BPI.L Regulatory News (BPI)

11 May 2012

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.

Current Trading

We indicated in our Preliminary Announcement that demand in the industrial and construction sectors remained subdued and we can confirm that this has continued to date with the result that our overall volumes are down on 2011.

Sales to the agricultural sector have been robust, and our concerns on less favourable growing conditions, due to less precipitation than in 2011, currently look misplaced.

Raw Material

We indicated that, after increases in January and February, we had been advised of further raw material price increases for March and that these were being reluctantly accepted by the market. Once again, European raw material prices have moved well ahead of the Far East, making imports of all plastic products more attractive from that source.

However, as anticipated in the Preliminary Announcement, we think that we have seen the peak of the current European cycle in April, and now anticipate a slight easing over the next few months. We have been passing through these increases to our customers and, as anticipated, the inevitable lag in this process is having a short term effect on our margins.

Results

Despite the above factors, the Board is pleased to confirm that our unaudited results to date are broadly equivalent to 2011. These results show an improvement in the performance of the UK business and the continued success of the European business. The European results are being translated at a less favourable exchange rate than last year, but our overall borrowings are being flattered by the quantum denominated in that currency. This is a good outcome, achieved in a difficult period, where we have seen significant raw material increases and poor volumes from certain sectors and a lower contribution in sterling from Europe. The UK performance vindicates the tough decisions that have had to be taken over the last few years to re-align capacity with demand and close under-performing operations.

Prospects

We have no reason to change our view that we anticipate a further satisfactory year in 2012.

Legal & Secretarial

We announced on 8 May that Ray Brooksbank will retire as Company Secretary on 31 August and that Hilary Kane, a partner of Maclay Murray & Spens LLP, will be appointed as Company Secretary and Legal Counsel. Hilary has worked with the Group for many years and has extensive knowledge of Group legal affairs.

Cameron McLatchie

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