June 29-British Polythene Industries (BPI) has given an update on its current trading ahead of the interim results for the six months to 30 June 2010, to be announced on 31 August.
Cameron McLatchie, BPI chairman, said: "We indicated in our AGM and interim management statement on 13 May that we expected that overall results for the first six months of the year would be broadly similar to last year.
"We further indicated that overall volumes were running at some 5% above the same period for 2009, but that margins had been squeezed by continuing increases in polymer prices. We also added the caveat that risks remained for the growing season and demand for silage films.
The company was affected by further polymer price increases in June and, as the relatively cool and dry weather continued, BPI saw less demand than normal for silage stretch wrap during the critical early summer period.
These factors have reduced our expectations on the half year results to a figure slightly lower than for the same period of 2009.
On 22 June we announced the disposal of the vacated site at Stockton for a cash consideration of 6m, resulting in a gain on sale of 3.5m, added McLatchie. The reduction in borrowings from this disposal will be more than offset by an increase in our working capital as a result of this year s polymer price increases.
Trading across the board continues to be challenging as we, and our customers, address the impact of these polymer price increases. Polymer prices have started to ease in North America and the Far East, but remain obstinately firm in Western Europe.
Cameron McLatchie, BPI chairman, said: "We indicated in our AGM and interim management statement on 13 May that we expected that overall results for the first six months of the year would be broadly similar to last year.
"We further indicated that overall volumes were running at some 5% above the same period for 2009, but that margins had been squeezed by continuing increases in polymer prices. We also added the caveat that risks remained for the growing season and demand for silage films.
The company was affected by further polymer price increases in June and, as the relatively cool and dry weather continued, BPI saw less demand than normal for silage stretch wrap during the critical early summer period.
These factors have reduced our expectations on the half year results to a figure slightly lower than for the same period of 2009.
On 22 June we announced the disposal of the vacated site at Stockton for a cash consideration of 6m, resulting in a gain on sale of 3.5m, added McLatchie. The reduction in borrowings from this disposal will be more than offset by an increase in our working capital as a result of this year s polymer price increases.
Trading across the board continues to be challenging as we, and our customers, address the impact of these polymer price increases. Polymer prices have started to ease in North America and the Far East, but remain obstinately firm in Western Europe.
