Ahead of the Interim Results for the six months to 30 June 2012, to be announced on 28 August 2012, British Polythene Industries PLC is providing an update on current trading.
We indicated at the time of our AGM on 11 May that we anticipated that the first half would produce a result, at the operating level, broadly similar to 2011, and our unaudited results to the end of May confirm this position.
As indicated, demand from the industrial and construction sectors remains subdued, and we can confirm that volumes from these sectors continue to weaken. Overall volume from the retail and service sectors has been flat, with steady demand and a number of customer and product gains offset by the continued trend towards thinner films.
We currently expect an overall reduction in first half volumes, despite another year of growth in sales of silage stretchwrap. Another damp summer, both in the UK and mainland Europe, should ensure that the silage season continues well into July.
As we signalled earlier in the year, we anticipated that April was likely to have been the peak of the European polymer price, and since then we have seen an easing in polymer prices. It is difficult to predict how long this trend will continue, but the current drop in feedstock costs for polymer producers may herald some longer term relief from the very high polymer costs which have impacted on margins, with particular severity in the retail sector.
Cameron McLatchie, Chairman British Polythene Industries PLC 01475 501000
John Langlands, Chief Executive British Polythene Industries PLC 01475 501000
Charlie Palmer/Clare Thomas FTI Consulting 0207 831 3113