Converting

British Polythene Industries, the UK-based manufacturer of polythene film and bags, has said its pre-tax profit for the first quarter of 2008 was "somewhat below" the same period last year.

In an interim management statement published today (8 May), it said: "Improved volumes were not matched by bottom line results, as we have continued to be affected by the lag in passing on raw material cost increases and also by substantial increases in the costs of energy.

"Demand for certain products, particularly in construction and manufacturing, has been lower in the first quarter, but this has been more than compensated for by increased demand for other products, particularly silage stretchwrap where we are having a successful early season."

It said raw material costs had stopped rising in mainland Western Europe, but its UK plants have had to accept increases as Sterling continued to weaken against the Euro.

The company's share price fell 8.5p to 238.5p following the announcement.

Last week, BPI announced it was consulting with employees over the future of its site in Buckhurst Hill, Essex. The company wants to close the small, unprofitable facility and move the business to two other sites in Flint and Cowdenbeath.