BPB expects higher turnover

Plasterboard supplier BPB expects to deliver a 12% boost in turnover in the year to 31 March. In a trading statement released to the City this morning, BPB chief executive Richard Cousins outlined the group's expectations.

Underlying pre-tax profit, before goodwill and exceptional items, is up 15% to around £220m. Underlying operating profit is up 12% to more than £245m, after group restructuring and redundancy costs of £20m. Most of this cost relates to the integration of Gyproc Benelux.

Plasterboard volumes have increased by 11%, but on a like-for-like basis the figure is lower at 6%. Cousins said improvements in average selling prices across Europe are likely to have offset the impact of cost inflation, "particularly freight and energy costs".

The UK paper mill at Purfleet closed as planned in December last year. The pre-tax net exceptional charge from this is estimated to be around £20m after allowing for future site disposal proceeds.

BPB will reveal its full year results on 20 May.