API Group maintains guidance despite weak first half

4th Oct 2013 07:54

API Group said that trading in the first half has been weaker than expected due to very strong comparatives with last year, but it still expects to report progress over the full year.The oil and packaging group listed on AIM said the guidance given at its annual general meeting in July remains unchanged: results are expected to be weighted to the second half as volumes build on the a laminates supply contract and the recovery in holographics gains strength.The company announced back in July 2011 that it had secured a significant new supply agreement with a major global consumer goods company, with shipments beginning earlier this year. It said that it has made good progress in relation to the contract and a "continuation of current off-take levels underpins the outlook for the second half".Meanwhile, API said that major operating improvement projects are nearly finished at Foils Americas and Foils Europe though this came at the expense of some business disruption during the transition phase. "Increased operational effectiveness and lower costs, combined with robust levels of demand are expected to benefit results going forward. "Things are a little less positive in the Holographics division which has seen "little improvement" since the second half of last year, with a recovery in sales to other group companies offset by reduced activity with external customers. BC