5 August 2010
API Group plc
API Group plc ("API" or "the Group") today provides the following trading
Trading so far this financial year has been in line with expectations, with
revenues more than 15% up on prior year comparatives and slightly ahead of last
year's second half.
Laminates has started to benefit from a strong pipeline of new projects,
including some important new contract wins, and its results are now expected to
be substantially ahead of last year. Â On the other hand, the foils businesses
are experiencing significant upwards movement in commodity-based raw material
costs as a result of global supply constraints. Â Whilst action is underway to
pass these costs on through higher selling prices, any delay or shortfall in
this process will have a negative impact on profitability. Â Overall, the Board
expects any temporary deterioration in foils margins to be offset by the
increased contribution from Laminates, leading to unchanged expectations for the
year as a whole.
The strategic review of API's 51% owned Chinese subsidiary is continuing, with
various options under consideration for eliminating the Group's exposure to
trading losses at the joint venture's foil manufacturing operation in Shanghai.
For further information, please call:
API Group plc Tel: +44 (0) 1625 650334
Andrew Turner, Group Chief Executive
Chris Smith, Group Finance Director
Grant Thornton Corporate Finance Tel: +44 (0)20 7383 5100
Philip Secrett / Colin Aaronson
Numis Corporate Broking Tel: +44 (0)20 7260 1000
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Source: API Group PLC via Thomson Reuters ONE