API shows positivity despite lower results

STOCKPORT and Salford packaging firm API Group has said it expects to report a positive year end cash position for the first time in 15 years but still warned that its final results will be at the lower end of expectations.

The announcement, ahead of its final results for the year ended March 31, said that although the group experienced a strong overall trading performance in the second half, the recovery has not been enough to fully offset the weak first half.

The group, which specialises in laminated board and paper packaging for consumer goods, such as boxes for bottles of whisky, said its Laminates division results improved after a full six months contribution from a major new supply contract, while Foils Europe continued to make solid progress after the first half re-organisation of its UK operations.

Volumes at Foils Americas, meanwhile, weakened unexpectedly in the final three months, although results for the year as a whole will still be close to the previous year, it said.

Holographics returned to break even in the last quarter after realigning its cost base to current sales levels.

Looking ahead the group said that investment in additional capacity in the foils businesses will be made during the first half of the new financial year.

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