API has predicted that profits for the first half of the year will be materially less than previously expected due to the economic slowdown in North America.


Last year there was a significant decline in profits in the second half to 30 September. Profit before tax, goodwill and exceptional costs was 6.7m in the first half and 4.9m in the second.


We usually see 40% of profits in the first half of the year and 60% in the second, but last year this was reversed, said API finance director Dennis Holt. He said this had created a knock-on effect.


Derek Ashley, who was appointed chief executive of the speciality packaging group last month, has started a review of options to improve returns to shareholders, though no specific details were outlined.


The group has closed its Macclesfield metallised paper factory and some staff will transfer to Caerphilly.
It has also closed its Rochdale laminates factory and transferred staff to Poynton, Cheshire. The closures have led to 68 redundancies.


Former API chief executive Michael Smith resigned last year after the board was forced to issue a profit warning in July. APIs share price fell from 208p to 183p on the news.