BPI reported a pre-tax loss of 24.6m in the year to 31 December 2000 and is preparing for the impact of foot-and-mouth disease on its silage stretchwrap business.


The pre-tax loss, which compares to a profit of 19.3m in 1999, was attributed to adverse trading, restructuring costs and the 5m cost involved in fending off Macfarlanes hostile takeover bid.


"The [Macfarlane] bid came when we were in the midst of a restructuring programme," said BPI chief executive Cameron McLatchie.


Restructuring cost 10m and by the end of this year, the companys headcount will be reduced by 1,000.


BPI announced on Mon-day (26 March) the closure of sites in Birmingham and Irvine, Ayreshire. In the past year BPIs ownership of 50 companies has been reduced to just eight.


Macfarlane chief executive Iain Duffin said: "We were pleased to see that BPI maintained the dividend [a total of 21p for the year] but still couldnt see how they would deliver more than 310p per share to their shareholders".


McLatchie said BPI had restructured the business to deliver earnings but could not have predicted the disease, which is affecting its sales into the agricultural sector, which usually materialise in the second quarter.


"Were on target, but for the next few months we have the spectre of the foot-and-mouth over us it was unforeseen and I didnt bring it into the country".


Turnover fell to 434.6m from 451.8m in 1999.


Story by Jeremy Allen