Stockport packaging manufacturers report slide in profits

A North West packaging manufacturer has announced increased revenues but a slide in profits for the six months ending 30 September.

API Group plc, of Stockport, reported revenues of £56.9 million, compared to £58.8 million for the first half of last year, but profits slumped to £3.5 million, down £1.2 million from 2012.

API manufacture packaging materials and specialist foils, and attribute the revenue increase to improved results in the foils businesses after restructuring the operation.

The board have implemented a cost reduction programme in Holographics to address the trading losses.

Commenting on the results, API’s chief executive, Andrew Turner said: “Whilst results were, as expected, behind last year’s strong first half comparatives, a number of important projects were completed in the period designed to strengthen the operating platform and enhance our proposition to customers.

These improvements, plus the cost reduction programme in Holographics and scheduled capacity additions for both Foils businesses, underpin our confidence in the Group’s prospects and the Board’s decision to recommence dividend payments after a break of more than ten years.“