Speaking to Packaging News, BPI chief executive John Langlands said that the results were in line with the firm’s expectations.  He said that raw material prices had increased significantly in the past few months and continues to rise now.

He added: “It was a good result in a difficult year.  The main issue for us was the increase in raw material prices that had increased by 25% in the last year, by £45m. However, our operating profits reduced by a £1.1m.

“We have taken actions in the last two or three years to make sure we are in a better position to weather the current economic climate.”

Langlands explained that the greatest challenge of this year will be to recover the raw material costs from its customers.

In 2010 BPI invested in its Ardeer flexible plastics facility after it closed its Stockton site. In January 2011, it started production of co-extruded stretch film for agricultural applications at its AT Films plant in Canada.

“We are confident that the actions that have been taken over the last few years have put our business 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.”