TIDMAPI

RNS Number : 6772Q

API Group PLC

03 September 2014

 
 Press Release   3 September 2014 
 

API Group plc

("API" or the "Group")

Trading Update

API Group plc (AIM: 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.

- Ends -

For further information:

 
 API Group plc 
 Andrew Turner, Group Chief Executive   Tel: +44 (0) 1625 
                                                  650 334 
 Chris Smith, Group Finance Director     www.apigroup.com 
 
 
 Numis Securities (Broker) 
 James Serjeant              Tel: +44 (0) 20 7260 
                                             1000 
                                    www.numis.com 
 
 
 Cairn Financial Advisers (Nominated Adviser) 
 Tony Rawlinson / Avi Robinson                  Tel: +44 (0) 20 7148 
                                                                7900 
                                                    www.cairnfin.com 
 

Media enquiries:

 
 Abchurch 
 Henry Harrison-Topham / Quincy Allan     Tel: +44 (0) 20 7398 
                                                          7710 
 quincy.allan@abchurch-group.com        www.abchurch-group.com 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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