Abrdn Property Share News (API)

Foils group API moved into profit in the year to 31 March, but the shares fell after the company said that it took a loss of £600,000 on its disposal of a stake in a Chinese subsidiary and that customers' spending plans are being affected by the tough economic climate.API, whose foil is used to package Elizabeth Shaw mint crisp chocolates and Colgate toothpaste, posted a pre-tax profit of £2.9m for the period, against a loss of £0.3m the previous year. Sales climbed to £100m from £79.2m.The company exited the Chinese business due to margin erosion caused by increased competition."The year has seen a step change in many aspects of the Group's financial position and it is particularly encouraging that, despite facing the challenge of unprecedented increases in the cost of raw materials, the Group has delivered its best trading performance for a number of years," Richard Wright, chairman of the Stockport-based company said."Results will continue to be influenced by the uncertain economic climate and by customer decisions affecting our more significant supply positions."API, which is not paying a dividend as it seeks to pay off debts, also complained of rising raw material costs.---RG