A record high in the price of polymers is likely to have a major impact on the performance of British Polythene Industries (BPI).

The company, which employs about 350 staff at Visqueen, in Stockton, released interim results in line with market expectations this week.

However, the company said prices for polymers - the core raw material in its production process - would affect its full-year performance, which it predicted would be significantly down on the previous year.

BPI makes polythene sacks and packaging materials for a range of sectors.

Last year, BPI closed two manufacturing facilities in Dublin and Rochdale, costing the group £2.1m. It also closed two sales sites in Newcastle and Glasgow.

In the latest results the Scottish group's share price fell 10p to 275p. In the year to June 30, sales from continuing operations were £189m compared with £188m last year.

Pre-tax profit was £7.1m, against £6.1m last year after net exceptional charges of £2.2m.