BPI.L Regulatory News (BPI)

8 November 2013

BRITISH POLYTHENE INDUSTRIES PLC

INTERIM MANAGEMENT STATEMENT

British Polythene Industries PLC today issues the following Interim Management Statement in respect of the period to 7 November 2013.

The third quarter did not benefit from the exceptional growing conditions of late summer in 2012, with sales of silage stretch-wrap lower over the last few months. The cold spring and early autumn made 2013 one of the shortest growing seasons on record. Despite this, our cumulative sales of silage stretch-film are marginally ahead of 2012 due to the technical properties of our products and the strength of our brands.

We indicated that the polymer suppliers had imposed increases for July and August and a further increase was subsequently applied in September. The average polymer price for 2013 is at an all-time high, although we did see a small reduction in October, as European ethylene contract prices started to drop. These monthly increases compressed margins during the quarter, as prices were passed through to customers. We still feel that a more realistic price correction is due at some time, as raw material prices continue to defy global supply and demand issues, and lower cost feedstock is becoming more readily available to polymer producers where fracking is permitted.

Notwithstanding this raw material price volatility and challenging conditions in the third quarter, we expect our performance to be in line with current market expectations.

Cameron McLatchie

Chairman

Enquiries: