TAPES maker Scapa's shares leapt after the Tameside company said its trading position has improved significantly during the first half of the financial year, despite swinging to a loss.

Scapa, which is based in Ashton under Lyne, posted pre-tax losses of £3.1m for the six months to September 30 compared with earnings of £2.7m in the same period last year.

Revenues fell 5.9 per cent, or £5.4m, to £86.7m.

However, chairman James Wallace said Scapa had made substantial progress compared with the second half of last year, with sales up by 6.6 per cent and a trading loss of £1m against £5.4m. Turnover growth came in Europe and north America.

Mr Wallace said: “We have now returned to underlying trading profit and cash generation. Our healthy balance sheet and cash position mean Scapa is well-placed to benefit as order books recover.”

Shares climbed 6.25 per cent, or 1p, to 17p.

Scapa, which makes adhesive tapes for sectors including automotive, building, medical, printing, sports and entertainment, said it incurred exceptional costs through the closure of its facility in France and shifting production to Italy, while spiked demand from some customers resulted in higher overtime and express freight overheads.

Heejae Chae, former chief executive at cables manufacturer Volex, has taken over from Calvin O'Connor as CEO at Scapa.