First-half revenues were up 24% at £58.5m and operating profits from continuing operations were 51% higher at £3.8m.

Gross profit margin fell from 24.3% to 23.6% due to the dilution effect of higher material costs and selling prices.

Adjusted for raw material cost pass-through, gross profit margin would have been 1.5% ahead at 25.8%.

Chief executive Andrew Turner said the group has maintained its momentum of sales growth and profit improvement despite the challenging economic climate and volatile raw material prices.

He added: "Management remains focused on improving the quality and resilience of the businesses and further enhancing our product and service offering to customers.

"We are conscious that the ongoing sovereign debt crisis could affect confidence in our customer base and consumer end markets, although the group's improved financial condition leaves it better placed to weather any difficulties that may lie ahead."

At 9:31am: (LON:API) API Group share price was +5.25p at 42.5p

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