API sees FY profits at low end of hopes after weak H1

7th Apr 2014 08:03

Foil and packaging material maker API Group predicted results at the low end of hopes after a better end to the year failed to make up for a tough first half.API, which makes laminated board and paper, decorative foils, security holographics and coding foils, said overall trading in the six months to March 31st was strong.But the group added: "The recovery has not been enough to fully offset the weak first half and full-year results are now anticipated to be at the lower end of expectations."API's holographics business returned to break even in the last quarter of the year after reducing costs to match current sales.Laminates results improved after a full six-month contribution from a major new supply contract and Foils Europe continued to make solid progress after a first-half re-organisation of its UK operations.Volumes at Foils Americas weakened unexpectedly in the final three months, although API said annual results for the year should be close to last year's."With working capital substantially unchanged, further progress has been made on debt reduction and the Group expects to report a positive cash position at the year end, for the first time in 15 years," it added.Shares in API fell 5.5p or 7.4% to 68.5p in early trading in London.PW