29th Feb 2016 08:31
LONDON (Alliance News) - British Polythene Industries PLC on Monday delivered a rise in pretax profit and raised its dividend despite demand, price and currency challenges which faced the group in 2015.
The company said its pretax profit for the year to the end of December rose to GBP23.1 million from GBP22.2 million, despite revenue dipping to GBP468.3 million from GBP499.0 million.
Total volumes for British Polythene fell marginally in the year due to reduced demand from a number of UK sectors, while revenue was further pushed down by lower average polymer costs and the effect of the weak euro on sales and profit.
However, a return to profit in its North American arm, a good performance from its UK recycling unit and a strong underlying result from Europe meant margin improvements across the business pushed up pretax profit.
British Polythene said it will pay a final dividend of 12.0 pence per share, up from 11.0p, meaning its total dividend rises to 18.0p from 16.0p.
"Our results have shown an increase for the seventh consecutive year. This outcome is extremely encouraging given turbulent polymer costs during the first half, the adverse impact of currency on our European profits, and a year which delivered a marginal overall reduction in volumes," said Chairman Cameron McLatchie.
He added that 2016 had started well and the group expects to make further progress in the current year.
British Polythene shares were up 5.7% to 681.73p early Monday, one of the best performers in the FTSE All-Share.
By Sam Unsted; [email protected]; @SamUAtAlliance
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