Pretax profits increased 26% to GBP 9.1m at PE film manufacturer British Polythene Industries (BPI, Greenock, Scotland / UK; www.bpipoly.com) in the six months to 30 June 2009. Turnover was down 13% at GBP 231.4m (about EUR 270m), reflecting reduced volumes and lower raw material prices, but operating profits before restructuring costs of GBP 2m surged by almost 50% to GBP 13.7m. Chairman Cameron McLatchie called it a satisfactory outcome during a period of major restructuring that has seen the closure of a small factory in Cowdenbeath and commencement of the run-down of the much larger site at Stockton.

Volumes were down 17% in the UK & Ireland to 109,200 t, but the operating profit before restructuring costs was doubled to GBP 7.8m. Sales to the construction sector fell by more than 25%, although demand from builders merchants improved in the second quarter and the company hopes that the bottom of the market has been reached. Also, the “Wrapsmartultra” range of stretch wrap films is continuing to gain customers.

Mainland Europe saw an 8% decline in volumes to 36,900 t, although the operating profit before restructuring costs improved from GBP 4.8m to GBP 5.6m. The silage market proved particularly difficult.

McLatchie remains cautious on future prospects, but expects the full-year results to be ahead of 2008, especially as July proved to be a much better month than in the previous year. Capital expenditure for 2009 will include the construction of two new extrusion halls at the Ardeer / Scotland plant for the transfer of film lines from Stockton and the installation of a new line for wide agricultural and horticultural films.

e-Service:
BPI results presentation for H1 2009 as a PDF document (186 KB)