API considers selling itself in third quarter

Laminate and foil manufacturer API says sales will come in ahead of 2010's full-year numbers as it prepares to put itself up for sale.

A trading update released on Friday revealed that full-year results (due May 30th) will be in line with expectations, with sales 14% ahead of last year at approximately £114m.

The group's net debt position is predicted to close the year at £8.5m.

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The laminates, holographics and foils businesses in the US have all delivered year-on-year growth in profits. At foils Europe, weaker volumes offset the impact of lower raw material costs.

The big issue for API is an open letter it received in February from its two largest shareholders, Steel Partners and Wynnefield Capital, suggesting that it began an auction process for a sale of all the company's shares.

The management have responded by saying that such an auction would best be conducted in the third quarter of this year.

API shares were flat at 11:00 at 57.75p. In the last 12 months the stock has nearly quadrupled in value although the shares are still 85.6% away from their peak in 1999.

BS