March 1 (prw) -- British Polythene Industries (BPI) has reported a 200% jump in pre-tax profits for 2009 - GBP11.8m, up from GBP3.9m in 2008. The results are partly due to cost reductions and a restructuring that saw the closure of its Stockton operation.
Commenting on the results Cameron McLatchie, chairman of BPI, said: ⌠2009 produced a good outturn for the group, despite conditions remaining as challenging as 2008, with volatile input costs and reduced demand from certain sectors, particularly those dependent on activity in the construction industry.
⌠It would be imprudent not to have a sense of caution when looking at the potential outcome for 2010, but, at the same time, we are confident that the group continues to take steps to produce the best results we can in what remains a very challenging market.
⌠The previously reported decisive actions taken to reduce excess capacity in the industrial part of our UK business have resulted in a reduction in losses from these activities, added McLatchie. ⌠Combined with a continuing steady performance from the resilient agricultural and retail food sectors and reduced UK energy costs, we have, as previously indicated, produced results considerably ahead of 2008.
⌠We expect a continuing good performance in 2010, but economic and business risks remain.
According to the company, it generated ⌠pleasing levels of cash in 2009 and was successful in reducing debt. Operating cash flow from trading amounted to GBP27.6m and improvements in working capital generated a further GBP15.1m.