Chairman Cameron McLatchie said tough trading conditions prevented film and sack manufacturer British Polythene Industries (96 Port Glasgow Road, GB-Greenock PA15 2RP; www.bpipoly.com) from achieving its full potential in 2002. The company announced pretax profits on continuing operations for 2002 of GBP 13.3m, down 17.9% from GBP 16.2m in 2001. Operating profits were GBP 17.5m, down from GBP 21.8m on sales 2.8% lower at GBP 250m. Exceptional costs of GBP 2.1m during the year included the impact of closing manufacturing sites in Dublin and Rochdale and the restructuring of central costs. “Volumes from continuing operations rose,” said McLatchie, “and we remain very efficient compared with other manufacturers in our industry.”

All the company´s businesses were profitable in 2002, with performance outside the UK in Europe and China meeting expectations. UK business continued to be hit by imports, but these now appear less attractive and this should have a positive impact on BPI´s stretchwrap and heavy duty sack operations. Also, says McLatchie, a number of BPI´s competitors in the UK and Europe are in financial difficulties and are being forced to pass on polymer price rises more quickly. BPI´s staffing level dropped again in 2002 and at the year´s end stood at 3,321, compared with 5,250 five years previously.

Cameron McLatchie says BPI began 2003 with a strong order book and he is confident of the company´s future despite raw material supply difficulties. Acquisition opportunities will remain under consideration and cash will continue to be invested to achieve further organic growth. A deficit in the company pension scheme will see BPI increase its contributions by GBP 1.8m in 2003. It continues to await news of any penalties to be imposed by the European Commission since being found guilty of anti-competitive actions. Finance director John Langlands is to take over as group chief executive from McLatchie, who will continue as chairman.