Josh Brooks / PackagingNews.UK
API doubles pre-tax profits as laminates and holographics boom
Flexibles group API has more than doubled pre-tax profits in the first half as major growth in its laminates and holographics businesses and higher selling costs paid off.
Sales in the group’s laminates business rose 44% year-on-year to £27.7m for the six months to 30 September, while its holographics division posted a 48% uplift in sales at £6.8m.
Pre-tax profits were up by 123% at £2.9m for the period, while overall sales were up 24% at £58.5m.
Today’s statement revealed that the group’s £4m investment in new equipment at its Poynton laminates site would be operational next April.
The investment is the result of a five-year deal, announced in July, with an unnamed FMCG group that will add £15m-£20m in annual turnover for the group.
It also revealed that API has separated the management of its holographics division, based in Salford, from its European foils division to give a stronger focus on specific strategies to grow the business.
Price rises
Elsewhere, the group reported flat or falling volumes but rising revenue as rising input costs were passed on to customers.
In its European foils business, API increased sales 6% to £15.2m despite 5% lower volumes; while its Foils America business increased sales 7% to £12.5m, while volumes remained flat.
API also revealed that it had not booked any exceptional charge for flood damage caused by Hurricane Irene at its New Jersey facility, despite an initial estimated impact of £700,000.
In this morning’s statement, API chief executive Andrew Turner (pictured) 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.
He said that the group’s management remained focused on “improving the quality and resilience of the businesses and further enhancing our product and service offering to customers”, but gave a cautious outlook given the Eurozone’s ongoing crisis.
He said: “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.”
—————————————————
API H1 2011 RESULTS
£m, six months to 30 September 2011
Group turnover 58.5 (2010: 47.0)
Operating profit 3.8 (2.5)
Pre-tax profit 2.9 (1.3)
SEGMENT TURNOVER (including internal sales)
Foils Europe 15.1 (14.3)
Foils Americas 12.5 (11.7)
Holographics 6.8 (4.6)
Laminates 27.7 (19.2)
Tel:886-2-28941823 Fax:886-2-28941837 E-mail:viya@packsourcing.com
Copyright Notice © 2015 New Insight Publishing Ltd.. All rights reserved.
Powered by Packsourcing