1st Jul 2009 07:00
TRADING UPDATE
1 July 2009
Ahead of the Interim Results for the six months to 30 June 2009, to be announced on 28 August 2009, British Polythene Industries PLC is providing an update on current trading.
We indicated at our AGM on 14 May that the results for the first six months would be ahead of the same period last year. We can confirm that this will be the case and that, even after absorbing the previously indicated £2 million of restructuring costs, including closure costs for Stockton and Cowdenbeath, our profits will be comfortably ahead of our previous expectations for what is traditionally our better first half.
This has been achieved despite lower overall volumes and a difficult trading environment and is mainly due to more stable input costs, a reduced cost base, more favourable rates of exchange and slightly better than anticipated demand from certain sectors.
Silage stretch volumes are broadly on target after six months, but we cannot as yet anticipate that we will reach the exceptional volumes of 2008, when we had an extended silage season due to the very wet summer.
Construction demand remains depressed, although sales of packaging for bagged aggregates has been slightly better than expected.
Demand from the horticultural sector for packaging for garden composts has been better than for many years.
Our polymer suppliers are currently pressing for increases in polymer prices in an attempt to recover internal feedstock transfer prices. It remains to be seen how successful they will be.
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 |
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