Abrdn Property Share News (API)

Packaging and holograms supplier API Group said it expects trading results from continuing operations for the year ended 31 March 2011 to be ahead of market expectations boosted by a stronger than expected second half performance from the Laminates division. The group, which makes decorative and security packaging materials for use in the tobacco, drinks, luxury goods industry, said results in the Foils businesses have been in line with expectations. However margins had come under pressure from increasing raw material costs and the lag in passing these through in higher selling prices, partly offset by increased holographics volumes, API explained. Cash flow has been strong at the group and it expects to report net debt for the year end of below £10m compared to £18.5m in 2010. As API enters the new financial year, it said the high level of activity in Laminates is being sustained whilst the outlook in Foils is improving as raw material costs stabilise and margins start to recover as a result of the action already taken on pricing. CJ