27 May 2011 – agm statement

At the company’s AGM today it has been announced that sales in the first quarter of 2011 were strong but increased polymer prices mean that profits in the first half of the year will be below previous management expectations.

The integration of manufacturing operations is almost complete and cost benefits are starting to come through.  New blow moulding facilities commissioned in February will be further expanded during the summer as demand remains ahead of the in-house supply capacity.  Steps have been taken to reduce contract risk to volatile raw material prices and margins in the second half are forecast to improve to previously expected levels.  We are somewhat surprised that this statement has been well received but remain upbeat about the company’s long term prospects meaning that we keep our BUY rating.