BPI.L Regulatory News (BPI)

9 May 2013

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 2012 to date, ahead of its Annual General Meeting to be held today in Greenock at 12 noon.

Our unaudited results for the first four months are ahead of last year and we currently anticipate a good result for the first half.

Trading conditions continue to be challenging and have not been assisted by the cool weather that has delayed demand in certain sectors. Year-on-year, overall volumes are slightly behind after four months but we anticipate some recovery as delayed orders for agricultural film are despatched.

The colder than normal spring has meant that farmers are getting good use from last year's silage, and we anticipate robust demand for silage stretch-wrap this year. Sales of this product are already ahead of last year.

Raw material prices increased at the start of the year, but have slipped in the last few weeks. We anticipate that prices will continue to erode over the next few months, following the current downward trend in naptha and ethylene input costs.

On 30th April, we completed the acquisition of the Flexfilm Group for a cash consideration of £5.5 million, subject to an adjustment for net assets. Flexfilm, located in Winsford, is an extruder of high quality film for the converter sector mainly for food markets, with a subsidiary, Jordan Plastics, located in Portadown, supplying printed film and bags, mainly to the food industry in Ireland. In its last financial year to 31 December 2012 Flexfilm Group's sales were £13.4 million and the operating profit was £0.8 million. The EBITDA, adjusted to exclude non recurring costs, was £1.3 million and adjusted net assets were £3.0 million.

We anticipate that this acquisition will be accretive in this financial year, and that it will further strengthen our position in servicing the food sector. This acquisition, combined with increased capital expenditure and the delayed agricultural season, will result in our borrowings at the end of June being higher than at the same point last year.

Despite adequate returns from invested assets, we currently anticipate that the effect of lower bond yields and the higher inflation rate assumption will increase the calculated deficit in our pension fund at the end of the first half.

We have no reason to change our view that we anticipate a further satisfactory year in 2013.

Cameron McLatchie

Enquiries:

Cameron McLatchie 01475 501000

Chairman

John Langlands 01475 501000

Chief Executive

Charlie Palmer 0207 831 3113

FTI Consulting