British Polythene Industries has posted a 200% increase in pre-tax profit for 2009 on the back of cost reductions and a restructuring of its operations.

BPI said it had benefited from capacity reduction through the winding down of its Stockton facility and more stability in short-term energy costs. Pre-tax profit rose by 202% to £11.2m as turnover fell by 11% to £424.7m.

Volatile input costs and reduced demand, particularly from the construction industry, continued to create "challenging conditions", BPI said in a trading statement this morning.

Chairman Cameron McLatchie said: "It would be imprudent not to have a sense of caution when looking at the potential outcome for 2010, but we are confident that the group continues to take steps to produce the best results in what remains a very challenging market."

BPI said the movement of more than 30,000 tonnes of capacity from Stockton to other sites had been the biggest structural change at the firm over the course of the year. BPI announced the closure of the Stockton site in 2008.

As part of the restructuring BPI is investing £4.5m in a new industrial film production line for its Ardeer facility as a replacement for the Stockton one.

The firm is also in the process of closing its Cumbrian films facility in Brampton, which was announced in January and is set to take place next month.

BPI's UK and Ireland businesses reported that sales had fallen by13% to £303m and operational and recorded an operational profit of £10.2m compared to a £900,000 loss in 2008.

BPI 2009 RESULTS

Turnover £424.7m (£480.7m in 2008)
Profit from operations £15.9m (£7.2m)
Pre-tax profit £11.8m (£3.9m)