UK packaging and holograms supplier API has reported a 24% revenue rise from continuing operations to £58.5m in the first half of 2011, compared with the same period last year.

The company said that higher volumes accounted for 15% revenue growth, with the balance coming from higher prices, which recovered from significant raw material price rises.

API CEO Andrew Turner said that the company remains conscious that the ongoing sovereign debt crisis could affect confidence in its customer base and consumer end-markets but that the group’s improved financial condition leaves it better placed to weather any difficulties that may lie ahead.

For the six-month period ending 30 September 2011, API’s pre-tax profits rose 123% to £2.9m, compared to the same period a year ago.

Operating profits from continuing operations were up 51% to £3.8m while the firm’s gross profit margin fell from 24.3% to 23.6% as it was hit by higher material costs.

API said price increases had broadly recovered the impact of raw material price rises and volumes had been increased by 15%, though production overheads had only increased by 4%.

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By GlobalData

The revenue of its Foils Europe division increased 6% to £15.2m, due to higher selling prices, while in the US it rose 7% to £12.5m.

The Holographics division saw sales growth of 48% to £4.02m, and Laminates revenues rose by 44% to £27.7m.

API also announced that it would not be hit by a exceptional charge for flood damage at its New Jersey manufacturing facility, which was initially estimated to be a £700,000 net loss.