Welcome!

News Feed Item

API Group PLC announces Final Results

STOCKPORT, UNITED KINGDOM -- (Marketwired) -- 06/04/14 --



Press Release                                         4 June 2014


                           API Group plc


                      ("API" or the "Group")


                            Final Results


API Group plc (AIM: API), a leading manufacturer of specialist foils and
packaging materials, announces its final results for the year ended 31
March 2014.


Financial Highlights

* Revenues ahead by GBP2.3m (2.0%) to GBP114.7m (2013: GBP112.4m).

* Profit before tax unchanged at GBP5.6m (2013: GBP5.6m). Profit
  before tax of GBP6.3m on a pre-exceptional basis (2013: GBP6.6m).

* Stronger second half, with pre-exceptional profit before tax ahead
  by GBP0.5m (+15%).

* Diluted earnings per share 7.1p (2013: 7.2p). Excluding exceptional
  items, diluted earnings per share 7.8p (2013: 8.4p).

* Proposed final dividend of 1.3p per share, making 2.0p for the
  full year (2013: 0.0p).

* Cash flow from operations of GBP9.0m (2013: GBP8.6m), converted at
  91% of EBITDA (2013: 86%) and a net cash inflow of GBP2.8m
  (2013: GBP1.2m).

* GBP0.2m net cash at year end (2013: net debt of GBP2.6m), the
  first time for 15 years that the Group has reported a net cash
  position.


Operational Highlights

* Another good performance from Laminates and further progress at
  Foils Europe. Holographics back to breakeven in final quarter
  after cost reduction measures. Operating margin maintained at
  Foils Americas despite weaker sales in the second half.

* Laminates major new supply contract fully on stream during second
  half.

* Restructuring of UK foils operations completed; new distribution
  facility established in Sheffield, leaving Livingston to
  concentrate on manufacturing.

* New ERP solution successfully implemented by Foils Americas;
  roll-out in Foils Europe scheduled for 2014.

* Capital additions and joint venture investment of GBP3.8m (2013:
  GBP5.5m), including down payments on new metallising equipment
  for UK and US foils plants.


Commenting on the results, Andrew Turner, Group Chief Executive of API
Group plc, said:"In spite of a slightly weaker profit performance, these
results
demonstrate further strengthening of the Group's financial position,
combined with continued substantial investment in the operating assets
of the business. The year-end net cash balance and the re-introduction
of a dividend after a break of more than ten years, represent important
milestones in the rehabilitation of the Group.

Operational improvement and investment initiatives already completed,
as well as further projects planned for the new financial year, are
expected to strengthen API's position in its key markets and enhance
prospects for future sales and profit growth."             - Ends -


For further information:

API Group plc
Andrew Turner, Group Chief Executive      Tel: +44 (0) 1625 650 334
Chris Smith, Group Finance Director                www.apigroup.com


Numis Securities (Broker)
James Serjeant                            Tel: +44 (0) 20 7260 1000
                                                      www.numis.com


Cairn Financial Advisers (Nominated Adviser)
Tony Rawlinson / Avi Robinson              Tel: +44 (0) 20 7148 7900
                                                    www.cairnfin.com


Media enquiries:

Abchurch
Henry Harrison-Topham / Quincy Allan       Tel: +44 (0) 20 7398 7710
[email protected]               www.abchurch-group.com



CEO Review


Overall financial results

Group revenues for the twelve months to March 2014 increased by 2.0%,
at both actual and constant FX rates, to GBP114.7m (2013: GBP112.4m).
Sales volumes were higher by 2.7%, with second half volumes up 7.1% on
the prior year compensating for a small decline in the first six
months.

In spite of the higher sales levels, added value margin declined
slightly due to sales mix between the business units, the impact of
less favourable exchange rates and higher levels of production scrap at
Laminates. This, together with slightly higher variable costs, more
than offset the contribution from higher sales to leave pre-exceptional
operating profits down by 4.8% at GBP7.4m (2013: GBP7.8m). Operating
margin was also lower, by 0.4%, at 6.5%.

At segment level, full year profits advanced at Laminates (GBP0.2m) and
Foils Europe (GBP0.1m) on the back of stronger volumes. Holographics
losses increased by GBP0.4m, due to lower external sales, and Foils
Americas profits declined by GBP0.2m, due to lower activity in the last
quarter.

In a reversal of the pattern experienced in the last two years and as
anticipated in our interim results statement, profitability improved
significantly in the second half; up GBP0.5m (+15%) on the first half.
Progress at Foils Europe (+GBP0.3m) and reduced losses at Holographics
(+GBP0.4m), as a result of cost reduction measures, more than
compensated for the weaker second half at Foils Americas (-GBP0.4m).
Operating margin for the second half improved to 6.9% compared to 6.1%
in the first half.

For the year as a whole, profit before tax was unchanged, at GBP5.6m;
although a small tax charge led to a marginal fall in diluted earnings
per share to 7.1p (2013:7.2p).

Exceptional costs of GBP0.7m (2013: GBP1.0m) have been separately
disclosed and relate to one-off costs and expenses associated with
organisational change in three business units. Interest costs,
including the new IAS19 pension interest charge, were GBP0.1m lower
at GBP1.1m (2013:GBP1.2m). On a pre-exceptional basis, profit before
tax was 4.5% lower at GBP6.3m (2013: 6.6m) and diluted earnings per
share were 7.8p,compared to 8.4p for the prior year.

Cash from operations, post exceptional items, converted at 91% of
EBITDA (2013: 86%), with a net cash inflow of GBP2.8m compared to
GBP1.2m for the previous year. Whilst cash capital expenditure of
GBP3.5m was lower than the previous year (2013: GBP5.3m) capital
additions still represented 1.4 times depreciation and will remain
above depreciation for at least another two years as additional
capacity is introduced into the Foils businesses. The Group completed
its investment in the Czech Joint Venture after a further GBP0.5m
transfer of funds on top of the GBP0.4m paid last year. With working
capital broadly unchanged, the Group reported a small net cash
position at the financial year end of GBP0.2m (2013: GBP2.6m debt).


Dividend

Following payment of the interim dividend in January, the Board is
pleased to propose a final dividend of 1.3p per share. The total,
full-year dividend of 2.0p will be put to shareholders for approval at
the Annual General Meeting on July 15th and subject to this approval,
it is our intention that the final dividend will be paid on August 1st
to shareholders on the register as at July 11th, with an ex-dividend
date of Wednesday July 9th.


Outlook

The Board expects a continuation of the second half trading momentum,
with progression in results for the first half and for the financial
year as a whole.

At this stage, it is unclear how long Foils Americas will be affected
by the reduced demand from metallic pigment customers, but any impact
on the Group's results should be more than compensated by the
elimination of trading losses at Holographics and the benefit of last
year's restructuring at Foils Europe.

In respect of general market conditions, Foils Europe continues to
experience steady overall demand, whereas recent activity in the
decorative foils market in North America appears somewhat slower than
usual. At Laminates, the new financial year has started strongly and
there is a good pipeline of new business development projects.

Management is pressing ahead with its operational improvement and
growth agenda, including the roll-out of the Group's new ERP platform
and investments in additional capacity for the Foils businesses. These
initiatives will strengthen API's ability to service customers in key
markets and enhance the Group's prospects over the medium term.


Click on, or paste the following link into your web browser, to view
the associated PDF document:

http://www.rns-pdf.londonstockexchange.com/rns/7728I_1-2014-6-3.pdf





                    This information is provided by RNS
          The company news service from the London Stock Exchange

END

Contacts:
RNS
Customer
Services
0044-207797-4400
Email Contact
http://www.rns.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Struggling to keep up with increasing application demand? Learn how Platform as a Service (PaaS) can streamline application development processes and make resource management easy.
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
If there is anything we have learned by now, is that every business paves their own unique path for releasing software- every pipeline, implementation and practices are a bit different, and DevOps comes in all shapes and sizes. Software delivery practices are often comprised of set of several complementing (or even competing) methodologies – such as leveraging Agile, DevOps and even a mix of ITIL, to create the combination that’s most suitable for your organization and that maximize your busines...
In his session at @ThingsExpo, Chris Klein, CEO and Co-founder of Rachio, will discuss next generation communities that are using IoT to create more sustainable, intelligent communities. One example is Sterling Ranch, a 10,000 home development that – with the help of Siemens – will integrate IoT technology into the community to provide residents with energy and water savings as well as intelligent security. Everything from stop lights to sprinkler systems to building infrastructures will run ef...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
In the world of DevOps there are ‘known good practices’ – aka ‘patterns’ – and ‘known bad practices’ – aka ‘anti-patterns.' Many of these patterns and anti-patterns have been developed from real world experience, especially by the early adopters of DevOps theory; but many are more feasible in theory than in practice, especially for more recent entrants to the DevOps scene. In this power panel at @DevOpsSummit at 18th Cloud Expo, moderated by DevOps Conference Chair Andi Mann, panelists will dis...
Up until last year, enterprises that were looking into cloud services usually undertook a long-term pilot with one of the large cloud providers, running test and dev workloads in the cloud. With cloud’s transition to mainstream adoption in 2015, and with enterprises migrating more and more workloads into the cloud and in between public and private environments, the single-provider approach must be revisited. In his session at 18th Cloud Expo, Yoav Mor, multi-cloud solution evangelist at Cloudy...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...