BPB boosts operating profit by 10%

Plasterboard manufacturer BPB produced a 10% boost in operating profit to £112m in the six months to 30 September. Turnover was up 14% to just shy of £1.1bn.

Pre-tax profit stood at £95m, representing a return to the level the firm would have expected a year ago had it not been for the £88.8m fine levied by the European Commission for operating a plasterboard cartel between 1992 and 1998.

BPB paid the fine in full despite denying the charge. Its appeal is not expected to be heard before spring 2005.

Highlights in the half included 12% like-for-like growth in plasterboard sales volumes to more than 550 million square metres, marginally better selling prices in core European markets, and investment in new IT business systsems, which will roll out in the UK first.

Chief executive Richard Cousins said the paper mill at Purfleet will close by the end of the year. Closure costs are expected to lead to a £20m exceptional charge.