Tighter costs help API profits
STOCKPORT packaging firm API Group has reported strong full-year earnings growth on flat sales after pushing up margins.
In the year to March 31 pre-tax profits rose 35% to £6.8m after stripping out costs of £1m associated with a reorganisation of the sales and distribution arm, and a sale process that was axed in February.
Revenues were marginally lower at £112.4m, down from £113.9m.
Earnings growth came from three units – laminates, foils Europe and foils America. API’s holographics arm – which helps companies tackle fraud and counterfeiting by developing holographic logos on packaging – reported a £300,000 loss, compared to a £1.6m profit last time.
The company said this was down to a number of factors, including a large inter-company job coming to an end, and one customer choosing to take the work in house.
In the statement the company also said it was committed to a “progressive dividend policy” and would declare a dividend at the next interim announcement in November.
The company was put under pressure to sell earlier in the year by New York-based investors Steel Partners and Wynnefield Capital which own 32.3% and 29.6% respectively. This process was scrapped after a lack of decent offers.
Chief executive Andrew Turner told TheBusinessDesk: “The sale process was obviously an attempt to get cash back to shareholders and didn’t get the right solution in the end.
“We’re putting a fair amount into capital investment to enhance margins and grow the business but we feel it’s appropriate to introduce an income element for shareholders.”
API employs 220 people in Stockport and Salford and a further 350 at sites in Scotland, the US, Europe and Asia.
