Trading Update

5th October 2012

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 an update on trading ahead of its interim results which are scheduled to be announced on Thursday 29 November 2012.

Consistent with the guidance provided at the time of the AGM in July 2012, trading performance in the first half of the year has been encouraging and the Group currently expects to report interim results in line with management's expectations.  Overall margins have continued to recover from the raw material cost pressures experienced in 2011 and sales are expected to be slightly ahead of last year's strong first half.  

The Laminates business has continued to perform ahead of plan.  Management still expects the new supply contract to start bulk deliveries early in the second half.  Foils Americas and Foils Europe have both maintained their profit improvement momentum due to a combination of improved margins and lower costs.  Results at Holographics will be lower due to the completion of a significant joint project with Laminates and a slow-down in orders from external customers.  A capital investment program is underway to strengthen Holographics' offer to the growing security and authentication market.

In common with many other companies, the Group continues to be cautious on demand levels in European markets, however, specific sales opportunities and improvement initiatives mean that the outlook for the  second half year remains positive.  

- 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

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Source: API Group PLC via Thomson Reuters ONE

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