API revives dividend

Clearly, the dividend will placate API's two major shareholders - Steel Partners and Wynnefield Capital - who tried unsuccessfully to sell the business earlier this year. But operational improvements are expected, too, and broker Numis Securities still anticipates full-year adjusted pre-tax profit of £7.1m, giving adjusted EPS of 9.2p (from £6.8m and 8.7p in 2013).

Profit fell by a fifth at API's core laminates division, to £3.3m, after it lost volume following packaging changes and following reduced allocation from a big UK drinks firm. Still, a new high-spec laminates contract has finally hit targets and should underpin volumes there. Ironing out manufacturing inefficiencies over the next six months should help, too. Elsewhere, restructuring at the European foils division will save £0.3m a year and, despite associated disruption, first-half profit soared 27 per cent to £0.9m. A new system affected supply at the American foils operation, too, yet profit still edged up to £1.1m. Losing a long-standing contract tipped the holographics division into the red, although cost-cutting should mean it breaks even by the fourth quarter.