26th Jan 2009 07:00
For release 26 Jan 09
API Group plc
Trading Update
26th January 2009
API Group (LSE:API), the specialist foils and packaging materials company, today announces the following trading update.
After reviewing performance in the third quarter and the outlook for the remainder of the financial year, the Board has reduced its expectations for Group results for the year ending 31 March 2009.
In line with many other manufacturers in the current economic climate, the Group is experiencing a significant reduction in demand. Full year revenues are now expected to show a year-on-year decline of approximately 3% at constant exchange rates.
The Group has already reduced headcount by circa 10% compared to September 2008 and is continuing to pursue all options for additional cost reduction without damaging future business prospects. Recent changes in exchange rates, in particular the weakening of Sterling against the Euro, will have a net favourable impact on margins in the coming months.
Whilst the Group is still forecasting to report a trading profit from continuing operations, it now expects to report a pre-exceptional loss before tax for the full year. The business is continuing to operate within its banking covenants.
Enquiries
|
Andrew Turner, Group Chief Executive, API Group plc |
01625 650334 |
|
Nicola Biles, Financial Dynamics |
020 7831 3113 |
|
Numis Securities Limited Nick Westlake, Nominated Advisor James Serjeant, Corporate Broking |
020 7260 1000 |
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