Ongoing Confidence
An AGM statement from British Polythene Industries (LONDON:BRPI) highlighted some y-o-y volume growth year to date and ongoing confidence across all three reporting regions even with recent polymer price increases. Investment has provided this platform through increased capacity and new products and remains the template for future progress. This steady, self-generated growth profile has an undemanding rating with a P/E just below 10x and EV/EBITDA below 6x.
Good start in agricultural film segment
In the first four months of FY15, group volumes are reported to be ahead of the prior year, though this was not quantified. Increased production in Europe (in agricultural stretch film) and North America (new equipment bedded in) will have been primary drivers. Relatively low levels of distributor stocks at the start of the year and the seasonally earlier start in Europe will both have contributed to good demand in the agriculture segment and the more technical silage stretchwrap products should enhance the margin mix. We would expect other sector volumes (eg construction, food and retail) to have been flat or possibly slightly lower overall.
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