Shares in API Group tumbled on Wednesday after the company reported that its full year results are likely to be marginally below previous management expectations, which came as a double blow as the group announced has opted not to go ahead with the anticipated sale of the company.
The drop in full year results is primarily a result of a continued weak performance in the Holographics division.
The company revealed it had concluded that a sale of the group at this time as it is "unlikely to gain sufficient recognition for the underlying value of the business or to deliver best value for shareholders", and as a result, it has "decided to terminate the formal sale process with immediate effect".
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In a statement API said: "The board remains focused on maximising shareholder value and committed to maintaining an open dialogue with shareholders about how best that can be achieved."
The firm was keen to stress that its results for the current financial year (ending March 31st) will demonstrate substantial year-on-year improvement, due to "excellent" progress at Foils Americas, Foils Europe and Laminates.
However, it admitted the outlook for both Holographics and Laminates is now "less than favourable", saying that within the latter the favourable impact on volumes for next year will be mitigated by some recent losses on other supply positions.
"The board remains confident that the group will make further progress in the year ahead," it said.
The share price had fallen 23.55% to 52.75p by 08:45 on Wednesday.
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