Pre-tax profits increased to 14.2m, a 7% increase from the previous year, while sales rose to 341m compared with 330m in 2002.

The results also showed that BPIs operating profit, after an exceptional operating cost, was 16.6m compared with 14.5m the previous year.

The exceptional write-down included an 800,000 cost for the closure of BPIs polythene damp proof source site at Witney.

Our business performed well in difficult conditions. In 2003 we completed the disposal of our last non-core business and strengthened our balance sheet, said BPI chairman Cameron McLatchie.

He added that increases in raw material prices would impact on the companys performance in the first half of 2004.

by Philip Chadwick