BPI warns that first-half profits will be lower than in 2003

BPI chairman Cameron McLatchie has underlined his warning that rising raw material prices are hitting the films group, which has been unable to recoup them fully in the market so far.

McLatchie told the group’s AGM in May of the difficulties that the price spiral was causing; his latest comments came in an update on BPI’s trading before it goes into its close season. He warned the cost pressures coupled with lower demand in some markets meant that first-half profits would be lower than in the same period last year.

BPI has indicated that its raw material costs have risen by about 20% as result of the rise in feedstock costs; in addition, LDPE supplies are tight in the market at present, it is reported. Shares in the group were marked down by 7.5p or just over 2.5% following McLatchie’s statement.