API Group PLC Announces Trading Update
September 3, 2014 - Stockport, United Kingdom
API Group plc (LSE: API), the leading manufacturer of specialist foils and packaging materials, is today providing the following update on trading:
As indicated in previous statements, the Group's Foils Americas business unit has been impacted by a drop in demand from customers in the metallic pigment sector, affecting results for the second half of last financial year and continuing into the current financial year. The duration and severity of the down-turn has been greater than expected, albeit a recovery is now getting under way. As a consequence, it is now anticipated that the unit will post a small loss for the year.
Elsewhere, Laminates and Foils Europe are trading broadly in line with last year, whilst Holographics has consolidated the breakeven position established in the last year's final quarter and there are good prospects for a return to profitability based on an improving business development pipeline.
Overall, the elimination of last year's losses in Holographics is proving insufficient to compensate for the significant profit shortfall at Foils Americas. As a consequence, Group expectations are being downgraded, with both first half and full year results behind those reported last year.
Beyond the current financial year, Group results should benefit from a recovery in sales revenues at both Foils Americas and Holographics, as well as the realisation of growth and profit improvement opportunities associated with the ongoing capital investment programme.
This information is provided by RNS
The company news service from the London Stock Exchange
For further information:
API Group plc
Group Chief Executive
Group Finance Director
Tel: +44 (0) 1625 650 334
Numis Securities (Broker)
Tel: +44 (0) 20 7260 1000
Cairn Financial Advisers (Nominated Adviser)
Tony Rawlinson / Avi Robinson
Tel: +44 (0) 20 7148 7900
Henry Harrison-Topham / Quincy Allan
Tel: +44 (0) 20 7398 7710