LONDON (Alliance News) - British Polythene Industries PLC saw its shares bid higher on Friday after it reported increases in profit and revenue in the first half on the back of an improved performance in the UK and Europe.
The strong performance prompted the manufacturer of polythene film to hike its interim dividend and say it anticipates a positive outcome for all of 2014.
Pretax profits rose 5% to GBP14.8 million in the six months to June 30, against GBP14.1 million a year earlier. Revenue in the period was slightly lower year-on-year, down to GBP281.1 million from GBP282.2 million a year earlier.
The company said it would hike its interim dividend by 11% to 5.0 pence per share from 4.5 pence last year.
Shares in the company were hovering around the top of the risers in the FTSE All-Share index, up 4.3% to 610.00 pence.
The company said operating profits from its UK arm were up 25% in the first half, while its European operations posted a 9% improvement on a local currency basis, which was slightly offset by adverse currency translation due to the strength of sterling.
The stronger performance in its UK and European arms was, however, offset by a loss from its North American operations, impacted by the late delivery of a major replacement item at one of its plants. The company said the replacement machinery has now been installed and is operating, and it expects to benefit from the changes in 2015 and beyond.
"The good performance in the UK and Europe has continued into the second half, our order books are sound, and we now anticipate a good outcome for 2014," said Chairman Cameron McLatchie.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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