BPI.L Regulatory News (BPI)

8 May 2008 07:01

British Polythene Industries PLC08 May 2008 8 May 2008 BRITISH POLYTHENE INDUSTRIES PLC AGM & INTERIM MANAGEMENT STATEMENT British Polythene Industries PLC is issuing its first Interim ManagementStatement for 2008, ahead of its Annual General Meeting to be held today inGreenock at 12 noon. "We indicated in the Annual Report and Accounts and at our preliminary resultsthat volumes had been mixed. Demand for certain products, particularly inconstruction and manufacturing, has been lower in the first quarter, but thishas been more than compensated for by increased demand for other products,particularly silage stretchwrap where we are having a successful early season.Aided by these stretchwrap sales and the additional tonnes from our Canadiansubsidiary, AT Films, volumes rose by just over 5% in the first quarter comparedwith the same period in 2007. Improved volumes were not matched by bottom line results, as we have continuedto be affected by the lag in passing on raw material cost increases and also bysubstantial increases in the costs of energy. As a result our profit before taxin the first quarter, was somewhat below the same period last year. Although raw material costs have stopped rising in mainland Western Europe, ourUK plants have had to accept increases as Sterling continued to weaken againstthe Euro. However, this movement in the value of the Euro is having two positive effectsfor our Group. Firstly, European profits are being increased by the translationeffect into Sterling. Secondly, currency movement is improving thecompetitiveness of our UK manufacturing operations, and recently we have beensuccessful in regaining work previously lost to European producers. We do have concerns over the projected increase in the costs of electricity andgas for the summer months, when we usually benefit from a seasonal reduction.Security of supply may well have been enhanced with the new gas pipeline toEurope, but the customer has yet to see any cheap gas coming through it. Last week we announced that we have commenced consultation with employees at oursite at Buckhurst Hill in Essex regarding the future of that operation. It isour current intention to close this small unprofitable site and move thebusiness to two other sites in Flint and Cowdenbeath. The Group is performing in line with our comments at the preliminary results. Wehave previously indicated that for many parts of our Group, 2008 was expected tobe a challenging year and we currently anticipate that, whilst we will have asteadier performance in the second quarter, the result for the first six monthswill remain somewhat behind the same period for 2007." Cameron McLatchie Enquiries: Cameron McLatchie 01475 501000Chairman John Langlands 01475 501000Chief Executive Tim Spratt/Nicola Biles 0207 831 3113Financial Dynamics This information is provided by RNS The company news service from the London Stock Exchange