Pre Close Trading Update

RNS Number : 1576E

API Group PLC

07 April 2014

 



Press Release

7 April 2014

API Group plc

("API" or the "Group")

Pre Close Trading Update

API Group plc (AIM:API), the leading manufacturer of specialist foils and packaging materials, is today providing an update on trading ahead of its final results for the 12 months ended 31 March 2014, which are scheduled to be announced on Wednesday 4 June 2014.

In line with the Board's guidance when interim results were announced in December 2013, the Group experienced a strong overall trading performance in the second half.  However, 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.

As planned, Holographics returned to break even in the last quarter after realigning its cost base to current sales levels.  Laminates results improved after a full six months contribution from the major new supply contract and Foils Europe continued to make solid progress after the first half re-organisation of its UK operations.  Volumes at Foils Americas weakened unexpectedly in the final three months, although results for the year as a whole will still be close to what the business unit achieved last time.

Capital expenditure has been lower than originally planned, although still well ahead of depreciation.  Investment in additional capacity in the foils businesses is scheduled to come on stream during the first half of the new financial year.

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.

- Ends -

For further information:

API Group plc
Andrew Turner, Group Chief Executive	Tel: [phone]
Chris Smith, Group Finance Director	www.apigroup.com

Numis Securities (Broker)
James Serjeant	Tel: [phone]
	www.numis.com

Cairn Financial Advisers (Nominated Adviser)
Tony Rawlinson / Avi Robinson	Tel: [phone]
	www.cairnfin.com

Media enquiries:

Abchurch
Henry Harrison-Topham / Quincy Allan	Tel: [phone]
[e-mail]	www.abchurch-group.com

 

END

 

 

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