News

British Polythene Industries (BPI) has blasted the UK's energy policy after "record costs and a dramatic drop in demand in the construction sector" reduced its pre-tax profit by two-thirds in 2008.

In a trading statement released today, the company reported that its group sales rose in 2008 by 13% to £480m, while its pre-tax profit fell to £3.9m, down 66% on 2007.

It said energy costs in 2008 had been the "highest we've ever experienced" and the UK had been "devoid of a coherent energy policy for a number of years".

"Unless we can detect some sign that energy costs in the UK are going to align with those in our other manufacturing locations, we will find it difficult to invest in capacity in a country with energy costs so much higher than the rest of the world," BPI added.

The company's film segment reported 28% sales while converted product sales grew by 8% compared with the previous 12 months.

BPI said that it "anticipated a year of progress" in 2009 after its restructuring the business to eliminate excess capacity and reduce costs as well as invest in growing markets.

Chairman Cameron McLatchie said "much was achieved" despite the difficult business conditions in 2008 and the firm could "take comfort form the resilient nature of the majority of our business where volumes have been unaffected".

Nonethess, he added: "There is no doubt that this year will be very challenging."

In 2008, BPI announced the closure of two plants, in Buckhurst Hill, Essex, and Stockton on Tees resulting in 210 job losses.