THE Blackburn-based Scapa Group cut its losses in the year to March and today assured shareholders it was well on the road to recovery.

The company, which supplies technical tapes and cable compounds to firms all over the world, reported a pre-tax loss of £8.2million, down from a loss of £21.4million a year earlier on turnover, which rose slightly to £187.9million.

Profit before tax, goodwill and exceptionals was £4.1million, but the cost of factory closures in Europe and funds set aside to fight asbestos claims in America had pushed them into the red.

Chairman Dr Keith Hopkins said a major reorganisation of operations in Europe had resulted in a return to profits in the final quarter.

The company HQ on Preston New Road oversees a global workforce of more than 15,000 people.