BPI progresses but raw material costs bite

Despite increases in raw material costs of some £45 million, operating profits were "only" £1.1 million less than 2009. After a lengthy run-down, the company's Stockton site was closed and sold with capacity having been moved, over an 18 month period, to other UK sites, principally Ardeer and Greenock. This involved the construction of two new extrusion halls at Ardeer. BPI said that after some initial teething issues, the product from both plants was now of similar or better quality than previously offered, and it had successfully retained the vast majority of the customers. In October, a few months later than anticipated, BPI began commissioning the new 5-layer wide-film line at Ardeer and said it had "produced excellent product, although we have had a number of technical issues resulting in operational outages during the first few months". In April, the firm's film extrusion plant at Brampton – where it said the low roof height and out-dated equipment was making it difficult to remain competitive – was closed with capacity being increased at its Bromborough site where existing extrusion equipment is being refurbished to improve quality and output. During the year, sales increased 12.5% to £478m (2009: £425m), operating profit was £17.9 million (2009: £19.0m and pre-tax profit was up to £16.7m (2009: £11.8m) Commenting on the results chairman Cameron McLatchie said he was encouraged by a very satisfactory performance in difficult circumstances and was confident that the business was now in a better position to weather the current economic climate and also to be able to take advantage of any upturn in the economy. "2011 will not be easy, but we have made a good start," he concluded.