In a statement issued with its interim results today, the group said it was "committed to the development of its profitable foils and laminates business, where there is still scope for further improvement".  A review is underway and API plans to make changes later this year that will reduce overheads and improve performance.

Its interim results for the six months to 31 March showed operating profits on continuing operations prior to exceptionals up 13.2% to 1.4m on sales on continuing business that slipped slightly to 52.6m from 52.9m.

Sales overall were down 20.7% to 65.2m following the disposal of API's metallised paper and converted products businesses. The bottom line loss for the period was 12.8m (2004 loss: 21.2m).

The results were also boosted by a 9m payment received as  a result of the sell-offs. While first quarter trading was described as "strong" there was a marked slowdown in some markets during the second quarter.

Some parts of the business were also affected by uncertainty as a result of the approach earlier this year by conglomerate Illinois Tool Works, which ultimately did not result in a takeover bid.

API's board said it was "confident of the group's ability to deliver an appropriate return to shareholders as an independent entity".

The group's share price has fallen 4.5p in trading this week, and was down 0.5p to 136p today.