In its interim results for the six months to 30 September, the group posted pre-tax profits of £2.9m, down from £4m at the same point last year, on revenues of £56.9m (2012: £58.8m).
Operating profit, before exceptional items, was £3.5m (2012: £4.7m).
Following an organisational restructure, the Cheshire-headquartered business now employs around 550 people at 15 sites globally, with further UK sites in Sheffield, Manchester and Livingston, Scotland.
In the UK its divisions, API Foils, API Laminates and API Holographics operate out of Livingston and Sheffield, Cheshire, and Manchester respectively.
The company said its foils division, which has been split between Livingston and Sheffield, was benefitting from restructuring with ERP implementation projects completed in the first half while both units were experiencing encouraging levels of customer demand.
Meanwhile, continuing strong profits from the laminates business was underpinned by healthier core volumes thanks to a major new supply contract.
Cost-reduction measures were ongoing in API’s holographics arm, the company said, with the aim of restoring the business to a breakeven position ahead of the final quarter. However, recovering lost ground in security and authentication markets would take more time.
Overall, the company said it was in “much better shape after the progress made during the first six months of the year” and that further “improvements in operational effectiveness” on top of improved economic conditions, resulted in a positive outlook for 2014/15 and beyond.
API chief executive Andrew Turner said: "Whilst results were, as expected, behind last year's strong first-half comparatives, a number of important projects were completed in the period designed to strengthen the operating platform and enhance our proposition to customers.
"These improvements, plus the cost-reduction programme in holographics and scheduled capacity additions for both foils businesses, underpin our confidence in the group's prospects and the board's decision to recommence dividend payments after a break of more than 10 years."
