of the asset at the end  
of the lease period the asset is depreciated over the shorter of its useful life and the lease term where ownership does pass to the group at the end  
of the lease period the policy for depreciating the asset is consistent with that for depreciable assets that are owned  
minimum lease payments are apportioned between the finance charge and the reduction of the outstanding liability the finance charge is calculated 
based on the amount of borrowing outstanding and is charged against profits over the primary lease period  
government grants  
grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received and the group  
will comply with all attached conditions  
government grants relate to tangible fixed assets and are treated as deferred income and are credited to the income statement over the expected 
useful lives of the assets concerned 
group accounting policies continued
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research and development expenditure 
research expenditure is expensed as incurred costs associated with developing or enhancing existing product lines are recognised as an expense  
as incurred  
development costs are assessed as to whether they meet the ias 38 criteria for capitalisation an internally generated intangible asset is recognised 
only if all of the following conditions are met 
• 
technical feasibility and intention to complete the intangible asset so that it is available for use 
• 
an asset has been created that can be identified 
• 
ability to use or sell the asset 
• 
it is probable that the asset created will generate future economic benefits 
• 
the development cost of the asset can be measured reliably 
no costs have been incurred by the group which meet those criteria 
exceptional items  
items which are both material either qualitatively or quantitatively and nonrecurring in nature are presented as exceptional items so as to provide  
a better indication of the group’s underlying business performance and are shown separately on the face of the income statement items classed  
as exceptional in the income statement are treated as exceptional in the cash flow until the items are fully unwound 
foreign currency translation  
a functional and presentation currency  
items included in the financial statements of each of the group’s entities are measured using the currency of the primary economic environment  
in which the entity operates ‘the functional currency’ the consolidated financial statements are presented in sterling  
b transactions and balances  
foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions 
foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of 
monetary assets and liabilities denominated in foreign currencies are recognised in the income statement except when deferred in equity as 
qualifying net investment hedges  
c group companies  
the results and financial position of all the group entities none of which has the currency of a hyperinflationary economy that have a functional 
currency different from the presentation currency are translated into the presentation currency as follows  
i assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet  
ii income and expenses for each income statement are translated at average exchange rates unless this average is not a reasonable 
approximation of the cumulative effect of the rates prevailing on the transaction dates in which case income and expenses are translated  
at the dates of the transactions  
on consolidation exchange differences arising from the translation of the net investment in foreign entities and of longterm borrowings that are 
considered to form part of that net investment are taken to the translation reserve within shareholders’ equity when a foreign operation is sold  
such exchange differences are recognised in the income statement as part of the gain or loss on sale  
goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated  
at the closing rate  
business combinations and goodwill  
acquisitions of subsidiaries and businesses are accounted for using the acquisition method the consideration for each acquisition is measured at  
the aggregate of the fair values at the date of exchange of assets given liabilities incurred or assumed and equity instruments issued by the group  
in exchange for control of the acquiree acquisitionrelated costs are recognised in profit or loss as incurred and are normally treated as exceptional 
goodwill is measured as the excess of the sum of the consideration transferred the amount of any noncontrolling interests in the acquiree and the fair 
value of the acquirer’s previously held equity interests in the acquiree if any over the net of the acquisitiondate amounts of the identifiable assets 
acquired and liabilities assumed 
where applicable the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement  
measured at its acquisitiondate fair value subsequent changes in such fair values are adjusted against the cost of acquisition where they qualify  
as measurement period adjustments see below all other subsequent changes in the fair value of contingent consideration classified as an asset  
or liability are accounted for in accordance with relevant ifrss changes in the fair value of contingent consideration classified as equity are  
not recognised 
if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs the group reports 
provisional amounts for the items for which the accounting is incomplete those provisional amounts are adjusted during the measurement period  
see below or additional assets or liabilities are recognised to reflect new information obtained about facts and circumstances that existed as of the 
acquisition date that if known would have affected the amounts recognised as of that date 
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business combinations and goodwill continued 
the measurement period is the period from the date of acquisition to the date the group obtains complete information about facts and circumstances 
that existed as of the acquisition date and is subject to a maximum of one year 
goodwill is tested annually for impairment or when an indication of impairment is identified and carried at cost less accumulated impairment losses 
gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold  
goodwill is allocated to cashgenerating units for the purpose of impairment testing each of those cashgenerating units represents the group’s 
investment in each site 
property plant and equipment including land and buildings  
land and buildings comprise mainly factories and offices all property plant and equipment is stated at historical cost less accumulated depreciation 
and impairment historical cost includes expenditure directly attributable to the acquisition of the items  
subsequent costs are included in the asset’s carrying amount or recognised as a separate asset as appropriate only when it is probable that future 
economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably all other repairs and maintenance 
are charged to the income statement when incurred 
land is not depreciated depreciation on other assets is calculated using the straightline method to reduce their cost to their residual values over their 
estimated useful lives as follows  
• 
freehold buildings 40 years  
• 
leasehold buildings life of the lease  
• 
plant and machinery 5–20 years  
• 
furniture fittings and equipment 5–20 years  
• 
it systems 3–8 years  
assets held in the course of construction are not depreciated until they are brought into use 
the assets’ residual values and useful lives are reviewed and adjusted if appropriate at each balance sheet date an asset’s carrying amount is written 
down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount  
gains and losses on disposals are determined by comparing proceeds with carrying amount these are included in the income statement within 
operating profit  
assets held for sale  
assets and disposal groups classified as held for sale are measured at the lower of carrying amount and fair value less costs to sell 
assets and disposal groups are classified as held for sale if their carrying amount will be recovered through a sale or transaction rather than through 
continuing use this condition is regarded as met only when the sale is highly probable and the asset or disposal group is available for immediate sale 
in its present condition management must be committed to the sale which should be expected to qualify for recognition as a completed sale within 
one year from the date of classification 
when the group is committed to a sale plan involving loss of a subsidiary all of the assets and liabilities of that subsidiary are classified as held for sale 
when the criteria described above are met regardless of whether the group will retain interest in its former subsidiary after the sale 
intangible assets  
the group’s intangible assets have all been acquired and there are no internally generated intangibles  
all acquired intangible assets are measured at cost and are amortised on a straightline basis over their estimated useful lives all of the group’s 
intangible assets have finite lives the lengths of which are disclosed separately under the notes in the accounts 
impairment of assets  
assets such as goodwill that have an indefinite useful life are not subject to amortisation and instead are tested annually for impairment assets that 
are subject to amortisation or depreciation are reviewed for impairment whenever events or changes in circumstances indicate that the carrying 
amount may not be recoverable an impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable 
amount the recoverable amount is the higher of an asset’s sale value less costs to sell and value in use for the purposes of assessing impairment 
assets are grouped at the lowest levels for which there are separately identifiable cash flows cashgenerating units  
value in use is determined based on the estimated future cash inflows and outflows derived from the continued use of the asset and from its ultimate 
disposal these forecasts form the basis of the group’s annual budget have been signed off by the board and are the best estimates available to 
management in assessing future profitability these cash flows are discounted using the group’s pretax weighted average cost of capital of 97 
2013 95 adjusted to reflect any risks specific to the asset for which the estimated future cash flows have not already been adjusted see note 13 
where the recoverable amount of assets other than goodwill subsequently materially increases impairment losses recognised in previous periods  
will be reversed 
group accounting policies continued
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financial instruments  
the group classifies its financial instruments in the following categories financial assets and liabilities at fair value through profit or loss and loans 
receivables and payables the classification depends on the purpose for which the instruments were acquired management determines the 
classification of its instruments at initial recognition and reevaluates this at every reporting date  
a financial assets and liabilities measured at fair value through profit and loss  
financial assets and liabilities are measured at fair value instruments in this category are classified as current if they are either held for trading  
or are expected to be realised within 12 months of the balance sheet date hedge accounting is only applied for net investment hedges with 
changes in fair value being taken directly to the translation reserve where hedge accounting is achieved 
b loans receivables and payables  
loans receivables and payables are nonderivative financial assets and liabilities with fixed or determinable payments that are not quoted in  
an active market they arise when the group provides money goods or services directly to a debtor or creditor with no intention of trading the 
receivable or payable they are included in current assets or liabilities except for maturities greater than 12 months after the balance sheet date 
these are classified as noncurrent assets or liabilities loans and receivables are included in trade and other receivables or trade and other 
payables in the balance sheet loans receivables and payables are measured at invoice or historic cost less any impairment  
inventories  
inventories are stated at the lower of cost and net realisable value cost is determined using the firstin firstout fifo method the cost of finished 
goods and work in progress comprises raw materials direct labour other direct costs and related production overheads allocated on a systematic 
basis based on normal operating capacity it excludes borrowing costs net realisable value is the estimated selling price in the ordinary course of 
business less applicable variable selling expenses provision is made for obsolete slow moving and defective inventory on a line by line basis or by 
grouping similar or related items by reference to accumulated experience  
trade receivables  
trade receivables are recognised initially at invoice value less provision for impairment a provision for impairment of trade receivables is established 
when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of receivables the provision 
is recognised in the income statement as an operating charge  
insurance receivables 
where some or all of the cost of a provision is reimbursed by another party the group recognises that reimbursement when it is virtually certain it will 
be received 
cash and cash equivalents  
cash and cash equivalents include cash in hand deposits held at call with banks other shortterm highly liquid investments with original maturities  
of three months or less and bank overdrafts bank overdrafts are shown within borrowings in current liabilities on the balance sheet  
share capital  
ordinary shares are classified as equity  
dividend distribution to the company’s shareholders is recognised as a liability in the group’s financial statements in the period in which the dividends 
are approved by the company’s shareholders or in respect of interim dividends when approved by directors  
trade payables  
trade payables are recognised at the invoice amount which is equal to their fair value  
borrowings  
borrowings are recognised initially at fair value net of transaction costs incurred and subsequently stated at amortised cost interest charges are 
recognised in the income statement over the period of the borrowings using the effective interest method  
borrowings are classified as current liabilities unless the group has a right to defer settlement of the liability for at least 12 months after the balance 
sheet date  
taxation 
taxation expense comprising both uk and nonuk taxation represents the sum of the current tax payable and deferred tax 
current tax is the tax expected to be payable on taxable profit for the period using tax rates that have been enacted or substantively enacted by the 
balance sheet date together with any adjustments in respect of previous years taxable profit differs from profit as reported in the income statement 
because it excludes items of income or expense that are not taxable or deductible or are taxable or deductible in other years 
deferred tax is recognised using the liability method for temporary differences between the carrying amounts of assets and liabilities in the financial 
statements and the corresponding tax bases used in the computation of taxable profit unless specifically exempt deferred tax assets are recognised 
only to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised deferred tax  
is calculated using tax rates that are expected to apply in the period when the liability is settled or the asset realised the resulting charge or credit is 
recognised in the income statement except when it relates to items recognised directly in equity in which case the charge or credit is also recognised 
directly in equity 
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dividends 
dividends proposed by the board are recognised in the financial statements when they have been approved by shareholders at the agm interim 
dividends are recognised when they are paid 
employee benefits  
a pension obligations  
group companies operate various pension schemes the schemes are funded through payments to trusteeadministered funds determined by 
periodic actuarial calculations the group has both defined benefit and defined contribution plans a defined benefit plan is a pension plan that 
defines an amount of pension benefit that an employee will receive on retirement usually dependent on one or more factors such as age years  
of service and compensation  
the liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the 
balance sheet date less the fair value of plan assets together with adjustments for unrecognised actuarial gains or losses and past service costs 
the defined benefit obligation is calculated by independent actuaries using the projected unit credit method the present value of the defined 
benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high quality corporate bonds that  
are denominated in the currency in which the benefits will be paid and that have terms to maturity approximating to the terms of the related 
pension liability  
actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to shareholders’ 
equity  
pastservice costs are recognised immediately in the income statement unless the changes to the pension plan are conditional on the employees 
remaining in service for a specified period of time the vesting period in this case the pastservice costs are amortised on a straightline basis 
over the vesting period  
a defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity the group has no legal  
or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to 
employee service in the current and prior periods  
for defined contribution plans the group pays contributions to publicly or privately administered pension insurance plans on a mandatory 
contractual or voluntary basis the contributions are recognised as employee benefit expense when they are due prepaid contributions are 
recognised as an asset to the extent that a cash refund or a reduction in the future payments is available  
b sharebased compensation  
the group operates an equitysettled sharebased compensation plan the fair value of the employee services received in exchange for the grant 
of the options is calculated using appropriate valuation models and is recognised as an expense over the vesting period  
the total amount to be expensed over the vesting period is determined by reference to the fair value of the options granted at each balance sheet 
date the entity revises its estimates of the number of options that are expected to become exercisable  
it recognises the impact of the revision of original estimates if any in the income statement and a corresponding adjustment to equity over  
the remaining vesting period  
the proceeds received net of any directly attributable transaction costs are credited to share capital nominal value and share premium when  
the options are exercised  
c holiday pay  
the group recognises an asset or liability relating to holiday pay obligations at the balance sheet date movements in the period are taken  
to the income statement  
d bonus plans  
the group recognises a liability and an expense for bonuses based on a predetermined formula for key performance indicators the group 
recognises a provision where contractually obliged or where past practice has created a constructive obligation  
e share price incentive plan  
the group accounts for the share price incentive plan in line with ias 19 as the basis of compensation is not an award of shares and therefore 
does not fall under the remit of ifrs 2 
provisions 
provisions for environmental restoration restructuring costs and legal claims are recognised when the group has a present legal or constructive 
obligation as a result of past events it is more likely than not that an outflow of resources will be required to settle the obligation and the amount has 
been reliably estimated  
where the effect is material provisions are discounted in line with ias 37 using a pretax nominal discount rate the discount rate does not reflect risks 
for which the estimated future outflows have already been adjusted 
 
group accounting policies continued
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critical accounting estimates and judgements 
the group’s accounting policies have been set by management and approved by the audit and risk committee the application of these accounting 
policies to specific scenarios requires reasonable estimates and assumptions to be made concerning the future these are continually evaluated  
based on historical experience and expectations of future events the resulting accounting estimates will by definition seldom equal the related  
actual results  
under ifrss estimates or judgements are considered critical where they involve a significant risk of causing a material adjustment to the carrying 
amounts of assets and liabilities from period to period this may be because the estimate or judgement involves matters which are highly uncertain  
or because different estimation methods or assumptions could reasonably have been used 
critical judgements and estimates have been made in the following areas when preparing the group’s accounts  
1 impairment of goodwill intangible assets and property plant and equipment see notes 13 and 15 the group tests annually whether goodwill has 
suffered any impairment and tests tangible assets where indication of impairment exists for goodwill the recoverable amounts of cashgenerating 
units are determined on a valueinuse basis determining this value requires the use of estimates the main estimates are around the forecast 
cash flows which are based on approved budgets and growth rates of 3–15 per annum in years 1–5 and no growth thereafter the 3 
growth rate is used for the majority of cash flows and the higher rate of 15 is used for a specific cashgenerating unit the assumptions used  
are considered the best available and reasonable any reasonable change in the assumptions would not result in any impairment  
2 retirement benefit liabilities – the key assumptions used to calculate the pensions deficit and the sensitivity of those assumptions to change  
is contained within note 25 the assumptions used are considered the best available and reasonable  
3 taxation see note 9 the group is subject to income taxes in numerous jurisdictions significant judgement is required in determining the 
worldwide provisions for income taxes and the recognition of deferred tax assets the recognition of deferred tax is based on the availability of 
suitable future taxable profits of a specific business unit in a specific tax jurisdiction and satisfies the relevant recognition criteria the assumptions 
used are considered the best available and reasonable a significant deterioration in results would need to occur in order to result in an impairment 
of the deferred tax recognised 
 
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company information
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1 segmental reporting 
business unit segments 
the group trades across three business units healthcare industrial and electronics and in three main geographical areas europe north america 
and asia all intersegment transactions are made on an arm’slength basis the group has continued to focus more on business units than 
geographical areas for strategic planning of the group geographical information is presented to provide supplementary information about the areas  
in which the group operates for the benefit of investors 
the chief operating decision maker relies primarily on turnover and trading profit to assess the performance of the group and make decisions about 
resources to be allocated to the segment assets and liabilities are looked at geographically trading profit is reconciled to operating profit on the face 
of the income statement 
the board reviews the performance of the business using information presented at consistent exchange rates the prior year results have been 
restated as shown on the following page 
segment results 
the segment results for the year ended 31 march 2014 are as follows  
 
revenue is allocated based on the country in which the order is received all revenue relates to the sale of goods the revenue analysis based on the 
location of the customer is as follows 
there are no single customers with greater than 10 share of the total external revenue of the group 
 
healthcare
£m 
industrial
£m 
electronics 
£m 
head office 
£m 
group
£m 
external revenue 692 1457 112 – 2261 
trading profitloss 102 79 02 24 155 
amortisation of intangible assets 15 – – – 15
exceptional items 12 07 – 03 02 
pension administration costs – 03 – 05 08
operating profitloss 99 69 02 32 134 
net finance costs     22
profit on ordinary activities before tax     112 
tax charge     179
loss for the year     67
 
europe
£m 
n america
£m 
asia 
£m 
head office 
£m 
group
£m 
external revenue 1031 1105 125 – 2261 
trading profitloss 67 118 06 24 155 
amortisation of intangible assets – 15 – – 15
exceptional items 05 10 – 03 02 
pension administration costs 03 – – 05 08
operating profitloss 59 113 06 32 134 
net finance costs     22
profit on ordinary activities before tax    112 
tax charge     179
loss for the year     67
 
europe
£m 
n america
£m 
asia 
£m 
other 
£m 
group
£m 
external revenue 945 1051 121 144 2261 
notes on the accounts
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annual report and accounts 2014 
1 segmental reporting continued 
the segment results for the year ended 31 march 2013 are as follows  
 
revenue is allocated based on the country in which the order is received all revenue relates to the sale of goods the revenue analysis based on the 
location of the customer is as follows 
 
 
 
 
healthcare
 
£m 
industrial
restated 
£m 
electronics 
 
£m 
head office 
restated 
£m 
group
restated
£m 
external revenue 574 1407 107 – 2088 
trading profitloss 84 72 03 16 137 
amortisation of intangible assets 15 – – – 15
exceptional items – 06 04 09 11 
pension administration costs – 05 – 11 16
operating profitloss 69 73 07 18 117 
net finance costs     21
profit on ordinary activities before tax     96 
tax charge     84
profit for the year     12 
 
europe
restated
£m 
n america
£m 
asia 
 
£m 
head office
restated
£m 
group
restated
£m 
external revenue 999 971 118 – 2088 
trading profitloss 47 110 04 16 137 
amortisation of intangible assets – 15 – – 15
exceptional items 06 – 04 09 11 
pension administration costs 05 – – 11 16
operating profitloss 48 95 08 18 117 
net finance costs     21
profit on ordinary activities before tax    96 
tax charge     84
profit for the year     12 
 
europe
£m 
n america
£m 
asia 
£m 
other 
£m 
group
£m 
external revenue 904 908 116 160 2088 
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company information
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annual report and accounts 2014 notes on the accounts continued 
 
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1 segmental reporting continued 
the board reviews the performance of the business using information presented at consistent exchange rates the prior year results have been 
restated using this year’s exchange rates as follows 
 
geographical information 
the group’s revenue from external customers based upon the location where the sale occurred and information about its segment assets  
noncurrent assets excluding financial instruments deferred tax assets and other financial assets are detailed below 
noncurrent assets exclude those relating to noncurrent assets held for resale 
2 segment assets and liabilities 
the chief operating decision maker does not review assets and liabilities by business unit but by geographical area the assets and liabilities at  
31 march 2014 and capital expenditure for the year then ended can be analysed into geographical segments as follows  
 
 
healthcare 
£m 
industrial
£m 
electronics 
£m 
head office  
£m 
group
£m 
external revenue 574 1407 107 – 2088 
foreign exchange 04 09 01 – 04 
underlying external revenue 570 1416 106 – 2092 
trading profitloss 84 72 03 16 137 
foreign exchange 01 – – – 01
underlying trading profitloss 83 72 03 16 136 
 
europe
£m 
n america 
£m 
asia 
£m 
head office  
£m 
group
£m 
external revenue 999 971 118 – 2088 
foreign exchange 20 15 01 – 04 
underlying external revenue 1019 956 117 – 2092 
trading profitloss 47 110 04 16 137 
foreign exchange 01 02 – – 01
underlying trading profitloss 48 108 04 16 136 
 
revenue from 
external customers 
2014
£m 
revenue from 
external customers 
2013
£m 
noncurrent  
assets  
2014 
£m 
noncurrent
assets 
2013
£m 
usa 892 767 378 423 
france 408 373 33 37 
uk 302 303 50 51 
canada 213 205 64 85 
other countries 446 440 107 105 
 2261 2088 632 701 
 
europe
£m 
n america
£m 
asia 
£m 
head office 
£m 
group
£m 
inventory 111 112 18 – 241 
trade receivables net 214 156 24 – 394 
trade payables 198 93 06 09 306
cash  67 45 18 06 136 
additions of property plant and equipment 22 25 03 02 52 
notes on the accounts continued
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scapa group plc 
annual report and accounts 2014 
2 segment assets and liabilities continued 
the assets and liabilities at 31 march 2013 and capital expenditure for the year then ended were as follows  
unallocated head office items relate to assets and liabilities incurred in the normal course of business for the parent company 
3 operating profit 
the operating profit for the year is stated after chargingcrediting  
 
2014
total 
 
£m 
2013
total 
restated

 
£m 
revenue  2261 2088 
materials and overheads  1150 1042
factory costs 167 166
outward freight costs 71 66
directors’ and employees’ costs  573 537
depreciation of tangible fixed assets  
− owned assets  51 51
− leased assets  01 01
operating lease rentals   
− land and buildings  20 19
− plant machinery and other  10 11
repairs and maintenance costs  24 25
research and development costs  25 22
amortisation of government grants received  02 02 
movement in fair value of financial instruments  02 03
foreign exchange lossesgains 02 02 
amortisation of intangible assets 15 15
profit on disposal of property plant and equipment and other assets 13 07 
decreaseincrease in inventory provision 06 06
impairment loss recognised in trade receivables 01 – 
pension administration costs 08 16
 
 
 
europe
£m 
n america
£m 
asia 
£m 
head office
£m 
group
£m 
inventory 105 110 21 – 236 
trade receivables net 204 152 21 – 377 
trade payables 176 92 06 08 282
cash  63 03 19 41 126 
additions of property plant and equipment 18 21 02 04 45 
strategic report 
governance
financial statements
company information
87
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
88 
scapa group plc   
annual report and accounts 2014 
3 operating profit continued 
the analysis of auditor’s remuneration is as follows  
total audit fees were £285000 2013 £294000 total nonaudit fees were £397000 2013 £213000 
4 exceptional items 
during the year the group incurred a number of exceptional gains and costs that are separated for transparency and to provide a better understanding 
of the underlying performance of the group the net result of the gains and costs is an exceptional gain of £02m 2013 £11m  
exceptional operating income 
an exceptional gain of £22m 2013 £nil was released as part of the accounting for the acquisition of webtec the final earn out based on trading  
to december 2013 resulted in a release of contingent consideration and brings the total cost of acquisition to us404m versus total potential of 
us438m  
as previously reported during the year the group disposed of the branly site in valence france and after costs to sell recorded a profit on disposal of 
£10m 2013 £nil the expected profit on disposal was reported in the 2013 year end accounts as £14m and the site included as an asset held for 
resale at the previous year end additional costs associated with the disposal were incurred in the current year reducing the actual profit on disposal  
to £10m against this £10m gain £02m of costs relating to the demolition of vacant buildings at a second french site have been deducted as the 
site based strategy for france is considered one project this second site is now a vacant plot of land which the group is in the process of trying to 
dispose of the land is recorded at its historical cost which is below expected market value this land is not being held as an asset held for resale  
as per ifrs 5 the directors do not have a reasonable expectation that the site will be sold in the near future  
the merger of the uk pension schemes into a single new scheme resulted in a settlement gain of £02m 2013 £11m the group has a policy  
of reporting its settlement gains as exceptional 
 
2014  
total  
£’000 
2013
total 
£’000 
audit fees – parent company 800 750 
audit fees – subsidiary undertakings 2050 2190 
taxation compliance services 580 720 
taxation advisory services 1010 930 
internal audit services – 90 
other assurance services 80 50 
corporate finance services 2260 – 
other nonaudit services 40 340 
 6820 5070 
 
2014  
£m 
2013
£m 
operating income   
building sale and demolition 08 – 
webtec deferred consideration adjustment 22 – 
uk pension settlement gain 02 11 
release of asbestos litigation provision notes 16 24 – 18 
   
operating expenses   
contract startup costs 05 – 
exceptional bonus payments 08 – 
reorganisation costs 14 – 
abortive acquisition costs 03 – 
asbestos litigation asset notes 16 24 – 18
 02 11 
notes on the accounts continued
88
scapa group plc  
annual report and accounts 2014  
 
89 
scapa group plc 
annual report and accounts 2014 
4 exceptional items continued 
exceptional operating costs 
the group incurred exceptional costs of £14m 2013 £nil relating to a groupwide reorganisation no additional costs relating to this are expected  
to be incurred in 201415  
exceptional bonus costs of £08m 2013 £nil were incurred relating to the oneoff share price related incentive that has payout triggers when the 
share price reaches £100 and £150 owing to the rapid increase in share price during the second half of 201314 the additional accrual for this 
payout has been treated as exceptional and separated out from underlying costs 
contract startup costs of £05m 2013 £nil relate to the nonrecurring cost of setting up 247 manufacturing at a key site by adding additional shifts 
the costs of trainers and the direct costs of the shift being trained have been identified and separated out to give a clearer picture of the underlying 
costs of manufacture in addition excess material scrap incurred during training and during the initial operation of the shifts has been accounted for as 
an exceptional cost as the site is now running at 247 and these exceptional costs are not expected to recur the profits and costs related to the site 
will be reported within trading profit in future years 
the group spent £03m 2013 £nil on costs associated with a potential acquisition the purchase was aborted and the costs have been 
separated out 
5 employee benefit expense  
 
2014
£m 
2013
£m 
wages salaries and other benefits  474 449 
social security costs 68 66 
share options granted to directors and employees  08 01 
pension costs – defined contribution plans note 25  18 17 
pension costs – defined benefit plans note 25  05 04 
 573 537 
pension curtailments and service costs note 4  02 11
 571 526 
 
average employee numbers 2014 2013 
europe 620 609 
north america 499 491 
asia 104 109 
 1223 1209 
 
6 key management compensation and directors’ remuneration 
key management is considered by the group to be the leadership team which comprises certain senior employees information about the 
remuneration of individual directors is provided in the audited part of the directors’ remuneration report on pages 60 to 64 
the shortterm employment benefits include wages and salaries bonuses social security contributions and nonmonetary benefits  
 2014 2013
 
executive 
directors 
£m 
non
executive 
directors
£m 
key 
management 
£m 
total 
£m 
executive 
directors
£m 
non
executive 
directors 
£m 
key 
management
£m 
total
£m 
shortterm employment benefits 15 02 15 32 12 02 18 32 
postemployment benefits 01 – 01 02 01 – 01 02 
termination benefits – – 03 03 – – – – 
sharebased payments  
including share incentive plan 12 – 03 15 04 – 02 06 
 28 02 22 52 17 02 21 40 
strategic report 
governance
financial statements
company information
89
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
90 
scapa group plc   
annual report and accounts 2014 
7 related party transactions 
as part of the acquisition of webtec converting llp ‘webtec’ in 2011 the group entered into a deferred payment mechanism to compensate  
the former owners of the business during the year ended 31 march 2014 a final payment was made in settlement of the deferred consideration 
arrangement see note 12 this included us35m paid to a company of which randy holmes director of global development is a part owner 
the group has incurred £02m of property lease costs during the year payable to hpb investments a company owned in part by randy holmes 
the lease which expires in august 2019 has a current annual cost of £02m 
randy holmes is leaving the group on 31 july 2014 
the pension schemes are related parties to the group there were no contributions outstanding at the year end and full details of transactions within 
the pension schemes are detailed in note 25 
8 net finance costs 
9 taxation 
income tax charge 
 
2014 
 
£m 
2013
restated

£m 
current tax   
tax on ordinary activities – current year 40 25
tax on ordinary activities – prior year 03 01 
tax on exceptional items 01 – 
 36 24
deferred tax   
tax on ordinary activities – current year  07 26
tax on ordinary activities – prior year  – 01 
effect of reduction in uk corporation tax rate to 20 2013 23 18 03
tax on exceptional items 05 32
exceptional deferred tax write off 113 – 
 143 60
tax charge for the year  179 84
 
 
2014 
 
£m 
2013
restated

 
£m 
interest payable on bank loans and overdrafts  05 05
other finance charges 01 02
expected return on pension scheme assets less interest on scheme liabilities note 25 16 12
discount on assets note 16 – 06 
discount on provisions notes 16 24 – 08
net finance costs  22 21
notes on the accounts continued
90
scapa group plc  
annual report and accounts 2014  
 
91 
scapa group plc 
annual report and accounts 2014 
9 taxation continued 
the actual tax on the group’s profit before tax differs from the theoretical amount using the uk corporation tax rate as follows  
tax on exceptional items and pension administration costs 
 
 
 
2014
£m  
2013
restated

 £m 
profit on ordinary activities before tax  112 96 
theoretical tax charge at 23 2013 24 26 23
effect of reduction in uk corporation tax rate to 20 2013 23 18 03
deferred tax not recognised in the year and write off of previously recognised deferred tax 117 15
income not taxable and other deductions  03 02 
items not deductible for tax purposes and other taxable items  08 32
effect of overseas tax rates being higher than uk tax rate  16 15
adjustments in respect of prior years  03 02 
actual tax charge for the year 179 84
2014 
profitloss  
before tax 
£m 
tax 
£m 
profitloss 
after tax 
£m 
building sale and demolition 08 02 06 
webtec deferred consideration adjustment 22 08 14 
uk pension settlement gain 02 – 02 
contract startup costs 05 02 03
exceptional bonus payments 08 – 08
reorganisation costs 14 02 12
abortive acquisition costs 03 – 03
exceptional items  02 06 04
pension administration costs 08 02 06
exceptional items including pension administration costs 06 04 10
 
2013 
profitloss  
before tax 
£m 
tax 
£m 
profitloss 
after tax 
£m 
uk pension settlement gain 11 – 11 
release of asbestos litigation provision 18 – 18 
asbestos litigation asset 18 – 18
exceptional deferred tax write off – 14 14
asset held for resale – 22 22
exceptional items 11 36 25
pension administration costs 16 04 12
exceptional items including pension administration costs 05 32 37
strategic report 
governance
financial statements
company information
91
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
92 
scapa group plc   
annual report and accounts 2014 
9 taxation continued 
deferred income tax 
during the current year the basis of recognising the deferred tax asset in the uk was reviewed due to the changes in the structure of intercompany 
loans and the group’s focus to diversify its markets it was deemed appropriate to write down the carrying value of the uk deferred tax asset to 
£15m this resulted in a charge to the income statement in the year of £105m in line with ias 12 the group believes it probable that sufficient 
taxable profits will be available against which the revised uk deferred tax asset can be utilised 
for the purposes of consistency the deferred tax recognition criteria throughout the group has also been reviewed this has resulted in an additional 
deferred tax write off of £08m bringing the total of deferred tax written off to £113m 
the deferred tax balances included in these accounts are attributable to the following 
retirement benefit liabilities include £15m 2013 £91m relating to uk pension schemes and the assetbacked arrangement entered into in  
march 2013 note 25 the reduction is attributable to the change in basis of recognition of deferred tax assets during the year 
as required by ias 12 deferred tax assets and liabilities may only be offset where they arise in the same jurisdictions and are therefore presented  
on the balance sheet as follows  
tax losses amounting to £153m 2013 £19m have not been recognised due to the uncertainty over the utilisation of the underlying tax losses  
in each jurisdiction 
deferred tax is only recognised in respect of entities that made a trading profit in the current and preceding year  
 
2014 
 
£m 
2013
restated

£m 
deferred tax assets    
− losses 44 83 
− accelerated tax depreciation  – 05 
− provisions and other shortterm timing differences  26 40 
− tax effect of intangibles  – 05 
− retirement benefit liabilities  29 100 
 99 233 
deferred tax liabilities   
− accelerated tax depreciation 28 – 
− other shortterm timing differences 03 04
− tax effect of intangibles 02 – 
− provision for potential tax liability 37 37
 70 41
 
2014 
 
£m  
2013
restated

 
£m 
deferred tax assets as above 99 233 
− other timing differences on assets moved to liabilities – 01
− accelerated tax depreciation liabilitiesassets in different countries 19 12 
deferred tax asset on the balance sheet 80 244 
deferred tax liabilities as above  70 41
− other timing differences on liabilities moved to assets – 01 
− accelerated tax depreciation liabilities in different countries  19 12
deferred tax liability on the balance sheet  51 52
notes on the accounts continued
92
scapa group plc  
annual report and accounts 2014  
 
93 
scapa group plc 
annual report and accounts 2014 
9 taxation continued 
 
in his budget statements on 21 march 2012 and 20 march 2013 the uk chancellor of the exchequer announced reductions in the rate of corporation 
tax to 23 from 1 april 2013 21 from 1 april 2014 and 20 from 1 april 2015 
as at 31 march 2014 the reduction in the rate of corporation tax to 20 had been substantively enacted deferred tax balances have therefore been 
revalued to the lower rate of 20 in these accounts 
10 lossearnings per share 
basic  
basic lossearnings per share is calculated by dividing the lossprofit attributable to equity holders of the company by the weighted average number 
of ordinary shares in issue during the year 
diluted  
diluted lossearnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all 
potentially dilutive ordinary shares 151411376 2013 153411847 diluted lossearnings per share has been calculated including share options  
in existence at 31 march 2014 
underlying  
underlying earnings per share is calculated by dividing the trading profit less cash interest less tax on operating activities by the weighted average 
number of ordinary shares in issue during the year 
movement in deferred tax  
2014
£m  
2013
restated

£m 
beginning of the year 192 217 
income statement charge 125 57
effect of reduction in uk corporation tax rate to 20 2013 23 18 03
exchange differences on translating foreign operations – 01 
deferred tax on actuarial loss 01 36 
deferred tax through other comprehensive income 04 – 
exceptional deferred tax through other comprehensive income 15 – 
other comprehensive income effect of reduction in uk corporation tax rate to 20 2013 23 02 02
end of year  29 192 
movement in unrecognised deferred tax  
2014
£m  
2013
£m 
beginning of the year 40 07 
prior year adjustments – 04
current year movement in income statement 117 15 
current year movement in other comprehensive income 19 – 
asset held for resale  – 22 
disposal of asset previously classified as held for resale 22 – 
foreign exchange 01 – 
end of year  153 40 
strategic report 
governance
financial statements
company information
93
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
94 
scapa group plc   
annual report and accounts 2014 
10 lossearnings per share continued 
 
2014 
 
2013
restated
 
lossprofit attributable to equity holders of the company £m 67 12 
weighted average number of ordinary shares in issue m 1464 1461 
basic lossearnings per share p 46 08 
weighted average number of shares in issue including potentially dilutive shares m 1514 1534 
diluted lossearnings per share p 44 08 
underlying earnings per share p 72 55 
 
11 dividend per share  
a final dividend of 10p per share is proposed for the year ended 31 march 2014 2013 05p  
12 acquisition of subsidiary 
there were no acquisitions during the year 
on 22 december 2011 the group acquired the assets and liabilities of webtec a usbased leading contract manufacturer and fullservice converter 
printer and packager of adhesive backed medical devices total consideration for the acquisition was £272m and the fair value of net assets acquired 
was £142m resulting in goodwill recognition of £130m of the consideration of us450m us300m was settled in cash with us150m of 
contingent consideration the contingent consideration had a twoyear payout maturity with any shortfall from year one having the potential to be paid 
in year two subject to performance  
during the year ended 31 march 2013 £51m of the contingent consideration was paid a further £22m was paid during the year ended 31 march 
2014 and the remaining contingent consideration £22m was released through the income statement as exceptional income see note 4 
13 goodwill 
the carrying value of the group’s goodwill is not subject to annual amortisation and was tested for impairment at march 2014 the recoverable 
amount has been determined on a value in use basis on each cashgenerating unit using the management approved 12month forecasts for each 
cashgenerating unit the base 12month projection is inflated by 30 up to year 5 which management believes does not exceed the longterm 
average growth rate for the industry and then kept constant for years 6 to 20 these cash flows are discounted at a pretax discount rate of 97 and 
adjusted for specific risk factors that take into account the sensitivities of the projection terminal values are not used in the calculations the group 
has conducted a sensitivity analysis on the impairment test if the assumed growth rate in years 2–5 was reduced to 0 the recoverable amount of all 
cashgenerating units individually would remain greater than their carrying values an increase in the pretax discount rate to 146 would equally 
result in positive headroom on the carrying value of goodwill for each cashgenerating unit 
the pretax discount rate used by the group has increased from 95 in the prior year to 97 for the year ending 31 march 2014 this increase 
follows a change in risk rates used in calculating the discount rate although the group’s discount rate has declined a number of peers in the 
benchmark group saw risk rate increases as a result the overall pretax discount rate has increased to 97  
goodwill relates to the acutek medical operation £115m 2013 £127m and webtec medical operation £126m 2013 £137m 
 
2014 
£m 
2013
£m 
cost   
1 april 496 472 
exchange differences 56 24 
31 march 440 496 
accumulated amortisation and impairment   
1 april 232 221
exchange differences 33 11
31 march 199 232
net book value at 31 march 241 264 
notes on the accounts continued
94
scapa group plc  
annual report and accounts 2014  
 
95 
scapa group plc 
annual report and accounts 2014 
14 other intangible assets 
the acquisition of webtec in december 2011 brought significant benefit to the group in terms of customers relationships and technology ‘knowhow’ 
these benefits have been valued under ifrs 3 using estimates of useful lives and discounted cash flows of expected income the values are being 
amortised over useful economic lives of three to six years the threeyear period is being used on the committed contracts and the longer period is 
being used for the technology and knowhow where the benefits are likely to crystallise over a longer period no value has been assigned to brand 
names as webtec is a contract manufacturer and inherent brand value resides with customers rather than the manufacturer 
 
contracts in 
progress 
£m 
customer 
relationships 
£m 
customer lists and 
sales pipeline  
£m 
technology and 
knowhow
£m 
total
£m 
cost      
1 april 2012  11 33 22 04 70 
exchange differences  01 01 01 – 03 
31 march 2013 and 1 april 2013 12 34 23 04 73 
exchange differences 01 03 02 – 06
31 march 2014 11 31 21 04 67 
amortisation      
1 april 2012  01 02 01 – 04
exchange differences – 01 – – 01
charge for the year  04 06 04 01 15
31 march 2013 and 1 april 2013 05 09 05 01 20
exchange differences – 01 01 – 02 
charge for the year 04 07 03 01 15
31 march 2014 09 15 07 02 33
carrying amount      
31 march 2014 02 16 14 02 34 
31 march 2013  07 25 18 03 53 
      
remaining useful economic life 05 years 25 years 375 years 375 years  
strategic report 
governance
financial statements
company information
95
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
96 
scapa group plc   
annual report and accounts 2014 
15 property plant and equipment 
the group has not revalued any item of property plant and equipment impairment of property plant and equipment of £04m was booked in the prior 
year following a review of the projected future cash flows relating to an asian site 
 
freehold land 
and buildings  
£m 
long leasehold 
buildings 
£m 
plant and 
machinery 
£m 
furniture fittings 
and equipment 
£m 
it  
systems 
£m 
assets under 
construction 
£m 
total 
£m 
cost         
1 april 2012  192 83 890 52 181 06 1404 
exchange differences  05 – 16 01 02 – 24 
additions  – 01 19 01 08 16 45 
disposals  – – 02 – 05 – 07
transfer to assets and disposal 
group held for resale note 16 31 – 03 – – – 34
transfers – – 10 – – 10 – 
31 march 2013 and 1 april 2013  166 84 930 54 186 12 1432 
exchange differences  13 01 48 02 05 – 69
additions  02 03 34 01 02 10 52 
disposals  – – 09 – 01 – 10
transfers – – 09 – – 09 – 
31 march 2014  155 86 916 53 182 13 1405 
accumulated depreciation         
1 april 2012  98 44 657 44 157 – 1000
exchange differences  02 – 09 01 01 – 13
depreciation  05 03 33 02 09 – 52
impairment of assets – – 04 – – – 04
transfer to assets and disposal 
group held for resale note 16 13 – 01 – – – 14 
disposals – – 02 – 05 – 07 
31 march 2013 and 1 april 2013 92 47 700 47 162 – 1048
exchange differences  05 – 31 02 04 – 42 
depreciation  05 02 33 02 10 – 52
disposals – – 09 – 01 – 10 
31 march 2014 92 49 693 47 167 – 1048
carrying amount         
31 march 2014 63 37 223 06 15 13 357 
31 march 2013 74 37 230 07 24 12 384 
notes on the accounts continued
96
scapa group plc  
annual report and accounts 2014  
 
97 
scapa group plc 
annual report and accounts 2014 
15 property plant and equipment continued 
assets held under finance leases capitalised and included in property plant and equipment are as follows 
during the year ending march 2014 there were no events or changes in circumstance that would indicate the carrying value of property plant and 
equipment may not be recoverable  
16 assets and directly associated liabilities classified as held for sale 
a dormant site in carlstadt usa was sold on 26 april 2013 and the ownership transferred to a third party the disposal generated a profit on disposal 
of £03m 2013 £nil reported as part of the profit on disposal of property plant and equipment and other assets in note 3 
on 25 april 2013 the group signed a sales agreement with a third party to sell the branly site in valence france the disposal generated a profit of 
£10m 2013 £nil included in the profit on disposal of property plant and equipment in note 3 additionally owing to the size of the profit on disposal 
the item has also been separately disclosed as exceptional income in note 4 
on 15 april 2013 the board disposed of two 100owned subsidiary undertakings scapa holdings georgia inc and scapa waycross inc together 
‘georgia’ the net assets of georgia along with the associated asbestos liabilities transferred on disposal of georgia to its new owner there is no 
profit or loss on disposal in the current year as the disposal group was impaired to fair value in the prior year 
the results of the disposal group held for sale which have been included in the consolidated income statement are as follows 
there is no tax chargecredit to the income statement attributable to the disposal group 
 
2014
£m 
2013
£m 
cost  11 09 
accumulated depreciation  03 02
net book amount 08 07 
assets classified as held for sale 
2014
£m 
2013
£m 
carlstadt site – 06 
branly site – transferred from property plant and equipment note 15 – 20 
assets of disposal group held for sale see below – 258 
carrying value at 31 march – 284 
   
liabilities directly associated with assets classified as held for sale   
liabilities of disposal group held for sale see below – 257 
carrying value at 31 march – 257 
 
2014
£m  
2013
£m 
release of asbestos litigation costs provision note 24 – 04 
asbestos litigation claims release notes 4 24  – 18 
asbestos litigation insurance asset note 4 – 18
discount on assets note 8 – 06 
discount on provision notes 8 24 – 08
net profit attributable to disposal group assets held for sale – 02 
strategic report 
governance
financial statements
company information
97
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
98 
scapa group plc   
annual report and accounts 2014 
17 inventory 
the material and overhead element of inventory recognised as an expense and included in the income statement amounted to £1150m  
2013 £1042m 
there is no material difference between the balance sheet value and the fair value less costs to sell 
18 trade and other receivables 
the carrying amounts of these receivables are denominated in the following currencies 
all amounts due after more than one year are denominated in us dollars management review individual receivables and provide for overdue amounts 
specifically 
at the year end the following trade receivables balances were overdue but not impaired 
overdue analysis includes impact of foreign exchange movements historically customer default is low the credit quality of the year end receivables 
balance is considered high as such all of the above amounts are considered recoverable 
 
2014 
£m  
2013
£m 
raw materials 88 103 
work in progress 59 57 
finished goods 94 76 
 241 236 
 
2014 
£m 
2013
£m 
amounts due within one year   
trade receivables 402 385 
less provisions for impairment 08 08
trade receivables – net 394 377 
other debtors 13 13 
prepayments and accrued income 16 15 
total amounts due within one year 423 405 
amounts due after more than one year   
other debtors  – 03 
total amounts due after more than one year – 03 
 
2014 
£m 
2013
£m 
pounds sterling  47 47 
us dollars  161 150 
euros  170 157 
other  45 51 
 423 405 
 
2014 
£m 
2013
£m 
less than 1 month 22 19 
between 1 and 3 months 06 04 
 28 23 
notes on the accounts continued
98
scapa group plc  
annual report and accounts 2014  
 
99 
scapa group plc 
annual report and accounts 2014 
18 trade and other receivables continued 
the movement in the impairment provision for trade receivables is as follows 
included in the impairment provision are individually impaired trade receivables with a gross balance of £11m 2013 £08m the impairment 
recognised represents the difference between the carrying amount of these trade receivables and the present value of the expected proceeds 
ageing of impaired trade receivables 
19 cash and cash equivalents  
cash and bank overdrafts include the following for the purposes of the cash flow statement  
20 trade and other payables 
the carrying amounts of these payables are denominated in the following currencies 
 
 
2014
£m 
2013
£m 
opening provision at 1 april 08 07 
charge for the year 01 01 
receivables written off in the year 01 – 
closing provision at 31 march 08 08 
 
2014
£m 
2013
£m 
greater than 3 months 08 08 
 08 08 
 
2014
£m 
2013
£m 
cash and cash equivalents  136 126 
bank overdrafts – – 
 136 126 
 
2014
£m 
2013
£m 
amounts due within one year    
trade payables and trade accruals 306 282 
other taxes and social security 43 46 
other creditors 82 85 
 431 413 
amounts due after more than one year   
other creditors 02 03 
 02 03 
 
2014
£m 
2013
£m 
amounts due within one year   
pounds sterling 105 90 
us dollars 120 124 
euros 163 154 
other 43 45 
 431 413 
strategic report 
governance
financial statements
company information
99
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
100 
scapa group plc   
annual report and accounts 2014 
20 trade and other payables continued 
trade payables principally comprise amounts outstanding for trade purchases and ongoing costs the average credit period taken for trade purchases 
is 85 days 2013 85 days stated using the nonlabour element of cost of goods sold the group has financial risk management policies in place to 
ensure that all payables are paid within the preagreed credit terms 
21 borrowings 
in january 2014 the group entered into a new committed multicurrency facility with a club of three uk banks the principal features of the facility are 
• 
the committed value of the facility is £40m 
• 
there is access to an uncommitted accordion of an additional £20m 
• 
it is unsecured 
• 
it is repayable in june 2018 
• 
the interest payable on drawings under the loan is based on interbank interest plus a sliding scale margin determined by the group’s leverage 
the margin is currently 15 
• 
the facility has two covenants – the ratio of ebitda to interest pa id must be above 41 and the ratio of ebitda to net debt mu st be less than 3 
reducing to 25 over time 
the us dollar interest rate exposure is mitigated via swap contracts entered into in january 2012 – see note 22 the carrying value of borrowings  
is approximate to their fair value the effective interest rates including swap interest rates at the balance sheet date were as follows 
the carrying amounts of the group’s borrowings are denominated in the following currencies 
the total borrowings figure is presented net of unamortised debt issue costs of £05m 2013 £02m 
 
2014 
£m 
2013
£m 
amounts due after more than one year   
pounds sterling 01 03 
us dollars 01 – 
 02 03 
 
2014 
£m 
2013
£m 
amounts due within one year   
bank loan – 01 
finance leases 01 02 
 01 03 
amounts due after more than one year   
bank loan 80 100 
finance leases 01 01 
 81 101 
total borrowings 82 104 
 
us and
 canadian dollars 
31 march 2014 – bank loans and overdrafts 36 
31 march 2013 – bank loans and overdrafts 25 
 
2014  
£m 
2013
£m 
pounds sterling  01 03 
us dollars 81 101 
 82 104 
notes on the accounts continued
100
scapa group plc  
annual report and accounts 2014  
 
101 
scapa group plc 
annual report and accounts 2014 
21 borrowings continued 
movements in forward currency contracts used to hedge against the exposure to exchange differences due to the timing of cash flows are taken 
through the income statement as it is not group policy to hedge account for these instruments at 31 march 2014 financial assets have been 
recognised in the balance sheet relating to the fair values of forward foreign exchange contracts in place totalling less than £01m 2013 liability 
£01m see note 22  
the group has the following undrawn borrowing facilities this includes committed and uncommitted 
22 derivative financial instruments 
the group’s activities expose it to a variety of financial risks foreign exchange risk interest rate risk credit risk liquidity risk and capital risk the 
group’s overall risk management procedures focus on the unpredictability of financial markets and seek to minimise potential adverse effects on the 
group’s financial performance risk management is carried out by the group finance department in close cooperation with the operating units under 
policies approved by the board of directors  
– foreign exchange risk  
the group operates internationally and is exposed to foreign exchange risk arising from various currency exposures primarily with respect to the  
us dollar canadian dollar and the euro foreign exchange risk arises from future commercial transactions recognised assets and liabilities and net 
investments in foreign operations as the group has certain investments in foreign operations these net assets are exposed to foreign currency 
translation risk  
to manage its foreign exchange risk the group uses foreign currency bank balances and makes some use of foreign currency forward contracts to 
avoid shortterm fluctuations in currencies in addition purchases of large items of capital in foreign currency are covered by forward contracts at the 
point of authorisation  
it is the policy of the group to enter into forward foreign exchange contracts to cover specific foreign currency payments and receipts the contracts 
are primarily denominated in the currencies of the group’s principal markets at the year end the group had forward contracts to sell canadian dollars 
into us dollars and to sell euros into sterling fair value is determined using quoted forward exchange rates and yield curves derived from quoted 
interest rates matching maturities of the contracts  
the forward contracts in the table above have maturity dates ranging from april 2014 to july 2014 
hedge accounting has not been applied to these derivative financial instruments 
an analysis of the sensitivity of the year end position relative to these forward contracts is provided below  
at 31 march 2014 if the canadian dollar had closed 10 weakerstronger against the us dollar with all other variables held constant pretax profit 
would have been reducedincreased by £01m 2013 £nil  
at 31 march 2014 if sterling had closed 10 weakerstronger against the euro with all other variables held constant pretax profit would have been 
reducedincreased by £02m£02m 2013 £06m£05m owing to the effects of forward contracts in place at the year end 
– interest rate risk 
the group is exposed to interest rate risk as it has borrowings at floating rates interest rate risk is evaluated periodically to consider interest rate views 
and defined risk appetite to seek to ensure that reasonable economic strategies are applied by either positioning the balance sheet or protecting 
interest expense through different interest rate cycles deposit risk is managed by spreading deposits across high credit rated institutions and capping 
the maximum deposit with an institution at one time  
the group entered into an interest rate swap instrument in june 2012 this instrument enabled the group to mitigate interest rate fluctuation risk 
under interest rate swap contracts the group agrees to exchange the difference between fixed and floating rate interest amounts calculated on 
agreed notional principal amounts such contracts enable the group to mitigate the risk of changing the cash flow exposures on the issued variable 
rate debt held the fair value of the interest rate swaps at the reporting date is determined by discounting the future cash flows using the curves at  
the reporting date and the credit risk inherent in the contracts  
 
2014
£m 
2013
£m 
bank loan  315 100 
overdrafts 16 01 
 
notional amount
2014
£m 
fair value 
2014 
£m 
notional amount
2013
£m 
fair value
2013
£m 
current    
forward foreign exchange contracts 30 – 77 01
strategic report 
governance
financial statements
company information
101
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
102 
scapa group plc   
annual report and accounts 2014 
22 derivative financial instruments continued 
the following table details the notional principal amounts and remaining terms of interest rate swap contracts outstanding at the reporting date 
the fair value of the interest rate swaps at 31 march 2014 was determined by discounting the future cash flows using yield curve data at the reporting 
date the interest rate swaps settle on a quarterly basis the group will settle the difference between the fixed and floating interest rates on a net basis 
hedge accounting has not been applied to these derivative instruments  
at 31 march 2014 if the us libor interest rate had been 01 higherlower pretax profit would have been unaffected because of the low value  
of contracts in place at the year end 
– commodity price risk  
the group is exposed to commodity price risk as it buys a number of commodity products that are vital to its production process the group mitigates 
this risk by fixing pricing with its suppliers where possible the contracts entered into continue to be held for the purpose of the receipt of the 
commodity in accordance with the group’s expected purchase or usage requirements there is no intention to resell the commodities bought 
– liquidity risk  
the group maintains a mixture of committed longterm and shortterm facilities designed to ensure that the group has sufficient cash funds available 
for operations and planned investment  
liquidity tables 
the following tables detail the group’s contractual maturity for financial instruments the tables are drawn up on the undiscounted cash flows of 
financial liabilities based on the earliest date on which the group can be required to pay the tables exclude asbestosrelated assets and liabilities 
 
 
 trade date effective date termination date currency 
notional 
amount 
£m 
fair value 
£m 
fixed rate
 
outstanding receive fixed pay 
floating contracts 2014 25 january 2012 8 march 2012 9 march 2015 usd 180 01 078 
outstanding receive fixed pay 
floating contracts 2013 25 january 2012 8 march 2012 9 march 2015 usd 197 02 078 
 
due within  
one year 
£m 
one to  
two years 
£m 
two to
five years
£m 
2014    
trade payables 306 – – 
other taxes and social security 43 – – 
other creditors 82 02 – 
finance leases 01 01 – 
bank loans and overdrafts – – 80 
 432 03 80 
 
due within 
 one year 
£m 
one to  
two years 
£m 
two to 
five years
£m 
2013    
trade payables 282 – – 
other taxes and social security 46 – – 
other creditors 85 02 01 
finance leases 02 01 – 
deferred consideration 46 – – 
bank loans and overdrafts 01 – 100 
 462 03 101 
notes on the accounts continued
102
scapa group plc  
annual report and accounts 2014  
 
103 
scapa group plc 
annual report and accounts 2014 
22 derivative financial instruments continued 
there are no items with a maturity greater than five years the bank loans in the above tables are stated before any unamortised arrangement costs 
the following tables detail the group’s contractual maturity for financial assets the tables are drawn up based on the undiscounted contracted 
maturities of those financial assets 
 
in accordance with ifrs 7 improving disclosures about financial instruments the group’s financial instruments are considered to be classified as 
level 2 instruments level 2 fair value measurements are those derived from inputs other than unadjusted quoted prices in active markets level 1 
categorisation that are observable for the asset or liability either directly ie as prices or indirectly ie derived from prices 
– credit risk  
the group has no significant concentrations of credit risk it has policies in place to ensure that sales of products are made to customers with an 
appropriate credit history derivative counterparties and cash transactions are spread across a number of financial institutions the european and 
north american businesses obtain third party credit insurance on worldwide sales subject to specific exclusions excesses and total policy limits 
the credit risk position for our major customers is detailed below this shows a fairly predictable level of credit utilisation across the regions and years 
and highlights that there is no concentration of credit risk with respect to trade receivables  
europe  
the top five customers by balance at 31 march 2014 had a total receivable of £19m versus their cumulative credit limit of £37m  
the top five customers at 31 march 2013 had a total receivable of £22m versus their cumulative credit limit of £40m  
north america  
the top five customers by balance at 31 march 2014 had a total receivable of £80m versus their cumulative credit limit of £166m  
the top five customers at 31 march 2013 had a total receivable of £75m versus their cumulative credit limit of £88m 
asia  
the top five customers by balance at 31 march 2014 had a total receivable of £06m versus their cumulative credit limit of £08m  
the top five customers at 31 march 2013 had a total receivable of £06m versus their cumulative credit limit of £08m  
 
due within 
one year 
£m 
one to 
two years 
£m 
two to
 five years 
£m 
2014    
receivables 423 – – 
cash and cash equivalents 136 – – 
 559 – – 
2013    
receivables 405 03 – 
cash and cash equivalents 126 – – 
 531 03 – 
strategic report 
governance
financial statements
company information
103
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
104 
scapa group plc   
annual report and accounts 2014 
23 capital risk 
the group defines the capital that it manages as the group’s total equity the group’s primary objective when managing capital is to safeguard the 
group’s ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders the group must ensure 
that sufficient capital resources are available for working capital requirements and meeting principal and interest payments as they fall due in order to 
ensure that sufficient capital is available the group may adjust the amount of new shares issued return capital to shareholders alter its dividend policy 
or dispose of assets to reduce net debt 
the group monitors capital using the following main indicators 
gearing ratio 
2014 
  
£m 
2013
restated

 
£m 
total equity £m 477 656 
total assets £m 1515 1999 
equity ratio 31 33 
 
net debt to ebitda comprises net debt divided by operating profit before depreciation amortisation and impairment charges 
ebitda interest cover 
2014 
  
£m 
2013
restated

 
£m 
ebitda £m 201 188 
net interest payable £m 05 05
interest cover times 40 38 
 
ebitda interest cover comprises operating profit before depreciation amortisation and impairment charges divided by net interest payable on bank 
overdrafts and loans other loans and bank deposits 
the group’s principal loan covenants are ebitda interest cover ebitda being at least 4 times the net interest payable and net debt to ebitda ratio 
net debt being less than 3 times adjusted ebitda declining over time to 25 
24 provisions 
 
asbestos litigation 
claims
£m 
asbestos litigation 
costs
£m 
reorganisation
and leasehold 
commitments
£m 
environmental
£m 
total
£m 
at 1 april 2013  – – 26 03 29 
exchange differences – – 01 – 01
additions in the year – – 07 06 13 
release in year – – – 01 01
utilised in the year – – 04 01 05
at 31 march 2014 – – 28 07 35 
analysis of provisions       
current  – – 08 06 14 
noncurrent  – – 20 01 21 
at 31 march 2014 – – 28 07 35 
 
net debt to ebitda ratio 
2014 
  
£m 
2013
restated

 
£m 
net debt £m  – – 
ebitda £m 201 188 
net debt to ebitda ratio nil nil 
notes on the accounts continued
104
scapa group plc  
annual report and accounts 2014  
 
105 
scapa group plc 
annual report and accounts 2014 
24 provisions continued 
 
asbestos litigation 
claims
£m 
asbestos litigation 
costs
£m 
reorganisation  
and leasehold 
commitments 
£m 
environmental
£m 
total
£m 
at 1 april 2012  205 55 25 04 289 
exchange differences 11 03 – – 14 
additions in the year – – 03 – 03 
release in year note 16 18 04 – – 22
utilised in the year – 03 02 01 06
unwinding of discount notes 8 16 06 02 – – 08 
transfer to liabilities and disposal group held for 
resale note 16 204 53 – – 257
at 31 march 2013 – – 26 03 29 
analysis of provisions       
current  – – 05 01 06 
noncurrent  – – 21 02 23 
at 31 march 2013 – – 26 03 29 
– asbestos litigation claims and asbestos litigation costs 
on 15 april 2013 the group disposed of its 100owned subsidiary undertakings scapa holdings georgia inc and scapa waycross inc following 
these disposals the group has no ongoing exposure to any associated asbestosrelated claims or litigation defence costs previously held within these 
companies see note 16 
– reorganisation and leasehold commitments  
the £28m 2013 £26m reorganisation provision relates to dilapidations for leasehold property of £15m 2013 £14m £07m 2013 £07m for  
a land value guarantee related to a disposal in 2007 and £06m 2013 £05m in relation to reorganisation costs  
whilst the timing of the economic benefits relating to the noncurrent provisions cannot be ascertained with any degree of certainty the leasehold 
commitments are expected to take place within the next one to two years  
– environmental provisions  
environmental provisions relate to expected costs required to clean up environmental contamination of a number of sites in both europe of £05m 
2013 £01m and north america of £01m 2013 £02m the group expects the majority of the spend against the environmental provisions to be 
incurred over the next four years 
25 retirement benefit obligations  
– defined contribution schemes  
the group operates a number of defined contribution schemes employer’s contributions are charged to the income statement as incurred the total 
pension cost for the group in respect of these schemes for the year ended 31 march 2014 was £18m 2013 £17m the assets of these schemes 
are held in independently administered funds 
– defined benefit schemes  
the total amounts recognised in the group financial statements for defined benefit schemes are summarised on pages 105 to 110  
a uk schemes  
by far the largest defined benefit scheme in the group is in the uk at april 2013 there were two schemes in the uk called the scapa group senior 
retirement benefits scheme srbs and the scapa tapes uk ltd pension plan with the srbs holding assets and liabilities from another legacy 
scheme on a sectionalised basis during the year all of these schemes were merged into a new single scheme called the scapa group plc pension 
scheme all assets and liabilities in the scapa group plc pension scheme are held on a nonsectionalised basis  
the merger resulted in a number of liabilities associated with the schemes being extinguished at an amount lower than their carrying value resulting  
in a settlement gain of £02m 2013 £11m the preceding schemes are now all in the process of being wound up 
the new scheme is closed to new members and future accrual and is wholly funded by the sponsoring employers including reference to the 
preceding schemes entry to new members and additional accrual from service has been closed since 200708 
the assets of the schemes are held separately from company assets under trust the new scheme is managed by a single professional trustee 
strategic report 
governance
financial statements
company information
105
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
106 
scapa group plc   
annual report and accounts 2014 
25 retirement benefit obligations continued 
the ias 19 retirement benefits valuations have been updated from the prior year by the scheme actuaries using formal valuation calculations  
carried out as at 1 april 2012 in order to assess the liabilities of the schemes at 31 march 2014 scheme assets are stated at their market value  
at 31 march 2014  
– funding arrangement 
on 11 march 2013 scapa group plc agreed an assetbacked funding arrangement with the trustees of the uk pension funds to help address the uk 
pension funding deficit the assetbacked funding structure provides £375 million cash per annum to the uk pension funds the present value of this 
funding stream is recognised as an investment of the uk pension funds and removes the funding deficit on actuarial valuation  
the contributions under the assetbacked structure are as follows  
•
the arrangement provides a cash flow of £375m per year subject to retail prices index rpi indexation  
•
the company pays £035m per year subject to rpi indexation towards the administration costs of the scheme 
•
the company pays nonadministration costs as agreed on a project by project basis with the trustee 
the first payments under the assetbacked arrangement were made during the year being £375m from the assetbacked structure £035m of 
administration costs and £045m of costs related to finalising the assetbacked arrangement merging the schemes and processing the winding  
up of the preceding schemes  
under the old schedule of contributions the company was able to defer certain deficit repair contributions a final payment under this deferral 
arrangement was made in april 2013 of £06m and is therefore reported in the disclosures for the current year  
b overseas schemes  
the group operates a number of pension schemes in different countries there are several small defined benefit schemes and a number of defined 
contribution schemes in addition in certain countries the group must provide for various employee termination benefits these are accounted for as  
if they were defined benefit pension schemes the total defined benefit pension charge to operating profit for the group in respect of overseas pension 
schemes for the year ended 31 march 2014 was £04m 2013 £04m the forecast future contributions into these schemes are expected to be 
similar to the current year contributions but are subject to the number and nature of leavers in any period 
details of the group’s material overseas defined benefit schemes are as follows  
– north america  
the group operates three pension plans in north america a funded defined benefit scheme and two unfunded pension plans the defined benefit 
scheme was closed during the prior year and all three schemes are therefore now closed to new members and future accrual the disclosures are 
based on the most recent actuarial valuations of liabilities and asset market values at 31 march 2014 
– france 
the group operates an unfunded statutory retirement benefit scheme in france liabilities £31m with payments made to employees on retirement 
– italy  
there is an unfunded statutory termination indemnity plan in italy with payments made to employees on retirement or termination of service the italian 
scheme is closed to future accrual following changes in local legislation in 2013 liabilities £08m  
– switzerland  
the group has an insured retirement fund in switzerland that is accounted for under ias 19 
set out below are the key financial assumptions used to calculate scheme liabilities under ias 19 given the relative size of the schemes the age profile 
and sensitivities are only provided for the uk  
the salary increase assumption is no longer relevant in the uk as all uk schemes are now closed to future accrual all uk schemes include  
an allowance for administration expenses and ppf levy in the value of accrued benefits  
 uk  north america france italy switzerland
 2014  2013  2014  2013 2014  2013 2014  2013  2014  2013 
discount rate  440 435 467 475 300 300 175 180 260 260 
salary rises  – – – – – – – – 185 185 
           
price inflation rpi 345 345 300 300 200 200 225 225 140 140 
price inflation cpi 265 265 – – – – – – – – 
pension rises  280 to 
360 
265 to 
360 
– – – – – – – – 
deferred pension rises  265 265 – – – – – – – – 
notes on the accounts continued
106
scapa group plc  
annual report and accounts 2014  
 
107 
scapa group plc 
annual report and accounts 2014 
25 retirement benefit obligations continued 
the expected investment returns have been calculated using the weighted average of the expected investment returns for the different asset classes 
the expected return on investments for the uk schemes are set out in the table below the expected return on investment for the overseas schemes 
is not a key judgement given the small asset values 
the assumptions relating to uk longevity underlying the pension liabilities at the balance sheet date are based on standard actuarial mortality tables 
with adjustments to reflect actual experience for the year to 31 march 2014 the ias 19 calculations have been performed using standard actuarial 
tables known as s1pa with an adjustment or loading to broadly reflect the membership profile of the scheme the movement to a single loading 
for the scheme has had a small negative impact on the scheme compared with using multiple loadings for each scheme in the prior year future 
improvements in mortality have been allowed for using the core cmi 2011 model with a longterm rate of improvement of 1 per annum for a male 
currently aged 65 this equates to a life expectancy of 867 years and for a female currently aged 65 a life expectancy of 895 years a male and 
female reaching age 65 in 2030 would have a life expectancy at that time of 877 years and 908 years respectively 
actuarial assumption sensitivities  
the calculation of the schemes’ deficits is sensitive to changes in the underlying assumptions listed above the following tables show the approximate 
effect of changes in the key assumptions on the uk scheme’s liabilities and deficit at the year end these are approximate and only show the likely 
effect of an assumption being adjusted whilst all other assumptions remain the same 
note that sensitivities are not provided for the overseas schemes because the materiality of the results is not significant 
the amounts recognised in the balance sheet are determined as follows 
uk schemes 
2014
 
expected 
rate of return 
2014 
  
value  
£m 
2013
 
expected 
rate of return 
2013
restated

 
value
 £m 
equities  750 506 750 507 
property 750 26 750 24 
government bonds 310 397 310 432 
corporate bonds 435 197 435 185 
cash 310 21 310 04 
other 750 57 750 66 
total market value of assets   1204  1218 
present value of scheme liabilities  1559  1563
net deficit in the schemes  355  345
 
 
uk
2014 
£m 
rate of inflation 
 
change in the year end liabilities from a 01 increase in the assumed rate of inflation  11
change in the year end liabilities from a 01 decrease in the assumed rate of inflation 11 
discount rate 
 
change in the year end liabilities from a 01 increase in the assumed rate of discount 22
change in the year end liabilities from a 01 decrease in the assumed rate of discount 24 
mortality 
 
life expectancy of members increases by 1 year 61 
life expectancy of members decreases by 1 year 61
strategic report 
governance
financial statements
company information
107
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
108 
scapa group plc   
annual report and accounts 2014 
25 retirement benefit obligations continued 
 
french scheme  
2014 
  
value 
 £m  
2013
restated

 
value
 £m 
present value of scheme liabilities  31  31
net deficit in the schemes  31  31
 
 
italian scheme  
2014  
value 
 £m  
2013
value
 £m 
present value of scheme liabilities  08  08
net deficit in the scheme  08  08
 
expected return on plan assets is 266 2013 266 
the amounts recognised in the income statement are as follows 
 
 
swiss scheme  
2014  
value 
 £m  
2013
value
 £m 
total market value of assets  110  107 
present value of scheme liabilities  110  108
net deficit in the scheme  –  01
north american schemes 
2014
expected
 rate of return 
2014  
value  
£m 
2013  
expected  
rate of return 
2013
value 
£m 
equities  70 54 70 48 
bonds  30 51 30 58 
other  30 08 30 06 
total market value of assets  113  112 
present value of scheme liabilities  120  139
net deficit in the schemes  07  27
 
2014 
 
£m 
2013
restated

£m 
current service cost  05 04
settlement 02 11 
total included within staff costs 03 07 
   
expected return on scheme assets less interest on scheme liabilities 16 12
total included within finance costs  16 12
total expenses charged through the income statement  19 05
notes on the accounts continued
108
scapa group plc  
annual report and accounts 2014  
 
109 
scapa group plc 
annual report and accounts 2014 
25 retirement benefit obligations continued 
the amounts recognised in the statement of comprehensive income are as follows 
 
the amounts recognised in the balance sheet are as follows 
analysis of movements in scheme assets 
 
2014
£m 
2013
restated

£m 
beginning of the year  1437 1334 
exchange differences 11 06 
expected return on scheme assets  56 58 
actual return less expected return on scheme assets  08 105 
contributions paid  51 46 
benefits paid  98 112
end of the year  1427 1437 
 
analysis of movement in scheme liabilities  
 
2014
£m 
2013
restated

£m 
beginning of the year  1849 1649
exchange differences 13 09
current service cost included within staff costs  05 04
settlement included within staff costs 02 11 
interest on scheme liabilities  72 70
experience gainslosses 06 241
changes in assumptions  20 01 
benefits paid  98 112 
end of the year  1827 1849
 
 
2014
£m 
2013
restated

£m 
actual return less expected return on scheme assets 08 104 
experience gainslosses arising on scheme liabilities 06 36
changes in assumptions underlying the present value of the scheme liabilities 
− demographic assumptions 24 09
− financial assumptions 04 194
total amounts recognised in the statement of comprehensive income  22 135
strategic report 
governance
financial statements
company information
109
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
110 
scapa group plc   
annual report and accounts 2014 
25 retirement benefit obligations continued 
analysis of movement in balance sheet liability  
cumulative actuarial losses on pension schemes recognised in reserves total £362m 2013 restated

 £340m  
 
26 prior period restatement 
the accounting for the group’s defined benefit pension scheme obligation has been impacted by the adoption in the year of ias 19 revised and  
its related amendments the most significant change for the group is the release of provisions for future scheme management costs previously  
these were held within the retirement benefit obligation in the balance sheet and the associated costs were not separated out in the income 
statement in addition the interest cost and expected return on plan assets have been replaced with a net interest charge on the net defined  
benefit liability the pension administration costs for the current period are £08m 2013 restated

 £16m the ias 19 revised finance costs  
are £16m 2013 restated

 £12m prior year comparatives have been restated and details of the impact are given in the tables below 
impact on the retirement benefit obligations and deferred tax asset 
 
 
2014 
 
£m 
2013
restated

£m 
beginning of the year  412 315
exchange differences  02 03
income statement expense 19 05
statement of comprehensive income items 02 68 
changes in assumptions 20 203
contributions paid  51 46 
net deficit in the schemes 400 412
 
2014
 
 
£m 
2013
ias 19 
revised
£m 
2012 
ias 19 
 
£m 
2011 
ias 19 
 
£m 
2010
ias 19 
 
£m 
present value of defined benefit obligations 1827 1849 1723 1509 1508
fair value of plan assets 1427 1437 1334 1159 1122 
deficit in the plan 400 412 389 350 386
experience adjustments on plan liabilities 14 240 243 05 112
 08 130 141 03 74
experience adjustments on plan assets 08 105 134 18 197 
 06 73 100 16 176 
31 march 2013 31 march 2012
 
retirement
benefit
obligations
£m 
deferred 
tax asset 
£m 
retirement 
benefit 
obligations 
£m 
deferred
tax asset
£m 
as previously reported 462 106 389 93 
prior period adjustment 50 12 74 18
as restated 412 94 315 75 
notes on the accounts continued
110
scapa group plc  
annual report and accounts 2014  
 
111 
scapa group plc 
annual report and accounts 2014 
26 prior period restatement continued 
impact on the consolidated income statement 
  31 march 2013 
 
 
as previously 
reported 
£m 
prior period
adjustment
£m 
as
restated
£m 
 
trading profit 137 – 137 
 
 
amortisation of intangible assets 15 – 15
 
exceptional items 11 – 11 
 
 
pension administration costs – 16 16
 
operating profit 133 16 117 
 
 
finance costs 10 11 21
 
profit before tax 123 27 96 
 
 
tax 84 – 84
 
tax on operating activities 45 04 49
 
tax on exceptional items amortisation and pension administration costs 36 04 32
 
impact of change of tax rate on deferred tax 03 – 03
 
profit for the year 39 27 12 
 
 
earnings per share    
 
 
basic earnings per share p 27 19 08 
 
 
diluted earnings per share p 26 18 08 
 
impact on the consolidated statement of comprehensive income 
 
 31 march 2013 
 
as previously 
reported 
£m 
prior period
adjustment
£m 
as
restated
£m 
profit for the year 39 27 12 
    
exchange differences on translating foreign operations 27 – 27 
actuarial lossprofit 138 03 135
deferred tax on actuarial loss  31 05 36 
effect of reduction in uk corporation tax rate on deferred tax 03 01 02
other comprehensive expense for the year 83 09 74
total recognised loss for the year 44 18 62
strategic report 
governance
financial statements
company information
111
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
112 
scapa group plc   
annual report and accounts 2014 
27 share capital 
the movement in share capital relates to the exercise of share options see below the company has one class of ordinary shares which carry  
no rights to fixed income 
potential issues of ordinary shares  
certain senior managers and other staff hold options to subscribe for shares in the company at prices ranging from nil pence per share to 426 pence 
per share under share option schemes approved by shareholders the number of shares subject to options the periods in which they were granted 
and the periods in which they may be exercised are given below  
during the year 377532 options under the 2008 and 2009 sharesave option plans and 9975 options under the 2012 threeyear option plan were 
exercised all other movements from 2013 are expired or lapsed options and new grants  
as at 31 march 2014 400000 of the options were exercisable 2009 performance share plan  
28 share options 
the group operates several share option schemes options are exercisable at a price equal to the average quoted market price of the group’s shares 
on the date of grant options are forfeited if the employee leaves the group through resignation or dismissal before the options vest 
equity settled share options are measured at fair value at the date of grant the fair value determined at the date of grant is expensed on a straightline 
basis over the vesting period based upon the group’s estimate of shares that will eventually vest 
there are no cashsettled share options 
fair value is measured by use of a black scholes model according to the relevant measures of performance the models include adjustments based 
upon management’s best estimate for the effects of exercise restrictions behavioural considerations and expected dividend payments the option life 
is derived from models based upon these assumptions and other assumptions identified below 
the group recognised total expenses of £08m 2013 £01m related to equitysettled sharebased payments this expense includes the charge for 
new options granted during the year net of release of charge for the options for which it has been concluded that vesting criteria will not be met 
– long term incentive plan  
the company has a longterm incentive plan that operates based on the 2004 and 2011 performance share plans  
options granted in 200910 and 201011 relate to the incentive plan known as the scapa group plc 2004 performance share plan which was 
approved by shareholders at the annual general meeting on 22 july 2004 awards under the plan take the form of either an annual allocation of 
ordinary shares or a grant of nil cost options over shares with a market value at the time of grant equivalent to a maximum of 100 of basic salary  
at that time with vesting taking place at the expiry of the threeyear performance period of the plan subject to attainment of the performance targets 
 
2014 
£m 
2013
£m 
allotted issued and fully paid   
146772675 2013 146385168 shares of 5p each 73 73 
scheme  year of grant  
average exercise 
price per share exercise period  
number of  
options  
2014  
number of 
options 
2013 
executive share option plan 2007 2925p up to 20 august 2017 25000 100000 
executive share option plan 2007 3275p up to 10 december 2017 75000 75000 
executive share option plan 2008 2775p up to 7 july 2018 25000 25000 
performance share plan 2009 nil pence per share up to 6 september 2019 400000 400000 
performance share plan 2011 nil pence per share up to 27 july 2021  – 680000 
performance share plan 2011 nil pence per share up to 1 december 2021  – 300000 
performance share plan 2012 nil pence per share up to 3 september 2022  3254681 4004681 
performance share plan 2013 nil pence per share up to 23 july 2023  1905000 – 
sharesave option plan 5 year 2008 2460p up to 1 september 2013 – 13658 
sharesave option plan 5 year 2009 1300p up to 1 september 2014 – 363874 
sharesave option plan 3 year 2012 4260p up to 1 september 2015 517052 547496 
sharesave option plan 5 year 2012 4260p up to 1 september 2017 80984 123237 
    6282717 6632946 
notes on the accounts continued
112
scapa group plc  
annual report and accounts 2014  
 
113 
scapa group plc 
annual report and accounts 2014 
28 share options continued 
awards in the form of an allocation of ordinary shares lapse at the end of the threeyear performance period to the extent that the performance 
conditions have not been met awards in the form of a nil cost option remain exercisable until their tenth anniversary of the date of grant subject  
to achievement of the performance conditions after which they lapse  
options granted in 201112 201213 and 201314 relate to the 2011 incentive plan known as the scapa group plc 2011 performance share plan 
details of which can be found in the directors’ remuneration report contained in these accounts 
– sharesave 
the scapa group 2011 sharesave scheme is an inland revenue approved saveasyouearn saye share option scheme options are usually 
offered annually subject to approval by the group board following the publication of the company’s preliminary results to eligible employees including 
executive directors in the united kingdom who have worked a minimum sixmonth qualifying period and agree to save a fixed amount for three or  
five years under an approved savings contract inland revenue rules limit the maximum amount that can be saved by a participant to £250 per month 
in normal circumstances options are exercisable for sixmonths following the completion of a savings contract using the proceeds from that contract 
the exercise price is based on the market value of the shares as of the date of grant less a discount of 20 
– executive share option 2004 plan 
the company operates an executive share option plan for senior executives in the uk and overseas namely the scapa group plc 2004 executive 
share option plan which was approved by shareholders at the company’s annual general meeting on 22 july 2004 
the 2004 plan provides a potential reward in shares for improvement in company performance reflected in the share price the option provides the 
opportunity to purchase shares at a fixed exercise price dependent on achievement of predetermined performance targets 
the 2004 plan has two parts an unapproved discretionary share option plan the ‘unapproved part’ and an addendum containing an inland 
revenue approved discretionary share option plan the ‘approved part’ the approved part of the 2004 plan can be used to grant options to uk 
residents with an aggregate value not exceeding £30000 all other grants of options over and above the £30000 threshold and those made to 
overseas employees are granted under the unapproved part of the 2004 plan options only become exercisable in normal circumstances three years 
after the date of grant and then may only be exercised if certain performance criteria are met options remain exercisable until the tenth anniversary of 
their date of grant after which they lapse 
the ability to exercise the option is dependent upon the achievement of predetermined performance targets based on growth in adjusted earnings 
per share eps over changes in the rpi 
the following tables show the inputs to the model used to calculate the fair value of equitysettled share options granted during the years ended 
31 march 2014 and 31 march 2013 respectively 
 
the expected volatility is based upon the historical volatility of the group’s share price over the expected life of the option 
year ended 31 march 2014 
performance share
plan awarded 
23 jul 2013 
weighted average share price p 840 
weighted average exercise price p nil 
weighted average fair value of options granted p 840 
expected volatility  na 
expected life months 36 
risk free rate  na 
year ended 31 march 2013 
performance share
plan awarded 
3 sep 2012 
weighted average share price p 615 
weighted average exercise price p nil 
weighted average fair value of options granted p 615 
expected volatility  na 
expected life months 36 
risk free rate  na 
strategic report 
governance
financial statements
company information
113
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
114 
scapa group plc   
annual report and accounts 2014 
28 share options continued 
the movement in total outstanding options is provided below 
the 2011 performance share plan options lapsed owing to failure to meet performance criteria for eps on 31 march 2014 
the weighted average share price at the date of exercise for share options exercised during the year was 1209p 
 saye plan performance share plan 
 
number of 
shares 
weighted 
average 
exercise price 
number of 
shares 
weighted
average
exercise price 
outstanding at 1 april 2012 1521244 306p 5452500 32p 
granted during the year – – 4112276 nil 
exercised during the year 278189 210p 100000 nil 
forfeited and lapsed during the year 194790 374p 3880095 31p 
outstanding at 31 march 2013 1048265 321p 5584681 11p 
granted during the year – – 1905000 nil 
exercised during the year 387507 142p – – 
forfeited and lapsed during the year 62722 426p 1805000 10p 
outstanding at 31 march 2014 598036 426p 5684681 07p 
weighted average contractual remaining life     
31 march 2014  17 years  84 years 
31 march 2013  19 years  89 years 
notes on the accounts continued
114
scapa group plc  
annual report and accounts 2014  
 
115 
scapa group plc 
annual report and accounts 2014 
29 reconciliation of operating profit to operating cash flow and reconciliation of net cash 
 
all on continuing operations 
year ended  
31 march  
2014 
 
£m 
year ended 
31 march 
2013 
restated

 
£m 
 
operating profit 134 117 
 
 
adjustments for   
 
 
depreciation and amortisation 67 67 
 
 
profit on disposal of fixed assets 13 07
 
 
impairment of tangible fixed assets – 04 
 
 
pensions payments in excess of charge 46 40
 
 
pension curtailments and past service charges 02 11
 
 
movement in fair value of financial instruments 02 01 
 
 
share options charge 08 01 
 
 
grant income released 02 02
 
 
changes in working capital   
 
 
− inventories 22 20
 
 
− trade debtors 39 35
 
 
− trade creditors 42 44 
 
 
changes in trading working capital 19 11
 
 
other debtors – 04
 
 
other creditors 07 14 
 
 
deferred consideration 22 – 
 
 
net movement in environmental provisions 04 01
 
net movement in reorganisation provisions and leasehold commitments 03 01 
 
 
net movement in asbestos litigation cost provisions – 07
 
 
net movement in asbestos litigation claims provisions – 18
 
 
net movement in asbestos insurance receivable – 18 
 
 
cash generated from operations 103 122 
 
 
   
 
 
cash generated from operations before exceptional items 101 130 
 
 
cash inflowsoutflows from exceptional items 02 08
 
 
cash generated from operations 103 122 
 
 
strategic report 
governance
financial statements
company information
115
scapa group plc 
annual report and accounts 2014 notes on the accounts continued 
 
116 
scapa group plc   
annual report and accounts 2014 
29 reconciliation of operating profit to operating cash flow and reconciliation of net cash continued 
analysis of cash and cash equivalents and borrowings  
 
at 1 april 
2013
£m 
cash 
flow
£m 
noncash  
movement 
£m 
exchange 
movement 
£m 
at 31 march 
2014
£m 
cash and cash equivalents 126 19 – 09 136 
bank overdrafts – – – – – 
 126 19 – 09 136 
borrowings within one year 03 02 – – 01
borrowings after more than one year 101 15 03 08 81
 104 17 03 08 82
total 22 36 03 01 54 
 
30 commitments  
capital commitments  
the amount contracted but not provided for in the accounts at 31 march 2014 was £09m 2013 £03m  
at 31 march 2014 a total of £32m 2013 £04m was authorised but not yet contracted  
operating lease commitments  
at 31 march 2014 the group has lease agreements in respect of various assets for which payments extend as follows  
31 obligations under finance leases  
the present value of minimum lease payments is denominated in the following currencies  
 
commitments under leases 
property 
£m 
2014 
vehicles plant  
and equipment  
£m 
property  
£m 
2013
vehicles plant 
 and equipment 
£m 
within one year  19 06 20 09 
more than one year and less than five years  23 08 43 16 
after five years  01 – 03 – 
total operating lease commitments  43 14 66 25 
 minimum lease payments 
present value of
minimum lease payments 
 
2014
£m 
2013 
£m 
2014 
£m 
2013
£m 
within one year  01 02 01 02 
in the second to fifth years inclusive 01 01 01 01 
 02 03 02 03 
less future finance charges – – – – 
present value of lease obligations 02 03 02 03 
 minimum lease payments  
 
2014
£m 
2013 
£m   
pounds sterling 01 03   
us dollar 01 –   
 02 03   
notes on the accounts continued
116
scapa group plc  
annual report and accounts 2014  
 
117 
scapa group plc 
annual report and accounts 2014 
31 obligations under finance leases continued 
it is group policy to lease certain fixtures and equipment under finance leases the group has lease agreements in the uk with lease periods from 
2009 to 2014 and average borrowing rates of 66 2013 66 in the usa with lease periods 2013 to 2018 and average borrowing rates of 94 
2013 none and in canada with lease periods 2013 to 2016 and average borrowing rates of 50 2013 none interest rates are fixed at contract 
date all leases are on fixed repayment terms and no arrangements have been entered into for contingent rental payments the fair value of the 
group’s lease obligations approximates to their carrying amount the group’s obligations under finance leases are secured by the lessors’ rights 
over the related assets 
strategic report 
governance
financial statements
company information
117
scapa group plc 
annual report and accounts 2014 five year summaries 
 
118 
scapa group plc   
annual report and accounts 2014 
five year financial summary unaudited  
the cumulative restatement arising from the adoption during the year of ias19 revised is reflected in 2013 in the table years 2010 to 2012 have not 
been restated 
exchange rates unaudited 
 
 
2014
£m  
2013
restated
£m 
2012 
 
£m 
 2011 
 
£m 
2010
£m 
group revenue  2261 2088 1956 1923 1767 
group profitslosses       
profitloss before taxation and exceptional items 110 85 91 61 21
exceptional items operating incomecharges 02 11 14 – 31
profitloss before taxation 112 96 105 61 52
taxation       
− taxation on operating activities  44 49 34 21 14 
− taxation on exceptional items  117 32 – – 10 
− impact of change in tax rate 18 03 06 05 – 
 179 84 40 26 24 
lossprofit after taxation 67 12 65 35 28
headline lossearnings per share p 46 08 45 24 05
net cash equivalents 54 22 70 125 48 
shareholders’ funds – equity 477 656 661 686 653 
net assets per share p 326 449 453 474 451 
2014 2013 2012 2011 2010
us      
− closing 167 152 160 160 152 
− average 159 158 160 156 158 
canadian      
− closing 184 154 160 156 154 
− average 168 159 159 158 174 
euro    
− closing 121 118 120 113 112 
− average 119 122 116 117 113 
five year summaries
118
scapa group plc  
annual report and accounts 2014 scapa group plc parent company financial statements 
 
119 
scapa group plc 
annual report and accounts 2014 
the separate financial statements of scapa group plc are presented on pages 120 to 130 as required by the companies act 2006 ‘the act’  
the group has elected not to adopt international financial reporting standards in the individual company accounts for the parent company and 
subsidiary undertakings and accordingly these financial statements have been prepared under uk accounting standards and in accordance with  
the act they are therefore presented separately to the group consolidated financial statements which have been prepared under international 
financial reporting standards
scapa group plc parent company financial statements
strategic report 
governance
financial statements
company information
119
scapa group plc 
annual report and accounts 2014 company balance sheet 
as at 31 march 2014 
120 
scapa group plc   
annual report and accounts 2014 
the notes on pages 121 to 130 form part of these accounts  
the financial statements of scapa group plc registered number 826179 were approved by the board of directors and authorised for issue  
on 28 may 2014 they were signed on its behalf by  
 
 
 
h r chae 
group chief executive   
p edwards 
group finance director  
 
 note  
31 march  
2014 
 £m  
31 march 
2013
£m 
fixed assets     
tangible fixed assets 4 07 08 
investments in subsidiary undertakings  5 1515 1513 
  1522 1521 
current assets     
debtors amounts due within one year  6 53 56 
cash and cash equivalents  06 17 
debtors amounts due after more than one year  6 916 580 
deferred tax asset  7 – 47 
  975 700 
creditors – amounts falling due within one year     
creditors  9 53 40
  53 40
net current assets   922 660 
total assets less current liabilities   2444 2181 
creditors – amounts falling due after more than one year     
creditors  9 986 963
  986 963
provisions for liabilities and charges  10 07 07
net assets excluding pension liability   1451 1211 
net pension liability  13 – – 
net assets   1451 1211 
shareholders’ funds     
calledup share capital  11 73 73 
share premium 12 02 02 
other reserves  12 101 101 
profit and loss account  12 1275 1035 
shareholders’ funds – equity   1451 1211 
company balance sheet
as at 31 march 2014
 
120
scapa group plc  
annual report and accounts 2014 statement of accounting policies 
121 
scapa group plc 
annual report and accounts 2014 
basis of accounting  
these financial statements have been prepared on a going concern basis under the historical cost convention as modified by revaluation of certain 
financial instruments in accordance with the companies act 2006 and applicable uk accounting standards  
a summary of the company’s principal accounting policies is set out below these have been applied consistently throughout the year and prior year  
going concern 
the directors have at the time of approving the financial statements a reasonable expectation that the company has adequate resources to continue  
in operational existence for the foreseeable future thus they continue to adopt the going concern basis of accounting in preparing the financial 
statements further detail is contained in the directors’ report on page 65 
tangible fixed assets  
tangible fixed assets are stated at cost less cumulative depreciation and impairment depreciation is provided on the basis of writing off the cost of the 
relevant assets over their expected useful lives the company applies the straightline method the effect is to reduce the cost of plant machinery and 
fixtures to estimated residual value over a period of 5–20 years  
taxation  
current tax is provided at amounts expected to be paid or recovered using the tax rates and laws that have been substantively enacted by the balance 
sheet date 
deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions  
or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date 
timing differences are differences between the company’s taxable profits and losses and its results as stated in the financial statements that arise  
from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements  
a net deferred tax asset is regarded as recoverable and therefore recognised only to the extent that on the basis of all available evidence it can  
be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences  
can be deducted 
deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse 
based on tax rates and laws that have been substantively enacted by the balance sheet date deferred tax is measured on a nondiscounted basis 
dividends 
dividends proposed by the board are recognised in the financial statements when they have been approved by shareholders at the agm interim 
dividends are recognised when they are paid 
provisions  
provisions are made in accordance with frs 12 where an obligation exists for a future liability in respect of a past event and where the amount  
of obligation can be reliably estimated provision is made for vacant and sublet leasehold properties to the extent that future rental payments are 
expected to exceed future rental income and for all other known liabilities which exist at the balance sheet date based on management’s best 
estimate as to the cost of settling these liabilities  
pension costs  
for defined benefit schemes the amounts charged to operating profit are the current service costs and gains and losses on settlements and 
curtailments they are included as part of staff costs past service costs are recognised immediately in the profit and loss account if the benefits  
have vested if the benefits have not vested immediately the costs are recognised over the period until vesting occurs actuarial gains and losses  
are recognised immediately in the statement of total recognised gains and losses 
for defined benefit schemes the company recognises plan assets where they are separable solely for payment to the fund or to fund employee 
benefits not available to the company’s creditors in bankruptcy and where the assets cannot be returned to the company unless all employee benefit 
obligations are met 
defined benefit schemes are funded with the assets of the scheme held separately from those of the group in separate trusteeadministered funds 
pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted  
at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent currency and term to the scheme liabilities the actuarial 
valuations are obtained annually and are updated at each balance sheet date the resulting defined benefit asset or liability net of the related deferred 
tax is presented separately after other net assets on the face of the balance sheet 
for defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other postretirement benefits  
is the contributions payable in the year differences between contributions payable in the year and contributions actually paid are shown as either 
accruals or prepayments in the balance sheet 
fixed asset investments  
fixed asset investments are stated at cost less provision for any impairment in value where circumstances indicate that there may have been 
impairment in the carrying value of a tangible or intangible fixed asset an impairment review is carried out using cash flows from approved forecasts 
and projections discounted at the group’s weighted average cost of capital  
statement of accounting policies
strategic report 
governance
financial statements
company information
121
scapa group plc 
annual report and accounts 2014 statement of accounting policies continued 
122 
scapa group plc   
annual report and accounts 2014 
sharebased payments  
the fair value of employee share option plans is calculated using the appropriate valuation models in accordance with frs 20 sharebased payments 
the resulting cost is charged to the profit and loss account over the vesting period of the options the value of the charge is adjusted to reflect 
expected and actual levels of options vesting where share options are granted to employees of subsidiary companies the cost is debited to the 
carrying value of the subsidiary investments  
foreign currencies  
transactions in foreign currencies are recorded at the rate ruling at the date of the transaction monetary assets and liabilities denominated in foreign 
currencies are translated into sterling at the rate of exchange at the balance sheet date exchange differences on borrowings including differences 
arising due to currency swaps taken out to hedge overseas equity investments and on longterm loans which are considered equivalent to equity are 
taken to the translation reserve all other differences are taken to the profit and loss account  
cash flow statement  
the company is a wholly owned subsidiary of scapa group plc and is included in the consolidated financial statements of scapa group plc which are 
publicly available consequently the company has taken advantage of the exemption from preparing a cash flow statement under the terms of frs 1 
cash flow statements revised 1996  
consolidation 
consolidated accounts for the company are prepared under international accounting standards and as a result these financial statements present 
information about the company only  
related parties  
the directors’ remuneration report can be found in the annual report on pages 52 to 64 the pension scheme is a related party to the company 
there were no contributions outstanding at the year end there are no other related party transactions the company is exempt under the terms of 
frs 8 from disclosing related party transactions with entities that are wholly owned subsidiaries  
 
statement of accounting policies continued
122
scapa group plc  
annual report and accounts 2014 notes on the accounts  
123 
scapa group plc 
annual report and accounts 2014 
1 profit and loss account  
the company’s profit for the year is £177m 2013 loss £132m as permitted by section 408 of the companies act 2006 a separate profit and loss 
account has not been presented profitloss on ordinary activities before taxation is stated after chargingcrediting 
2 fees payable to the company’s auditor  
for the year ended 31 march 2014 
total audit fees were £80000 2013 £75000 total nonaudit fees were £275000 2013 £138000  
3 employee benefit expense 
 
 
 
2014
£m 
2013
£m 
depreciation of tangible fixed assets owned  03 02
foreign exchange losses 02 – 
directors’ and employee costs 63 43
 
2014
£’000 
2013
£’000 
auditor’s remuneration    
− audit of the company 800 750 
− taxation advisory services 490 900 
− internal audit services – 90 
− corporate finance services 2260 – 
− other nonaudit services – 390 
 3550 2130 
 
2014
£m 
2013
£m 
wages and salaries 47 36
social security costs  07 04
share options granted to directors and employees  06 –
pension costs – defined contribution plans 03 02
 63 42
 2014 2013
average employee numbers 42 37
notes on the accounts
strategic report 
governance
financial statements
company information
123
scapa group plc 
annual report and accounts 2014  notes on the accounts continued 
124 
scapa group plc   
annual report and accounts 2014 
4 tangible fixed assets 
5 investments  
no further investment impairment was required at 31 march 2014 
the recoverable amount has been determined on a value in use basis on each cashgenerating unit using the management approved 12month 
forecasts for each cashgenerating unit the base 12month projection is inflated by 30 up to year 5 which management believes does not exceed 
the longterm average growth rate for the industry and then kept constant for years 6 to 20 for one cashgenerating unit growth rates of 15 10 
10 and 10 have been used to reflect the specific circumstances of that unit these cash flows are discounted at a pretax discount rate of 97 
and adjusted for specific risk factors that take into account the sensitivities of the projection 
the company’s principal subsidiaries are shown in note 15  
 
plant equipment fixtures
and computer systems 
£m 
cost  
at 1 april 2013 122
additions 02
at 31 march 2014 124 
depreciation  
at 1 april 2013 114
depreciation  03
at 31 march 2014 117
net book value at 31 march 2014 07 
net book value at 31 march 2013 08 
 
shares in group 
undertakings 
£m 
cost  
at 1 april 2013 1754 
capital contribution 02 
 1756 
provision for impairment  
at 1 april 2013  241
impairment loss for the year – 
at 31 march 2014 241
net book value at 31 march 2014  1515 
net book value at 31 march 2013  1513 
notes on the accounts continued
124
scapa group plc  
annual report and accounts 2014  
125 
scapa group plc 
annual report and accounts 2014 
6 debtors  
7 deferred tax 
during the current year the basis of recognising the deferred tax asset in the uk was reviewed due to changes in the structure of intercompany 
loans and the group’s focus to diversify its markets it was deemed appropriate to write down the carrying value of the uk deferred tax asset to £nil 
8 bank loans and overdrafts  
in january 2014 the company together with other members of the group entered into a new committed multicurrency facility with a club of three  
uk banks the principal features of the facility are 
• 
the committed value of the facility is £400m 
• 
there is access to an uncommitted accordion of an additional £200m 
• 
it is unsecured 
• 
it is repayable in june 2018 
• 
the interest payable on drawings under the loan is based on interbank interest plus a sliding scale margin determined by the group’s leverage  
the margin is currently 15 
• 
the facility has two covenants – the ratio of ebitda to interest pa id must be above 41 and the ratio of ebitda to net debt mu st be less than 3 
reducing to 25 over time 
 
2014
£m 
2013
£m 
amounts due within one year    
amounts owed by subsidiary undertakings  40 41 
group relief receivable  09 11 
other debtors 01 01 
prepayments and accrued income  03 03 
total amounts due within one year 53 56 
amounts due after more than one year   
amounts owed by subsidiary undertakings 916 580 
total amounts due after more than one year 916 580 
 
2014
£m 
2013
£m 
the deferred tax assets at 31 march are as follows    
− accelerated capital allowances  – 18 
− losses and shortterm timing differences  – 29 
 – 47 
the movement in the deferred tax asset in the year is as follows   
− write off of previously recognised deferred tax 42 – 
− charge to the profit and loss account 01 30
− reduction in assets due to rate change charged to the profit and loss account 06 02
− reduction in assets due to rate change charged to the statement of total recognised gains and losses – 02
− pension movement to the statement of total recognised gains and losses – 04
at 31 march 47 38
strategic report 
governance
financial statements
company information
125
scapa group plc 
annual report and accounts 2014  notes on the accounts continued 
126 
scapa group plc   
annual report and accounts 2014 
8 bank loans and overdrafts continued 
the effective interest rate at the balance sheet date was as follows these exclude the swap interest rates  
the company along with other subsidiaries in the group has the following undrawn borrowing facilities being the unused portion of the £400m 
committed facility  
9 creditors 
the terms of loans owed to subsidiary undertakings vary expiry of these ranges from 2015–2020 
10 provisions 
the provision relates to a disposal in 2007 under the sale and purchase agreement the acquirer can require the company to make good any shortfall 
to an agreed value on the sale of certain property a third party valuation in 2009 indicated a shortfall at that time of £07m  
  
31 march 2014   
bank loans 36 
31 march 2013   
bank loans 23 
 
2014 
£m  
2013
£m 
floating rate 315 100 
 315 100 
 
2014  
£m 
2013
£m 
amounts due within one year    
amounts owed to subsidiary undertakings  17 10 
other creditors including taxation and social security 36 30 
total amounts due within one year 53 40 
amounts due after more than one year    
amounts owed to subsidiary undertakings  986 963 
total amounts due after more than one year 986 963 
 
 2014  
£m 
2013
£m 
at 1 april 
 
07 08 
utilised in the year 
 
– 01
at 31 march  
 
07 07 
notes on the accounts continued
126
scapa group plc  
annual report and accounts 2014  
127 
scapa group plc 
annual report and accounts 2014 
11 share capital  
the movement in share capital relates to share options see note 27 of the group accounts  
share options  
potential issues of ordinary shares and share options for the company are disclosed in note 27 of the group accounts 
12 reconciliation of shareholders’ funds  
profit for the year includes dividends paid by group companies of £308m 2013 £nil  
the board considers the other reserves to be nondistributable 
13 pension schemes  
the company operates several defined benefit schemes and a defined contribution scheme for employees in the uk  
uk pension schemes  
a defined contribution scheme  
the company operates a defined contribution scheme in the uk employer’s contributions are charged to the profit and loss account as incurred 
the total pension cost for the company in respect of this scheme for the year ended 31 march 2014 was £03m 2013 £02m  
b defined benefit schemes  
the uk defined benefit schemes are closed to new members and future accrual and are therefore funded by contributions from members as 
defined in the scheme rules and by the employing company at a rate assessed by the scheme actuary as sufficient to meet the balance of costs 
determined following the triennial fund reviews the assets of the schemes are held separately from company assets under trust  
the frs 17 retirement benefits valuations have been updated by the scheme actuaries in order to assess the liabilities of the schemes at 31 march 
2014 scheme assets are stated at their market value at 31 march 2014 
the actuarial assumptions and expected return on asset categories that affect the valuations of the schemes are the same as described under  
note 25 to the group accounts the sensitivity of the liability to these assumptions is proportionally the same as described under note 25 to  
the group accounts 
during the year the company decided to stop providing for administration expenses within the pension liability reserve a release of £22m 2013 £nil 
has been taken through actuarial gains and losses 
 
2014
£m  
2013
£m 
allotted issued and fully paid    
146772675 2013 146385168 shares of 5p each 73 73 
month of exercise  number of shares issued
april 2013 13658 
june 2013 9975 
march 2014 363874 
 
share 
capital
£m 
share
 premium
£m 
other  
reserves 
£m 
profit and loss
account
£m 
total
£m 
balance at 1 april 2013 73 02 101 1035 1211 
actuarial movements relating to pensions scheme – – – 62 62 
profit for the year – – – 177 177 
share options – – – 08 08 
dividends – – – 07 07
balance at 31 march 2014 73 02 101 1275 1451 
strategic report 
governance
financial statements
company information
127
scapa group plc 
annual report and accounts 2014  notes on the accounts continued 
128 
scapa group plc   
annual report and accounts 2014 
13 pension schemes continued 
the uk pension schemes were merged on an unsectionalised basis in january 2014 as part of this merger the orphaned liabilities of the old scheme 
were allocated to the sponsoring companies in the same proportions that would apply under a section 75 debt calculation the allocation has been 
accounted for through benefits as this basis of allocation is different to that used historically this change has resulted in a settlement loss of £66m 
2013 £05m gain in the company 
during the year ended 31 march 2013 an assetbacked funding arrangement was entered into as described under note 25 in the group accounts 
the company committed to make a special contribution of £397m to the uk pension funds who in turn invested this amount in a scottish limited 
partnership slp called scapa scottish limited partnership the special contribution is a plan asset in the pension scheme’s accounts applying  
frs 17 the amount of the plan asset that can be recognised has been restricted to the value of the pension deficit of this special contribution 
£237m has been recognised as a plan asset with £160m going through reserves  
the financial assumptions used to calculate scheme liabilities under frs 17 for the uk defined benefit schemes are as follows  
the market value of assets in the schemes at the balance sheet date and the expected rates of return and the present value of the scheme liabilities 
at each balance sheet date are as follows 
the expected investment returns have been calculated using the weighted average of the expected investment returns for the different asset classes 
the following amounts have been recognised in the profit and loss account and statement of total recognised gains and losses for the year ended 
31 march 2014 in respect of the company’s defined benefit schemes 
2014 2013  2012
discount rate  440 435 475 
price inflation per annum rpi 345 345 30 
price inflation per annum cpi 265 265 22 
increases to pensions in payment  28 to 36 30 to 36 26 to 34 
increases to deferred pensions  265 265 22 
at 31 march 2014 at 31 march 2013 at 31 march 2012
 
expected 
rate of return 
market value
£m 
expected 
rate of return 
market value 
£m 
expected  
rate of return 
market value
£m 
equities  75 337 75 311 785 315 
bonds  37 396 35 310 47 263 
special scheme asset net of restriction – 237  180 – – 
other 66 69 31 01 31 02 
total market value of assets   1039  802  580 
present value of scheme liabilities  1039 802  732
net deficit in the schemes  –  –  152
deferred tax asset  –  –  36 
net pension deficit  –  –  116
 
2014 
£m  
2013
£m 
profit and loss account   
uk pension settlement lossgain 66 05 
other finance costs   
− expected return on pension scheme assets 35 35 
− interest on pension scheme liabilities 35 33
net finance credit – 02 
total expensesincome charged through the profit and loss account 66 07 
notes on the accounts continued
128
scapa group plc  
annual report and accounts 2014  
129 
scapa group plc 
annual report and accounts 2014 
13 pension schemes continued 
five year summary 
14 dividend per share  
a final dividend of 10p per share is proposed for the year ended 31 march 2014 2013 05p  
 
2014
£m 
2013
£m 
analysis of movements in scheme assets    
beginning of the year  802 580 
expected return on scheme assets  35 35 
actuarial lossesgains 01 24 
contributions  04 39 
special contribution – 397 
restriction of pension asset value to pension deficit amount 57 217
benefits paid 140 56
end of year 1039 802 
analysis of movements in scheme liabilities    
beginning of the year  802 732
interest on scheme liabilities  35 33
benefits paid  140 56 
uk pension settlement lossgain 66 05 
actuarial gainslosses 04 98
end of year  1039 802
 
2014
£m 
2013
£m 
2012  
£m 
2011
£m 
2010
£m 
present value of defined benefit obligations 1039 802 732 696 705
fair value of plan assets 1039 802 580 550 539 
deficit in the plan – – 152 146 166
experience adjustments on plan liabilities  04 98 49 01 60
experience adjustments on plan assets 01 24 01 02 72 
strategic report 
governance
financial statements
company information
129
scapa group plc 
annual report and accounts 2014  notes on the accounts continued 
130 
scapa group plc   
annual report and accounts 2014 
15 principal subsidiaries  
as at 31 march 2014 the principal subsidiaries of the company were  
all the shareholdings are ordinary shares 
 denotes the undertakings which are held directly by scapa group plc all the subsidiaries listed are wholly owned and are incorporated in and operate from  
the countries named  
holding and management companies country of incorporation  
scapa group holdings gmbh austria holding company 
porritts  spencer ltd england holding company 
lindsay and williams ltd england holding company 
scapa holdings gmbh germany holding company 
scapa hk holdings ltd hong kong holding company 
scapa north america inc usa holding company 
 
 
technical tapes companies   
scapa brasil ltda brazil  
scapa tapes north america ltd canada  
scapa shanghai international trading company ltd china  
scapa tapes suzhou co ltd china  
scapa uk ltd england  
groupe scapa france sas france  
scapa deutschland gmbh germany  
scapa hong kong ltd hong kong  
scapa tapes india private ltd india  
scapa italia spa italy  
scapa korea co ltd korea  
scapa tapes malaysia sdn bhd malaysia  
scapa schweiz ag switzerland  
scapa tapes north america llc usa  
notes on the accounts continued
130
scapa group plc  
annual report and accounts 2014 company information 
131 
scapa group plc 
annual report and accounts 2014 
key dates 
 
next annual general meeting 22 july 2014 
next interim results 25 november 2014 
next year end to be reported 31 march 2015 
next preliminary announcement 27 may 2015 
next annual report due june 2015 
 
 
 
shareholder information 
 
shareholder enquiries should be directed to the company’s registrars capita asset services at their customer support centre details as follows 
by phone – uk – 0871 664 0300 uk calls cost 10p per minute plus network extras  
from overseas – 44 20 8639 3399  
lines are open 900am to 530pm monday to friday excluding public holidays 
by email – ssdcapitacouk 
by post – capita asset services the registry 34 beckenham road beckenham kent br3 4tu 
 
further information regarding the various services offered by capita asset services including the share portal and share dealing service can be 
obtained from the above or directly from capita’s website
  
wwwcapitaassetservicescom 
 
company information
strategic report 
governance
financial statements
company information
131
scapa group plc 
annual report and accounts 2014  designed by luminouscouk scapa group plc annual report and accounts 2014
scapa asia scapa north america scapa south america
t 852 2439 4330 t 1 860 688 8000 t 55 11 2589 6003
scapa europe
uk switzerland france italy
t 44 0 161 301 7400 t 41 71 844 5656 t 33 0 475 44 80 00 t 39 0161 867 311
scapa 
asia 
china hong kong
china shanghai
china schenzhen
india chennai
korea anyang
korea chungyang
korea seoul
malaysia shah alam
thailand pathumtanee
scapa 
europe 
france valence
italy ghislarengo
switzerland rorschach
united kingdom dunstable
united kingdom manchester
united kingdom luton
scapa 
americas 
brazil são paulo
canada renfrew
usa inglewood
usa knoxville
usa syracuse
usa windsor
contact details 


Summary:
 strategic report
01 chairman’s statement 
02 at a glance 
04 chief executive’s strategic review 
06 the scapa business model and strategy
08 our strategy in action
14 key performance indicators 
18 risk and risk management 
24 business review healthcare
26 business review industrial 
28 business review electronics 
29 finance director’s review 
32 sustainability report 
governance
37 chairman’s introduction to corporate governance 
38 board of directors and company secretary 
40 corporate governance 
46 report of the audit and risk committee 
50 report of the nominations committee 
52 statement from the remuneration committee chairman 
54 directors’ remuneration policy
60 directors’ annual remuneration report
65 directors’ report
financial statements
67 directors’ responsibilities
68 independent auditor’s report 
73 consolidated income statement 
73 consolidated statement of comprehensive income
7 4 consolidated balance sheet 
75 consolidated statement of changes in equity
76 consolidated cash flow statement 
77 group accounting policies 
84 notes on the accounts 
1 18 five year summaries
1 19 parent company financial statements
120 company balance sheet
121 statement of accounting policies
123 notes on the accounts
company information
131 company information
focused on 
innovation
who we are
we are a global manufacturer of bonding materials and 
solutions at the forefront of adhesive technology in the 
healthcare industrial and electronics markets
what we do
through applicationdriven focus we support our 
customers in solving problems to help maximise their 
product performance and process efficiency
how we create value
we aim to develop and grow mutually profitable 
partnerships with our customers by becoming their 
trusted supply chain provider
revenue
£2261m
trading profit
£155m
profit before tax
£112m
underlying earnings per share 
72
p
 operating profit before amortisation of intangible assets exceptional items and pension administration costs
 profit after tax adjusted for exceptional items amortisation of intangible assets pension administration costs noncash interest and the tax thereon
2014
2013
2012
£2261m
£2088m
£1956m
2014
2013
2012
£112m
£96m
£105m
2014
2013
2012
£155m
£137m
£107m
2014
2013
2012
72p
55p
48p as we continue to make important 
investments in building strategic 
partnerships with existing and new 
global customers and improving 
our product pipeline we are well 
positioned to continue to deliver 
further growth in 2014 and beyond 
the future success of scapa healthcare is 
dependent upon the group’s inherent ability to 
continue to offer new and existing technologies 
to our growing customer base the demands 
from our customers to develop next generation 
and innovative products are everincreasing 
ensuring a sustainable business for the future 
as a result of our continuing commitment to 
customer needs and the associated successes 
of our codevelopment and collaboration 
opportunities a solid foundation for business 
sustainability is tenable we expect all our 
customer focused opportunities to maintain 
a strong and continuous momentum for 
enhancing profitable growth in the short 
and long term profitability will continue 
to be achieved by identifying opportunities 
that will deliver maximum value to both 
scapa and the customer
making
healthcare
stronger
special feature strategically grow profitable revenue through a focus on rd