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12 May 2015 16:00
12 May 2015
BRITISH POLYTHENE INDUSTRIES PLC
AGM & TRADING UPDATE
British Polythene Industries PLC ("BPI") is issuing this trading update for the period from 1 January 2015 to date, ahead of its Annual General Meeting to be held today in Greenock at 16:30 hrs.
Volumes are ahead for the first four months mainly due to increased sales of silage stretchwrap reflecting new capacity. This resulted in the performance for the first four months being ahead of the same period last year.
In our Preliminary Statement at the end of February, we indicated that the price of polyethylene polymer had dropped during the first quarter. This position changed in March and April when a reduction in imports to the EC from the Middle East coincided with a number of declarations of force majeure by Western European polymer producers. The price has rebounded to high levels, with shortages in many grades.
We currently envisage this volatility continuing until the holiday season starts in Europe, when the subsequent reduced demand should allow supplies to get back in balance.
We will, as in previous years, be passing through these polymer price increases. Margins are likely to be impacted in the short term while these increases are in the process of being passed through.
Nevertheless, with the successes that we are achieving with new products in both the UK and European markets, and the recovery in the performance of our North American business, we remain confident in the outcome for 2015.
Cameron McLatchie
Enquiries:
Cameron McLatchie 01475 501000
Chairman
John Langlands 01475 501000
Chief Executive
Charlie Palmer/Lucy Delaney/Karen Tang 0203 727 1000
FTI Consulting
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