Final Results - Replacement

API Group PLC
23 November 2004



The following replaces the final results released today at 7.00am under RNS
number 5202F.

The amendment is within the Profit & Loss Accounts section - Loss on ordinary
activities before taxation should read (23,845) and not (22,845).  Loss on
ordinary activities after taxation should read (24,404) and not (22,404).

The full amended release appears below.


                                                                23 November 2004


                                 API GROUP PLC

            Preliminary Results for the year ended 30 September 2004


• Group sales down 3.8% to £169.5m reflecting the impact of discontinued
  businesses.

• Good performance from core businesses

  o  Sales and profits improved significantly in Foils and Laminates as good
     progress was made in all markets.

  o  Sales increased by 4.8% to £111.8m and operating profit before goodwill
     and exceptional items after central costs improved to £4.2m (2003: £1.8m).

• Group operating profit before goodwill amortisation and exceptional
  items improved to £1.4m (2003: £0.6m), following strong second half.

• Adjusted loss per share of 5.7p (2003: loss 3.8p), reflecting charge for 
  exceptional items.

• Metallised Paper improved in the second half as actions to stem losses began 
  to take effect, although performance continues to be disappointing.

• Converted Products experienced increased competition in a number of markets 
  but performed in line with expectations.

• Loss-making Learoyd Packaging and Morris Plastics businesses were sold during 
  the year realising proceeds of £2.3m.

• Steps are being taken to withdraw from other non-core businesses and 
  discussions are underway with a number of interested parties.

• Management reorganisation programmes initiated throughout the Group in 2003 
  have resulted in savings in excess of £2.2m in 2004 and targeted savings of
  £3m will be achieved in 2005.

• Net borrowings reduced by £2.2m from the half year to £10.5m, representing 
  gearing of 26.4% (2003: 18.7%).

• Further progress is expected in 2005.


Commenting on the results and future, Chairman David Hudd said:

'Significant progress has been made in restoring the performance of the Foils
and Laminates division, where we achieved a good result. The second half of the
year was clearly better than the first and the Group is also in a stronger
financial position. Actions are in hand to address the current underperformance
of Metallised Paper and Converted Products.

'Although underlying trading conditions remain tough, we are confident of making
further progress in 2005, following the better than expected second half in
2004.'




                       EXTRACTS FROM CHAIRMAN'S STATEMENT
                  RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2004


After a number of years where results have been affected by factors such as the
war in Iraq and SARS, 2004 saw a return to more stable conditions in many of the
Group's key markets and despite strong competition, we were able to make good
progress in many areas. Following the disappointing results of the first half,
tough decisions were taken regarding the future direction and management of the
Group. I am pleased to report that, led by David Walton, the Group has performed
strongly in the second half and we are now confident that we have the strategy
and management team in place to deliver improved returns to our shareholders.

Although Group sales for the year reduced by 3.8% to £169.5m, this was largely
as a result of the impact of discontinued businesses. Sales in our core business
of Foils and Laminates increased by 4.8% to £111.8m following a particularly
good year in Laminates. In contrast, sales declined in Metallised Paper and
Converted Products where market conditions remain tough.

Group operating profit before exceptional items and goodwill amortisation
improved to £1.4m (2003:  £0.6m). The loss before tax increased to £23.8m (2003:
£7.1m), although this was after charging non-cash exceptional items of £21.0m
relating principally to the disposal of Learoyd Packaging and Morris Plastics
and the impairment of tangible fixed assets in the Metallised Paper business.
The Group's net borrowings increased slightly at 30 September 2004 to £10.5m
(2003: £9.8m). Net tangible assets per share were 118p (2003:  156p).

The Group's core Foils and Laminates division performed strongly during the
year. Despite experiencing tough competition, the US and European foils
businesses were both able to significantly improve margins on relatively stable
sales. As in previous years, exchange rate fluctuations impacted the results
reported for the US and Chinese foils business, although the underlying trends
show growth in sales and profits. Sales in Laminates increased significantly and
margins were maintained. In contrast, Metallised Paper experienced tough market
conditions as competition became more intense, and the performance of the
Converted Products division remained lacklustre.

In recent years, the Group has implemented a series of restructuring and
reorganisation initiatives in an attempt to address the underperformance in a
number of its businesses. Although good progress has been made in Foils and
Laminates, the anticipated improvement in the Metallised Paper and Converted
Products divisions has yet to materialise. The Board has decided that the Group
should concentrate its efforts on Foils and Laminates, where there are
interesting development possibilities and where we believe the best
opportunities for further improvements in sales and profitability lie.
Accordingly, a decision has been made to withdraw from the Group's other
activities and actions to implement this strategy are underway.

At the Annual General Meeting held in January 2004, the Board proposed and
shareholders approved the cancellation of the Company's share premium account of
£50.6m. The cancellation was proposed in order to eliminate the accumulated
deficit on the profit and loss account of the Company.  The proposal was
approved by the High Court and became effective in March 2004.

Significant progress has been made in restoring the performance of the Foils and
Laminates division and actions are in hand to address the current
underperformance of Metallised Paper and Converted Products. The Board of
Directors would like to thank our employees who through their hard work,
commitment and professionalism have made a major contribution to  the
improvement achieved during the year.   Although underlying trading conditions
remain tough, we are confident of making further progress in 2005 following a
better than expected second half in 2004.

In recent years, our principal focus has been on restoring the Group's
profitability through improving productivity, manufacturing efficiency and
service levels in all of our businesses, several of which were loss making.
Major restructuring, including plant closures and workforce reductions, resulted
in an extended period of instability and constant change. The Group was also
affected during this period by the impact of the war in Iraq and SARS on its key
markets. Notwithstanding the above, steady progress has been made in improving
profitability and reducing debt.

With the major restructuring of previous years behind us, it is now clear that
while the Foils and Laminates business has improved significantly, the
performance of the Metallised Paper business has continued to be disappointing
and the margins achieved in Converted Products remain unacceptably low.
Accordingly, the Group has decided to concentrate its efforts on Foils and
Laminates. The loss-making Learoyd Packaging and Morris Plastics businesses were
sold during the year realising proceeds of £2.3m and steps are being taken to
withdraw from the Group's other non-core businesses.

We believe that Foils and Laminates offer the best route to improved
profitability and the creation of value for the Group's shareholders. We already
have a strong worldwide market presence, well-respected products and a loyal
customer base, and we believe that each of these can be further developed. In
addition, there are many interesting opportunities to expand the business into
new markets and new product areas.

During 2004, we have been working hard to reposition and reorganise the Group to
better leverage our existing capabilities in Foils and Laminates and to position
the businesses for future growth. In particular:
     
•    A newly created central team has been established to provide support and 
     leadership to our worldwide sales and manufacturing operations and we are
     already beginning to see significant benefits from this initiative.

•    Following on from the success of programmes such as War-On-Waste and ABC, 
     we have established a process improvement capability and are instilling a
     continuous improvement culture throughout our businesses.

•    Much greater emphasis is being placed upon product technology, innovation 
     and service levels, which we believe are positive differentiating factors 
     for us and provide a route to sales and profit growth.

•    We are about to commence a phased capital investment programme intended to 
     upgrade the manufacturing capabilities of our Foils and Laminates business.
     
•    During 2004 and 2005, we will continue with the significant investment in 
     new ERP systems provided by Oracle, which are intended to improve the
     effectiveness and automation of our business processes.

The above are all expected to contribute to further improvement in the Foils and
Laminates division during 2005.


OPERATING RESULTS

Sales

Sales for the year ended 30 September 2004 reduced by 3.8% to £169.5m, due
principally to the disposal of two businesses in the non-core Converted Products
division during the year. Sales in continuing operations were stable at £167.4m
(2003: £167.2m). However, underlying sales in Foils and Laminates increased by
4.8% to £111.8m, while sales in Metallised Paper declined by 13.1% to £23.0m and
in Converted Products by 4.6% to £32.6m.

Sales in the UK from continuing operations rose by 3.5% to £65.2m as increased
volumes in Laminates offset reductions in Converted Products. Sales in
Continental Europe fell by 6.6% to £57.1m. This was due to lower sales from
Laminates as demand increased in other markets and to the deterioration in sales
experienced in both Metallised Paper and to a lesser extent Converted Products.

Sales in the US rose by 5.8% to £25.7m. Sales of tobacco related products from
Laminates offset a reduction in reported sales from the US Foils business of
£2.6m, which was entirely attributable to the adverse movement of the US dollar
exchange rate used on translation. Sales to the Rest of the World improved by
2.0% to £19.4m despite a £0.7m reduction in reported sales of the Chinese Foils
business which again was entirely due to the adverse movement of the Chinese
exchange rate.

Operating Profit

Operating profit before exceptional items and goodwill amortisation improved to
£1.4m (2003: £0.6m). The strong performance in Laminates and significantly
improved profitability in the US and European Foils businesses more than offset
the deterioration experienced in Metallised Paper and Converted Products as a
result of lower volumes.


REVIEW OF OPERATIONS

Foils and Laminates

Foils and Laminates sales increased by 4.8% to £111.8m (2003: £106.7m) and
operating profits before exceptional items and goodwill amortisation rose to
£6.4m (2003: £4.2m).

The division manufactures a range of foil and laminate products used in the
construction and decoration of packaging for international manufacturers of
luxury goods, beverages, consumer goods and tobacco products. Approximately 60%
of sales are generated from foil products, with the remainder attributable to
laminated boards and papers. The foils business is a worldwide operation with
manufacturing sites in North America, Europe and China, while Laminates is
predominantly focused on the UK and European markets.

The US Foils business experienced a difficult year in 2003 as sales volumes
declined by 15% and the business remained heavily loss-making. A new management
team was appointed in January 2004 and since then a series of cost reduction and
performance improvement programmes have been initiated and a revised sales
approach developed. These initiatives have produced significant benefits during
the current year and are expected to yield further benefits in 2005. New sales
have been successfully generated to offset the volume lost in the metallic ink
sector, relationships with major customers have improved and the cost base of
the business has been reduced. Although net sales remained unchanged at $39m,
the US Foils business achieved a small operating profit for the year.

Operating profits in the European Foils and Security Foils businesses improved
significantly on sales that were virtually unchanged at £32.9m. Despite intense
competition in the core graphics and pigment foils business which impacted both
volumes and margins, we continue to make good progress with the rationalisation
and refocusing of the core product range, leading to improved manufacturing
efficiencies in the Livingston plant in Scotland. The Security Foils business in
Salford has been reorganised under new management and refocused on sectors of
the market where its unique capabilities are most attractive. This resulted in
improved sales and dramatically improved profitability.

In China, we continue with our efforts to reposition the business as both a
provider of differentiated, high quality foils in the domestic market and a
source of lower cost foils for export to western markets. Sales increased by 4%
in local currency terms, although the adverse movement in the Chinese exchange
rate used for translation resulted in a deterioration of 6.5% in reported sales
to £10.0m. Margins were maintained as the shift to more profitable products such
as holographic foils offset price and margin erosion in the graphics markets.

In recent years, there has been widespread debate regarding the merits of
sourcing low quality, commodity foils from the Far East, or even the transfer of
packaging manufacture to converters based there. Whilst this is undoubtedly an
emerging trend, demand for the higher quality, more specialised foils produced
by API remains robust and we continue to believe that a strong, flexible product
range, technical innovation and enhanced levels of service offer a clear route
to success in these markets. In addition, our Chinese business is working hard
to develop a broad range of high quality, Chinese produced foils that can be
integrated into our core product range and sold at very competitive prices in
western markets.

The Laminates business performed strongly with sales increasing by 21% to
£47.1m, following growth of 16% in the previous year. Operating margins also
benefited as economies of scale and improved operating efficiencies were
realised. Strong growth in the established markets of tobacco and beverages
supplemented already successful efforts to expand into new areas such as food,
consumer goods and healthcare products. In an interesting new development,
Laminates also exported a significant volume of material outside of its
traditional European markets and into the US and Asia-Pacific to assist
customers seeking to preserve brand identity during product launches in new
markets.

The major challenge faced by the Laminates business is managing growth and most
effectively utilising the current available capacity. We are exploring a number
of options for further expanding our UK and European business, including
investment in additional laminating equipment, and following the success
achieved during 2004, believe that there are opportunities to expand sales
further into new geographical markets.


METALLISED PAPER

The operating loss before exceptional items and goodwill amortisation increased
to £2.7m (2003: £0.4m) on sales down 13% to £23.0m (2003: £26.4m).

The result for Metallised Paper was particularly disappointing in view of the
progress that had been made in the business during the previous two years.
Production related issues, including poor equipment reliability and industrial
action, together with weak demand for label paper during the summer months and
adverse movements in the US dollar exchange rate all contributed to a
significant deterioration in performance compared with the previous year.

The management team was strengthened following concerns identified at the start
of the year. Aggressive remedial action has been taken and performance improved
in the second half. However, this has not been sufficient to offset the impact
of poor delivery performance on customer loyalty. This, together with further
pressure on prices in both the label and tobacco sectors, accounted for the
significant reduction in sales experienced during the year. Following the
restructuring undertaken in previous years, the business was already operating
with optimal headcount and overheads and it was not possible to reduce costs
further in the short term to fully offset the loss of sales.

The Board remains concerned regarding the prospects of returning this business
to acceptable levels of profitability within API in the short-term and will
therefore continue to evaluate the strategic options that are available.


CONVERTED PRODUCTS

The operating profit before exceptional items and goodwill amortisation reduced
to £0.2m (2003: £0.9m) on sales down 4.6% to £32.6m (2003: £34.2m).

During the year, the loss-making Learoyd Packaging and Morris Plastics
businesses were both sold, realising proceeds of £2.3m. In the remaining
businesses good progress was made with strategic and operational initiatives.
However, overall performance remained disappointing and as with Metallised Paper
the Board is actively pursuing strategic options.

Tenza reported lower operating profits on sales down 10% to £17.6m as a result
of increased price competition in European markets for packing list envelopes,
reduced demand for book covering films in the Middle East and the impact of the
sale of a small Scandinavian distribution operation. Although sales of adhesive
laminates improved by over 7%, margins were eroded due to the impact of
increases in raw materials prices and overcapacity in the market.

Profitability improved slightly in Coated Products on stable sales of £10.4m.
Improvements in operational efficiencies and success in developing new markets
such as medical and personal hygiene products offset the impact of price
competition and margin erosion in traditional markets, which have become
increasingly commoditised. Commercial production of siliconised film has now
commenced at the recently established joint venture in China and performance is
in line with our expectations.

Filmcast reported a slightly increased loss on sales up 15% to £4.6m following
production related issues. Several new higher margin co-extruded products have
been successfully brought to market during the year and have been well received.
A phased replacement of sales of commoditised mono-extruded products with higher
margin sales of co-extruded products is underway and performance has begun to
improve in recent months.


HEALTH, SAFETY AND ENVIRONMENT

The manufacturing processes of many of the Group's businesses involve the use of
heavy machinery, explosive or flammable chemicals and extreme operating
conditions. The risk of fire, explosion or contamination is high and stringent
health, safety and environmental protection measures are necessary. Each year
the Group experiences a number of minor incidents that may result in injury,
damage to equipment or loss of production. In each case, a thorough and detailed
investigation is undertaken and where appropriate, improved procedures are
developed and implemented across the Group. I am pleased to report that there
were no major incidents during the year just ended.


PROSPECTS

Trading conditions are expected to remain challenging in most of the Group's
principal markets. The impact of high oil prices on raw material costs and our
ability to pass on these increases to customers are also cause for concern.
However, the benefits of the restructuring and the other initiatives outlined
above are being progressively realised and the performance of the Foils and
Laminates businesses continues to improve. The performance of the Metallised
Paper and Converted Products divisions continue to be of concern and we are
taking appropriate action to address these issues. The Board is confident that
further improvement in the Group's performance will occur in 2005.




GROUP PROFIT & LOSS ACCOUNT
for the year ended 30 September 2004

                                                                   2004          2003
                                                                  £'000         £'000
Group Turnover
Continuing operations                                           167,389       167,286
Discontinued operations                                           2,156         8,906
                                                                169,545       176,192

Operating profit/(loss)
Before goodwill amortisation and exceptional items
Continuing operations                                             1,691         2,250
Discontinued operations                                           (273)       (1,650)
                                                                  1,418           600

Goodwill amortisation continuing operations                       (450)         (447)

After goodwill amortisation but before exceptional items
Continuing operations                                             1,241         1,803
Discontinued operations                                           (273)       (1,650)
                                                                    968           153
Exceptional items
Continuing operations                                           (8,475)       (1,158)
Discontinued operations                                            (86)       (4,435)
                                                                (8,561)       (5,593)
Group operating loss
Continuing operations                                           (7,234)           645
Discontinued operations                                           (359)       (6,085)
                                                                (7,593)       (5,440)

Share of operating loss in joint venture                           (91)             -
Total operating loss: group and share of joint venture          (7,684)       (5,440)

Loss on disposal of discontinued operations
Before goodwill                                                   (100)             -
Goodwill previously charged to reserves                        (14,365)             -
                                                               (14,465)             -

Loss on ordinary activities before interest and taxation
Continuing operations                                           (7,325)           645
Discontinued operations                                        (14,824)       (6,085)
                                                               (22,149)       (5,440)

Net interest                                                    (1,696)       (1,621)
Loss on ordinary activities before taxation                    (23,845)       (7,061)

Taxation                                                          (559)           753
Loss on ordinary activities after taxation                     (24,404)       (6,308)

Equity minority interests                                         (982)         (995)
Loss attributable to shareholders                              (25,386)       (7,303)

Dividends                                                             -             -
Balance transferred from reserves                              (25,386)       (7,303)

Basic and fully diluted loss per share                           (76.3)        (22.0)
Adjusted loss per share (before goodwill amortisation and         (5.7)         (3.8)
exceptional items)





GROUP BALANCE SHEET
as at 30 September 2004
                                               2004       2004           2003           2003
                                                                     Restated       Restated
                                              £'000      £'000          £'000          £'000
Fixed assets
Intangible assets                                        5,516                         5,966
Tangible assets                                         38,579                        50,545
Investment in joint venture
Share of gross assets                           626                         -
Share of gross liabilities                    (136)        490              -              -
                                                        44,585                        56,511

Current assets
Stocks                                                  16,957                        18,368
Debtors                                                 34,918                        35,019
Short term investments                                       -                         1,440
Cash at bank and in hand                                11,719                         9,396
                                                        63,594                        64,223
Creditors - amounts falling due within one year       (41,251)                      (39,759)
Net current assets                                      22,343                        24,464

Total assets less current liabilities                   66,928                        80,975
                                                      (19,712)                      (19,926)

Provisions for liabilities and charges                 (1,499)                       (1,749)
Accruals and deferred income                             (323)                         (511)

Net assets                                              45,394                        58,789

Share capital and reserves
Called up share capital                                  8,463                         8,463
Share premium account                                        -                        50,563
Revaluation reserve                                      2,886                         2,892
Capital redemption reserve                                 549                           549
Merger reserve                                          14,365                             -
ESOP reserve                                           (2,513)                       (2,513)
Profit and loss account                                 16,135                       (7,545)
Shareholders' funds                                     39,885                        52,409
Equity minority interests                                5,509                         6,380
                                                        45,394                        58,789





GROUP CASH FLOW STATEMENT
for the year ended 30 September 2004
                                                           2004          2003
                                                          £'000         £'000
Reconciliation of operating loss to net cash inflow
from operating activities
Group operating loss                                    (7,593)       (5,440)
Amortisation and depreciation less government grants      6,852         8,586
Impairment charge against tangible fixed assets           6,665         5,215
(Profit)/loss on disposal of fixed assets, other than       (1)            26
land & buildings
(Increase)/decrease in stocks                             (287)           620
(Increase)/decrease in debtors                          (2,000)         2,447
Increase in creditors                                       490         2,082
Decrease in provisions                                     (90)         (357)
Net cash inflow from operating activities                 4,036        13,179


Cash outflow of £1,896,000 (2003: £404,000) resulted from operating exceptional 
items incurred during the year



                                                          2004          2004          2003       2003
                                                         £'000         £'000         £'000      £'000
Cash flow statement
Net cash inflow from operating activities                              4,036                   13,179
Returns on investment and servicing of finance

Interest paid                                          (1,410)                     (1,892)
Interest received                                           73                          47
Issue costs on new long term borrowing                       -                       (158)
Dividends paid to minority interests                     (790)       (2,127)         (475)    (2,478)
Taxation

UK                                                          18                       (865)
Overseas                                                 (680)         (662)          (32)      (897)
Capital expenditure and financial investment

Payments to acquire tangible fixed assets              (3,393)                     (4,678)
Receipts from sales of tangible fixed assets               216                          91
Payments to acquire investments                          (490)                           -
Receipt of government grants                                 -       (3,667)            82    (4,505)
Acquisitions and disposals

Sale of subsidiary undertakings                          2,119                           -
Net overdrafts disposed of with subsidiary                 219                           -
undertakings
Acquisition                                               (43)         2,295          (51)       (51)

Net cash flow before management of liquid
resources and financing                                                (125)                    5,248
Management of liquid resources                                         1,335                     (23)

Financing
Increase/(decrease) in short term borrowing                            1,775                 (18,590)
(Decrease)/increase in long term borrowing                             (200)                   20,000

Increase in cash in the period                                         2,785                    6,635

Exchange movement                                                      (462)                    (243)
Balance sheet movement in net cash                                     2,323                    6,392






GROUP CASH FLOW STATEMENT
for the year ended 30 September 2004


Notes to the cash flow statement                         2003   Cash flow   Exchange       Other        2004
                                                                                        non-cash
                                                                                       movements
                                                        £'000       £'000      £'000       £'000       £'000

A. Analysis of net debt

Cash at bank and in hand                                9,396       2,785      (462)           -      11,719
Short term investment in Chinese Government             1,440     (1,335)      (105)           -           -
   bonds
Short term borrowing                                    (815)     (1,775)         15           -     (2,575)
Long term borrowing                                  (19,842)         200          -        (37)    (19,679)
Net debt                                              (9,821)       (125)      (552)        (37)    (10,535)




                                                           2004          2003
                                                          £'000         £'000
B. Reconciliation of net cash flow to movement in
net debt
Increase in cash                                          2,785         6,635
(Decrease)/increase in short term investments           (1,335)            23
(Increase)/decrease in short term borrowing             (1,775)        18,590
Issue costs on new long term borrowing                        -           158
Decrease/(increase) in long term borrowing                  200      (20,000)
Change in net debt resulting from cash flows              (125)         5,406
Exchange movement                                         (552)         (450)
Other                                                      (37)             -
Movement in net debt                                      (714)         4,956
Net debt at start of period                             (9,821)      (14,777)
Net debt at end of period                              (10,535)       (9,821)





OTHER STATEMENTS
for the year ended 30 September 2004
                                                           2004          2003
                                                          £'000         £'000
Statement of total recognised gains and losses
Loss for the financial year excluding share of         (25,295)       (7,303)
losses of joint venture
Share of joint venture's losses for the year               (91)             -
Loss attributable to shareholders                      (25,386)       (7,303)
Currency translation differences on foreign currency    (1,503)         (910)
net investments
Total recognised gains and losses relating to the      (26,889)       (8,213)
year
Prior year adjustment                                     (435)
Total gains and losses recognised since previous       (27,324)
annual report and accounts



                                                           2004          2003
                                                                     Restated
                                                          £'000         £'000
Reconciliation of movements in shareholders' funds
Loss attributable to shareholders                      (25,386)       (7,303)
Goodwill reinstated on sale of a subsidiary              14,365             -
Currency translation differences on foreign currency    (1,503)         (910)
net investments
Net deduction from shareholders' funds                 (12,524)       (8,213)

Opening shareholders' funds (as previously stated)       52,844        61,057
Reclassification of ESOP shares                           (435)         (435)
Opening shareholders' funds (as restated)                52,409        60,622
Closing shareholders' funds                              39,885        52,409






NOTES

2004                                    Continuing businesses           Dis-continued         Group
                                          Core     Non-core      Total
                                         £'000        £'000      £'000         £'000         £'000

Group turnover                         111,831       55,558    167,389         2,156       169,545

Operating profit/(loss)
Before goodwill and exceptional          4,196      (2,505)      1,691         (273)         1,418
items
Goodwill amortisation                    (406)         (44)      (450)             -         (450)
After goodwill but before                3,790      (2,549)      1,241         (273)           968
exceptional
    items
Exceptional items                      (1,657)      (6,818)    (8,475)          (86)       (8,561)
                                         2,133      (9,367)    (7,234)         (359)       (7,593)
Share of loss in joint venture               -         (91)       (91)             -          (91)
Total operating loss                     2,133      (9,458)    (7,325)         (359)       (7,684)
Loss on disposal of discontinued             -            -          -      (14,465)      (14,465)
operations
Loss on ordinary activities before       2,133      (9,458)    (7,325)      (14,824)      (22,149)
interest
    and taxation



2003                                    Continuing businesses           Dis-continued         Group
                                          Core     Non-core      Total
                                         £'000        £'000      £'000         £'000         £'000

Group turnover                         106,679       60,607    167,286         8,906       176,192

Operating profit/(loss)
Before goodwill and exceptional          1,780          470      2,250       (1,650)           600
items
Goodwill amortisation                    (406)         (41)      (447)             -         (447)
After goodwill but before                1,374          429      1,803       (1,650)           153
exceptional items
Exceptional items                        (251)        (907)    (1,158)       (4.435)       (5,593)
                                         1,123        (478)        645       (6,085)       (5,440)
Share of loss in joint venture               -            -          -             -             -
Total operating loss                     1,123        (478)        645       (6,085)       (5,440)
Loss on disposal of discontinued             -            -          -             -             -
operations
Loss on ordinary activities before       1,123        (478)        645       (6,085)       (5,440)
interest
   and taxation




SEGMENTAL ANALYSIS

Analysis of turnover by                   2004        2004       2003          2003
destination                              £'000       £'000      £'000         £'000
United Kingdom
Continuing operations                   65,184                 62,960
Discontinued operations                  2,156      67,340      7,899        70,859
Continental Europe
Continuing operations                   57,122                 61,133
Discontinued operations                      -      57,122        502        61,635
Americas
Continuing operations                   25,671                 24,270
Discontinued operations                      -      25,671        394        24,664
Rest of World
Continuing operations                   19,412                 18,923
Discontinued operations                      -      19,412        111        19,034

                                                   169,545                  176,192


Analysis by origin                          Turnover           Profit/(loss) before      Net operating assets
                                                                     interest
                                                                      and tax
                                           2004        2003       2004          2003          2004        2003
                                          £'000       £'000      £'000         £'000         £'000       £'000

United Kingdom - continuing             132,463     126,746      (165)           755        34,282      44,295
United Kingdom - discontinued             2,156       8,906      (273)       (1,650)             -       2,123
                                        134,619     135,652      (438)         (895)        34,282      46,418
Continental Europe - continuing           1,008       3,765        166           233             -         933
Americas - continuing                    22,206      24,675      (558)       (1,258)        11,512      12,338
Rest of World - continuing               11,712      12,100      2,248         2,520         6,383       4,872
                                        169,545     176,192      1,418           600        52,177      64,561
Share of joint venture                        -           -       (91)             -             -           -
Exceptional items and goodwill
    amortisation                              -           -   (23,476)       (6,040)             -           -
Non operating assets                          -           -          -             -       (6,783)     (5,772)
                                        169,545     176,192   (22,149)       (5,440)        45,394      58,789




Analysis by activity                        Turnover          Profit/(loss) before      Net operating assets
                                                                    interest
                                                                     and tax
                                           2004        2003       2004          2003          2004        2003
                                          £'000       £'000      £'000         £'000         £'000       £'000
Continuing - Foils & Laminates          111,831     106,679      6,416         4,155        36,927      41,671
Continuing - Metallised Paper            22,959      26,421    (2,679)         (387)         2,476       6,309
Continuing - Converted Products          32,599      34,186        174           857        12,774      14,458
Continuing - Central costs                    -           -    (2,220)       (2,375)             -           -
                                        167,389     167,286      1,691         2,250        52,177      62,438
Discontinued - Converted Products         2,156       8,906      (273)       (1,650)             -       2,123
                                        169,545     176,192      1,418           600        52,177      64,561
Share of joint venture                        -           -       (91)             -             -           -
Exceptional items and goodwill
    amortisation                              -           -   (23,476)       (6,040)             -           -
Non operating assets                          -           -          -             -       (6,783)     (5,772)
                                        169,545     176,192   (22,149)       (5,440)        45,394      58,789





OPERATING LOSS                                          2004       2003
                                                       £'000      £'000
Exceptional items charged against operating loss
comprise

Restructuring of operating businesses                  1,896        378
Impairment of tangible assets                          6,665      5,215
                                                       8,561      5,593




EARNINGS PER SHARE                                        2004                       2003
                                                     pence        £'000        pence         £'000
Earnings per share are based on
Loss attributable to shareholders                   (76.3)     (25,386)       (22.0)       (7,303)
Add loss on disposal of discontinued                  43.5       14,465            -             -
operations
Add exceptional items                                 25.7        8,561         16.8         5,593
Add goodwill amortisation                              1.4          450          1.4           447
Adjusted loss attributable to  ordinary              (5.7)      (1,910)        (3.8)       (1,263)
shareholders
Basic weighted average number of ordinary               33,262,578               33,262,578
shares





BASIS OF PREPARATION

The accounts have been prepared on the basis of the accounting policies set out
in the Group's Annual Report and Accounts for the year ended 30 September 2003,
apart from the adoption of UITF 38 (ESOP trusts).  UITF 38 requires own shares
held though an ESOP trust to be deducted in arriving at shareholders' funds and
recommends the creation of a separate negative reserve which we have described
as an 'ESOP reserve'. The Abstract requires the change to be retrospective and
therefore comparatives have been restated.  There is no effect on the profit and
loss account but equity shareholders' funds have been reduced by £0.4m in both
the current and prior periods.


PUBLICATION OF ABRIDGED ACCOUNTS

The preliminary announcement figures for the year ended 30 September 2004 and
the comparative figures for the year ended 30 September 2003 are an abridged
version of the Group's statutory accounts which carry an unqualified audit
report and do not contain a statement under S237 (2) or (3) of the Companies Act
1985.  The Group's audited statutory accounts for the year ended 30 September
2004 will be filed in due course with the Registrar of Companies.  The Group's
audited statutory accounts for the year ended 30 September 2003 have been filed
with the Registrar of Companies.

The Annual Report and Accounts for the year ended 30 September 2004 will be
posted to shareholders by 24 December 2004 prior to the Annual General Meeting
on 26 January 2005.  Copies of the Annual Report and Accounts will be available
to members of the public from 24 December 2004 at the Group's registered office
at Second Avenue, Poynton Industrial Estate, Poynton, Cheshire SK12 1ND.


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