API announced that Ashley had resigned "to pursue other interests". He has been replaced by finance director David Walton. Ashley, the former chief executive at Wace, had been with the troubled group for three-and-a-half years.

Sales in the six months to 31 March were down 2% at 82.2m, but the 1.7m operating loss at metallised papers offset an "encouraging" recovery in performance elsewhere in the group, leading to an overall operating loss of 600,000. API's loss before interest and tax was 19.7m, including a 4.3m exceptional charge and a 14.4m goodwill write-off following last year's sale of Learoyd Packaging and Morris Plastics.

Metallised papers are produced at Caerphilly-based Henry & Leigh Slater, which was blighted by production issues including problems with a key item of equipment that resulted in increased levels of waste and overtime. API's board said it was "concerned regarding the long-term prospects for this business". In addition the group is also looking at future options for the non-core businesses within its converted products division.