API Group ends sale process and warns on full year results

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.

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".

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.

NR

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021