Pre Close Trading Update and Response to Shareh...
For release 30 March 2012
API Group plc
Pre Close Trading Update and Response to Shareholders' Letters
Pre Close Trading Update
The Board of API Group plc (the "Group" or the "Company") today issues the following update on trading for the financial year ending 31 March 2012 (the "Period"), before entering the close period ahead of the Company's final results announcement expected on or around 30 May 2012.
The Board anticipates that full year trading results for the Period will be in line with management's expectations, with sales 14% ahead of last year at approximately £114m.
The Group's net debt position is predicted to close the year favourably, with net debt below the £8.5m reported at 31 March 2011.
The Laminates, Holographics and Foils Americas business units have all performed well and delivered year-on-year growth in profits. At Foils Europe, weaker volumes offset the impact of margin recovery due to lower raw material costs.
The Group's operations are carrying good momentum into the new financial year in terms of order book and pipeline of new sales opportunities.
In Laminates, the installation of new production capacity to support the previously announced five year supply agreement with a major consumer goods customer is well advanced and the project is on track to commence supplies during the first quarter of the new financial year.
Response to Shareholders' Letters
On the 8th and 9th February 2012, the Board received open letters from its two largest shareholders, Steel Partners Holding L.P. and Wynnefield Capital Inc, suggesting that an auction process be commenced with the aim of securing a general offer for the Company's shares (the "Proposal").
The Board has given careful consideration to the Proposal, taken financial advice and consulted with its major shareholders. Consistent with previous announcements, the Board expects significant incremental volume growth associated with the Laminates investment referred to above. Barring unforeseen developments, the Board has concluded that it would be in the interests of shareholders to explore a sale process during the third quarter of calendar 2012 when the benefits of that project are more visible and will update the market on the formal commencement of any such process.
In the event that the situation changes and any announcement is required, the Company will notify the market without delay.
API Group plc Tel: +44 (0) 1625 650334
Andrew Turner, Group Chief Executive
Chris Smith, Group Finance Director
Numis Securities - Broker Tel: +44 (0) 20 7260 1000
James Serjeant
Cairn Financial - Nominated Adviser Tel: +44 (0) 20 7148 7900
Tony Rawlinson
Avi Robinson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.
Source: API Group PLC via Thomson Reuters ONE
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