BOSSES at one of Blackburn's biggest employers are optimistic about the future despite a worldwide currency crisis which cost them almost a quarter of profits.

Scapa Group, which has headquarters in Preston New Road, has announced a drop in profits of almost £6 million.

The company made £60.8 million between April, 1997, and March, 1998, compared with £65.5 million the year before.

But the figure would have topped £73 million if exchange rates had remained the same.

A major strategic review resulted in job losses and a more streamlined product range, which cost Scapa almost £28 million to implement, but should make the company more profitable next year.

Chief executive David Dunn said: "Adverse currency movements restricted the group from reporting another year of profit growth but nonetheless, with a thorough review of our business completed major progress was made in shaping the group for the future and improving the operating efficiencies of our core business. "While we expect to see the resulting benefits of the strategic review impact positively on profits and margins as the year progresses, concerns remain on the currency factors and the Far East markets."

The industrial material manufacturers, which includes Scapa Scandia in Cartmell Road, Blackburn, Scapa Filtration, Haslingden, and Scapa Forming, Stubbins, derives more than 86 per cent of sales from overseas.

The company acquired Sellotape Industrial for £46 million during the year and reported good returns of more than 10 per cent on sales for the year.

Mr Dunn went on: "Underlying trading is generally sound."

The company proposed a final dividend of 5.59 pence per share, making a total of 7.64 pence, up over six per cent.

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