BPI rides price pressures with improved performance

British Polythene Industries has said its trading performance since January was similar to the same period last year despite challenges in raw material prices.

In its interim management statement, the company said its results to date are broadly equivalent to 2011.

The firm said that it had faced raw material prices increases for March and “that these were being reluctantly accepted by the market”.

It added: “Once again, European raw material prices have moved well ahead of the Far East, making imports of all plastic products more attractive from that source.”

Elsewhere, BPI said that demand in the industrial and construction sectors remained subdued and overall volumes have been down on 2011.

Robust sales

The firm added: “Sales to the agricultural sector have been robust, and our concerns on less favourable growing conditions, due to less precipitation than in 2011, currently look misplaced.”

BPI added: “These results show an improvement in the performance of the UK business and the continued success of the European business.

“The European results are being translated at a less favourable exchange rate than last year, but our overall borrowings are being flattered by the quantum denominated in that currency. This is a good outcome, achieved in a difficult period, where we have seen significant raw material increases and poor volumes from certain sectors and a lower contribution in sterling from Europe.

“The UK performance vindicates the tough decisions that have had to be taken over the last few years to re-align capacity with demand and close under-performing operations.”