BPI.L Regulatory News (BPI)

27 Jun 2007 07:00

British Polythene Industries PLC27 June 2007 BPI PLC PRE-CLOSE PERIOD TRADING UPDATE 27 June 2007 Prior to entering the close period ahead of the Interim Results for the sixmonths to 30 June 2007, to be announced on 3 September 2007, British PolytheneIndustries PLC has issued an update on current trading. As we indicated at our AGM on 10 May, trading has been reasonable althoughvolumes have been somewhat sluggish and margins have been under constantpressure from attritional increases in polymer costs. Despite this, we haveseen the benefits of actions taken to rationalise certain activities earlierthis year and we anticipate that the overall outcome for the first six monthswill only be a little below the same period in 2006. This will be asatisfactory result during a period of challenging market conditions and risinginput costs Silage stretch-film volumes have met our expectations and, unlike last year whenthe dry summer curtailed the season, the current weather pattern bodes well forcontinued sales through the next few months. Despite the margin pressure, thisshould give us a better start to the second half than we enjoyed last year. Polymer costs remain high and our suppliers have forced through small increasesevery month this year. As we have indicated previously, this is a difficultscenario for us, as we cannot re-price all of our sales monthly and this lag inpricing affects our margins. It is still our opinion that, despite high oilfeedstock prices, polymer prices will come down at some time in the next year orso as new capacity comes on stream globally although it is unlikely that we willsee any assistance from such a scenario in the coming six months. Enquiries : Cameron McLatchie, Chairman British Polythene Industries PLC 01475 501000 John Langlands, Chief Executive British Polythene Industries PLC 01475 501000 Tim Spratt/Nicola Biles Financial Dynamics 0207 831 3113 This information is provided by RNS The company news service from the London Stock Exchange