Headline operating profit increased by 7% in both the Cellular Polymers and Industrial Polymers Divisions of British Vita (GB-Manchester M24 2DB; www.britishvita.com) in 2003, but the partial disposal of its US associate and an operating loss in its Nonwovens Division due to incorrect accounting marred the group´s overall earnings performance. Sales were up 5%, to GBP 940m, but pretax profit tumbled from GBP 109.5m in 2002 to GBP 53.2m. During the year, GBP 80.8m was returned to shareholders via a share buy-back programme.

“Vita has delivered a robust underlying performance in 2003, despite a lack of significant improvement in the global business environment,” said David Cotterill, who recently succeeded retiring chairman Jim Mercer. “Given our strong financial position, during 2004 we aim to deliver both organic and acquisitive growth alongside our ongoing programme of returning surplus capital to shareholders,” he said.

Operating profits before goodwill amortisation and profit on disposals were GBP 33.2m for cellular polymers, with market growth in eastern Europe and the technical foams business. Extensive rationalisation in Germany is said to have strongly improved profitability there. In industrial polymers the headline profit was GBP 23.9m, as bolt-on acquisitions in the colour, thermoplastic sheet and elastomers sectors added to a growing presence in eastern Europe and Asia-Pacific.

• Plasteurope.com Service: British Vita annual report and accounts 2003: PIE-No. 46413.