API has stronger H2 and re-introduces dividend

4th Jun 2014 09:04

Specialist foil and packaging maker API reported stronger second-half trading and re-introduced a dividend despite lower annual profits.API said second-half profits rose by 15% on the previous six months as progress in its European foil business and reduced losses in its holographics division more than made up for a weaker second half in its American foil operation.Operating profit before one-off items in the year to March 31st fell 4.8% to £7.4m following adverse exchange rate movements, higher levels of production scrap in its laminates business and cost increases.Pre-tax profit was unchanged at £5.6m, but a small tax charge led to a marginal fall in diluted earnings per share to 7.1p from 7.2p a year ago. Pre-tax profit before one-off items fell to £6.3m from £6.6m a year ago.The company proposed a final dividend of 1.3p per share, giving a total for the year of 2p.Chief Executive Andrew Turner, pictured, said: "The board expects a continuation of the second-half trading momentum, with progression in results for the first half and for the financial year as a whole."Shares rose 2.5p or 3.6% to 71.5p at 09:22 in London.PW