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13 May 2010 07:00
13 May 2010
BRITISH POLYTHENE INDUSTRIES PLC
AGM & INTERIM MANAGEMENT STATEMENT
British Polythene Industries PLC ("BPI") is issuing its Interim Management Statement for the period from 1 January 2010 to date, ahead of its Annual General Meeting to be held today in Greenock at 12 noon.
As indicated in our 2009 Annual Report and Accounts, trading conditions remain challenging and demand is still below that experienced in the period before the summer of 2008. However, we have seen some recovery in demand compared with the poor start we experienced in 2009 and volumes are up an encouraging 5%. This volume increase has not fully translated into an increase in the bottom line, as margins have been squeezed by continuing increases in polymer prices, despite the recent abatement in oil prices and increased global capacity for polyethylene polymer. Output from new capacity in the Middle East has failed to reach the EC, and speciality polymers, which we use extensively for our higher specification products, have shown even greater increases in price than commodity grades.
On the trading front, some risks remain for the growing season as weather conditions can reduce grass yields and consequent demand for silage films.
Despite these issues, we currently expect that overall results for the first six months of the year will be broadly similar to last year. This would be a good outcome in these market conditions.
Cameron McLatchie
Enquiries:
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Cameron McLatchie Chairman |
01475 501000 |
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John Langlands Chief Executive |
01475 501000 |
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Tim Spratt/Nicola Biles |
0207 831 3113 |
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Financial Dynamics |
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