Demand waning despite profit increase - BPI

Related tags Profit United kingdom

British Polythene Industries (BPI) has warned that they “anticipate a further year of patchy demand” despite a profit rise of 20%.

UK-based BPI said positives included their European business and the agriculture sector but from customers supplying the UK construction sector, demand was “subdued and patchy”.

Sales for the year, ending 31 December 2011, increased to £508m (€610.2m) from £478m (€574.1m) in 2010 and operating profit, before net restructuring, increased to £21.6m (€25.9m) from £17.9m (€21.5m).

Pre-tax profits rose £3.3m (€3.9m) to £19.1m (€22.9m) and net borrowings reduced to £31m (€37.2) from £45.6m (€54.7m) in 2010.

In November 2011, BPI announced the closure of a polythene bag plant in Swansea and added despite changes to UK industrial operations “neither of our two larger industrial sites is fully loaded, and the short-term outlook for demand does not look promising.”

Cameron McLatchie, chairman of BPI, said:“The group performed well in 2011, with results just ahead of market expectations and well ahead of 2010.

“This was achieved against a background of difficult trading conditions, with volatile raw material costs and periods of subdued demand from certain sectors.”

Related topics Processing & Packaging