API returns to profit
STOCKPORT-based printing and packaging group API has seen a strong return to profit in its half year results, having unburdened itself of its loss making Chinese joint venture and refocused the business.
Profits bounced back to £2.6m, following an overall loss of £5.6m for same half year period last year, which was largely down to the costs of pulling out of its loss making joint venture in China.
Profits before tax was £2.9m (2010: £1.3m for continuing operations) for the six months to the end of September 2011. Revenues increased 24% to £58.5m.
The company said that both its laminates business at its headquarters in Poynton and the holographics division in Salford were both performing particularly well.
The Foils Europe division, comprising a manufacturing facility at Livingston, Scotland and six foil distribution businesses in France, Italy, Germany, Australia, New Zealand and Hong Kong, was the only disappointment, it said, with operating profits down by £500,000, although still £300,000 ahead of the preceding six months.
The company had expected to pay out up to £700,000 to cover damaged caused to its manufacturing facility in New Jersey by Hurricane Irene but after assessment and dialogue with insurers it now expects to bear no cost.
Andrew Turner,chief executive, said: “I am pleased to report that the group has maintained its momentum of sales growth and profit improvement in spite of the challenging economic climate and volatile raw material prices. Management remains focused on improving the quality and resilience of the businesses and further enhancing our product and service offering to customers.
“We are conscious that the ongoing sovereign debt crisis could affect confidence in our customer base and consumer end markets, although the group’s improved financial condition leaves it better placed to weather any difficulties that may lie ahead.”
