API experiencing reduction in packaging demand
API, the specialist foils and packaging materials company, today (26 January) warned that it was experiencing a significant reduction in demand and expected its annual revenues to be about 3% down.
In a trading update, the Stockport-based group said it had already reduced headcount by around 10% compared to September 2008 and was “continuing to pursue all options for additional cost reduction without damaging future business prospects”.
API – which manufactures decorative and security packaging materials for use in the tobacco, drinks, luxury goods, food and consumer products sectors and a range of security applications for use in tamper-proof and tamper-evident packaging – said although it was still forecasting to report a trading profit from continuing operations, it now expects to report a pre-exceptional loss before tax for the full year. The business was continuing to operate within its banking covenants.
