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
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
The use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...