Stockport based API Group plc (AIM:API), a leading manufacturer of specialist foils and packaging materials, has today announced its final results for the year ended 31 March 2013.
Despite recording slightly lower than previous revenues, a decrease of £1.5m from £113.9m in 2012 to £112.4m, pre-tax profit has actually increased by 35% to £6.8m, up on the previous financial results of £5.1m.
Pre-tax operating profits were also ahead by 23% to £8.5m against last year at £6.9m
Earlier this year, in February, the API packaging company abandoned plans to sell the business after careful deliberation resulted in the group’s owners concluding that the current bids were not in the best interest of the company or its shareholders.
News of the proposed sale was reported at Marketing Stockport when the AIM listed Stockport packaging and foils manufacturing group reported that it has recieved “below market value” offers after being put up for sale in September last year when it stated a market value of £48m.
API, which is partly owned by US investors Steel Partners and Wynnefield Capital who own 32.3% and 29.6% respectively, said back in January that it had received a number of offers as it has seen its share price rise by more than 30% from 68p to 90p over the past 2 months.
Operational Highlights from 2013 results include:
Strong profits growth from Laminates and the two Foils businesses, partially offset by decline at Holographics.
Cash generation and balance sheet strength supports capital expenditure to improve operational efficiencies and exploit growth opportunities. Capital additions in 2013 of £5.1m (2012: £3.5m).
Bulk shipments now commenced on major Laminates supply contract. Continued build-up in volumes expected throughout the new financial year.
Commenting on the results, Richard Wright, Non-Executive Chairman of API Group plc, said:
“The Board is pleased to report another year of significant profit growth. The Group’s balance sheet strength and cash flow performance has started to provide significant flexibility for capital investment in growth projects and operational improvements and the resumption of dividend payments.
“The Group has demonstrated resilience in the face of challenging economic circumstances and the Board remains confident in the prospect for further progress in the year ahead.”