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
Intelligent Automation is now one of the key business imperatives for CIOs and CISOs impacting all areas of business today. In his session at 21st Cloud Expo, Brian Boeggeman, VP Alliances & Partnerships at Ayehu, will talk about how business value is created and delivered through intelligent automation to today’s enterprises. The open ecosystem platform approach toward Intelligent Automation that Ayehu delivers to the market is core to enabling the creation of the self-driving enterprise.
"At the keynote this morning we spoke about the value proposition of Nutanix, of having a DevOps culture and a mindset, and the business outcomes of achieving agility and scale, which everybody here is trying to accomplish," noted Mark Lavi, DevOps Solution Architect at Nutanix, in this SYS-CON.tv interview at @DevOpsSummit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
"We're here to tell the world about our cloud-scale infrastructure that we have at Juniper combined with the world-class security that we put into the cloud," explained Lisa Guess, VP of Systems Engineering at Juniper Networks, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Enterprise architects are increasingly adopting multi-cloud strategies as they seek to utilize existing data center assets, leverage the advantages of cloud computing and avoid cloud vendor lock-in. This requires a globally aware traffic management strategy that can monitor infrastructure health across data centers and end-user experience globally, while responding to control changes and system specification at the speed of today’s DevOps teams. In his session at 20th Cloud Expo, Josh Gray, Chie...
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, discussed how to use Kubernetes to set up a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace. H...
Consumers increasingly expect their electronic "things" to be connected to smart phones, tablets and the Internet. When that thing happens to be a medical device, the risks and benefits of connectivity must be carefully weighed. Once the decision is made that connecting the device is beneficial, medical device manufacturers must design their products to maintain patient safety and prevent compromised personal health information in the face of cybersecurity threats. In his session at @ThingsExpo...
All organizations that did not originate this moment have a pre-existing culture as well as legacy technology and processes that can be more or less amenable to DevOps implementation. That organizational culture is influenced by the personalities and management styles of Executive Management, the wider culture in which the organization is situated, and the personalities of key team members at all levels of the organization. This culture and entrenched interests usually throw a wrench in the work...
Detecting internal user threats in the Big Data eco-system is challenging and cumbersome. Many organizations monitor internal usage of the Big Data eco-system using a set of alerts. This is not a scalable process given the increase in the number of alerts with the accelerating growth in data volume and user base. Organizations are increasingly leveraging machine learning to monitor only those data elements that are sensitive and critical, autonomously establish monitoring policies, and to detect...
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
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.
SYS-CON Events announced today that Massive Networks will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Massive Networks mission is simple. To help your business operate seamlessly with fast, reliable, and secure internet and network solutions. Improve your customer's experience with outstanding connections to your cloud.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
Everything run by electricity will eventually be connected to the Internet. Get ahead of the Internet of Things revolution and join Akvelon expert and IoT industry leader, Sergey Grebnov, in his session at @ThingsExpo, for an educational dive into the world of managing your home, workplace and all the devices they contain with the power of machine-based AI and intelligent Bot services for a completely streamlined experience.
Because IoT devices are deployed in mission-critical environments more than ever before, it’s increasingly imperative they be truly smart. IoT sensors simply stockpiling data isn’t useful. IoT must be artificially and naturally intelligent in order to provide more value In his session at @ThingsExpo, John Crupi, Vice President and Engineering System Architect at Greenwave Systems, will discuss how IoT artificial intelligence (AI) can be carried out via edge analytics and machine learning techn...