API sees profits double

Packaging and holograms supplier, API, saw profits more than double in the first half although it warned it could be hit by the eurozone sovereign debt crisis going forward.

Profit before tax at the firm was up 123% on the first half of 2010 to £2.9m.

Basic earnings per share were 3.6p, compared to 1.5p the year before.

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Revenue from continuing operations of £58.5m was 25% higher at constant exchange rates compared to the same period last year and 24% ahead at actual rates.

In comparison to the preceding six month period, revenues were up 11%.

The firm said that higher volumes accounted for 15% revenue growth, with the balance coming from higher selling prices.

Price increases broadly recovered the impact of the significant raw material price rises experienced in 2011, it added.

"We are conscious that the ongoing sovereign debt crisis could affect confidence in our customer base and consumer end markets, although the group's improved financial condition leaves it better placed to weather any difficulties that may lie ahead," said chief executive Andrew Turner.

API also said it would no longer be hit by a £700,000 charge for damage at its New Jersey manufacturing facility caused by Hurricane Irene.

"After further assessment and dialogue with insurers, that estimate has been revised downward and, whilst there may still be some cash cost, the charge to the income statement is now expected to be zero," the firm said.