HIGHLIGHTS		2005	2004	% increase
Turnover	£m	2,316.8	2,170.8	6.7
Underlying profit before tax *	£m	287.5	222.8	29.0
Reported profit before tax	£m	258.7	180.3	43.5
Underlying earnings per share *	p	39.1	30.5	28.2
Reported earnings per share	p	36.7	23.4	56.8
Final dividend per share	p	10.75	9.45	13.8
Total dividends per share	p	16.00	14.25	12.3
* before goodwill amortisation and exceptional items

• Record results from further good growth in global plasterboard demand, increased building plaster volumes, and improved selling prices


• Underlying operating profit up 24% to £308.1 million, as sales and profits advanced in all three regions



• European profit up 12% to £217.6 million, benefiting from strong plasterboard volume growth in the British Isles, Spain and Eastern Europe


• North American profit up 78% to £71.4 million, with strong residential and renovation markets sustaining a significant increase in average wallboard selling prices


• Emerging Markets profit up 26% to £19.1 million, driven by strong plasterboard demand in South Africa and good Asian growth


• Underlying profit before tax up 29% to £287.5 million. Reported PBT up 43.5%, reflecting improved results and a lower net exceptional charge of £12.5 million (2004 £24.5 million)


• Operating cash flow up £66.1 million to £416.6 million and year-end net debt down £73.0 million to £422.0 million


• Post-tax return on average capital invested increased to 12.7% (2004 9.9%)


• Final dividend up 13.8% to 10.75p, giving a total dividend up 12.3% at 16.0p per share


• High plant utilisations in most of the US, Asia and in parts of Europe - BPB’s capacity expansion programme underway with capital expenditure up more than 50% to £154.1 million

Richard Cousins, BPB chief executive, commenting on the year’s results said:


“Against the background of growing demand in key markets and tremendous worldwide potential for BPB’s core products, we continue to focus on growing the group profitably through the development of our global leadership in plasterboard and building plasters. This sharpened strategy, introduced in 2003/04, resulted in the delivery of a further strong full year performance”.


GROUP RESULTS OVERVIEW


Management continued to focus on growing the group profitably through the development of BPB’s global leadership in plasterboard and building plasters. This sharpened strategy, introduced in 2003/04, resulted in the delivery of a broadly-based performance improvement across all three major regions lifting group underlying pre-tax profit (before goodwill and exceptional items) by 29% to £287.5 million.


Reported profit before tax was 43.5% higher at £258.7 million, reflecting the improved underlying results and a £12.0 million reduction in the net exceptional charge to £12.5 million. Underlying earnings per share rose by 28% to 39.1p and the company’s post-tax return on average capital invested increased from 9.9% to 12.7%, substantially above BPB’s weighted average cost of capital.


Group turnover increased by 6.7% to £2,317 million (up 10% in local currency terms), driven by further good growth in global plasterboard demand, substantially increased overall sales of building plasters, and improved selling prices, as relatively low interest rates in the group’s principal markets supported buoyant construction activity, particularly in the residential and renovation sectors. Underlying operating profit increased 24% to £308.1 million, with adverse currency translation of over £6 million mainly offset by lower restructuring and redundancy costs of £15.3 million, some £4.9 million less than in 2004. The benefit of better trading performances and improved operating efficiencies across BPB’s businesses exceeded the impact of significant cost inflation, resulting in the group’s return on sales improving from 11.5% to 13.3%.


Sales of plasterboard and accessories increased almost 10% to £1,518 million, representing around two-thirds of group turnover, with overall plasterboard volumes growing by almost 5% to 1.2 billion square metres. European volumes advanced by more than 6% to 600 million square metres, with strong growth in the British Isles, Spain and Eastern Europe and slightly higher sales in the French market. Nordic volumes began to recover after several years of weak demand and, although construction activity in Germany remained subdued, BPB’s restructured business achieved a modest improvement in sales volumes. North American wallboard sales of 520 million square metres continued to be underpinned by strong residential and renovation markets in the US and Canada, with volume growth of just under 3% restricted by capacity constraints, particularly in the second-half. Volumes in the Emerging Markets advanced over 9% to 90 million square metres driven by strong growth in South Africa and substantial Asian demand, which continued to grow at double-digit rates in Thailand, China and India.


Overall plaster volumes (comprising building, industrial and specialist plaster sales) increased by over 6% to 5.8 million tonnes, with turnover increasing 6% to £367 million (16% of group turnover). Building plaster sales also increased by over 6% to 4.8 million tonnes, driven by growth in Spain, Italy and the British Isles (which more than offset a further contraction in French demand) and by increased sales in the developing markets of Egypt and Turkey. Growth in Spain, BPB’s largest building plasters market and representing over 25% of group volumes, reflected further progress with sales mix enrichment as traditional plasters continued to be replaced with higher margin lightweight plasters. In the Emerging Markets, sales in Egypt were boosted by further market share gains and encouraging growth was achieved in the developing plaster businesses of South Africa, Thailand, India and Mexico.


Turnover from other building products decreased by 3% to £432 million, with the reduction in paperboard operations offsetting growth in BPB’s Iberian distribution business, which increased its turnover by 9% to over £70 million. Following the likely closure this year of the group’s remaining paper mill (located at Aberdeen in the UK), which will mark BPB’s strategic exit from the in-house manufacture of paperboard, BPB’s other building products segment will mainly comprise European insulation and fixings, textured finishes, Iberian distribution, and the ceiling tile businesses in North America and Europe.


Goodwill and exceptional items included within the group’s reported profit before tax were:

• an operating exceptional charge of £34.0 million arising from the likely closure of the paperboard mill at Aberdeen in the UK in July. The charge comprises £24.0 million relating to redundancy, plant de-commissioning and other site closure costs and a £10 million write-down of the paper machine and related equipment


• an operating exceptional pre-tax gain of £14.6 million arising from the company’s share of BPB Canada’s pension fund surplus distribution, made following regulatory approval of an agreement between the company and the pension scheme members


• non-operating exceptional profit of £6.9 million, arising principally from the sale of surplus land in the UK and Belgium


• amortisation of goodwill of £16.3 million (2004 £18.0 million)

The average annual rate of cost inflation on the total group cost base rose to 4%, double the previous year’s level, adding nearly £75 million to costs in 2004/05. The major variable cost increases were in energy and freight, driven by higher oil and natural gas prices, with costs for labour, steel, expanded polystyrene beads and US paperboard liner also increasing.


Group-wide operating cost savings of over £25 million exceeded management’s on-going annual target of 1% of turnover, reflecting the full year benefits of lower plasterboard liner costs in continental Europe and the restructuring of the US ceiling tiles and German businesses, together with further efficiencies arising from the integration of Gyproc Benelux. Most of these savings were re-invested in additional functional and systems resources to ensure the delivery of BPB’s growth objectives and medium-term capital expansion programme.


Key operational efficiency initiatives during the year, which will deliver further cost savings in 2005/06, included:

• further reducing the group’s plasterboard liner costs in Europe by sourcing substantial quantities from the St Regis paper division of DS Smith, complementing last year’s successful sourcing of increased liner volumes from the group’s German associate, Tecnokarton




• restructuring the French and Belgian sales operations, the closure of the gypsum block plant at Grozon, and the planned closure of the plasters plant at Wijnegem with the transfer of production to Vaujours




• progression of the group’s world class manufacturing, purchasing and supply chain initiatives, with a broader application of best practice standards relating to safety, customer service, product quality, operating efficiency and capacity utilisation

BPB strengthened its financial position - a key component for the successful execution of management’s capacity expansion strategy in growth markets - with further strong cash generation from operations funding capital expenditure of £154.1 million (2004 £99.6 million), facilitating the purchase of minority interests in Asia (£36.8 million), and reducing balance sheet net debt by £73.0 million to £422.0 million. Interest cover on underlying operating profit improved from 8.1 to 11.3 times.


Shareholders’ funds increased by £141.4 million to £936.3 million, with retained profit after tax benefiting from BPB’s improvement in profitability; the return on average shareholders’ funds increased by 2.7 percentage points to 16.2%.


In recognition of the positive results for the year, and following last November’s interim dividend increase of 9.4% to 5.25p per share, the Board is recommending for shareholder approval a 13.8% increase in the final dividend to 10.75p per share, resulting in the company’s annual dividend increasing 12.3% to 16.0p (2004 5.2% increase) and yet still enabling dividend cover to improve from 2.1 to 2.4 times underlying earnings.


BUSINESS GROWTH STRATEGY


Against the background of growing demand in key markets and tremendous worldwide potential for BPB’s core products, management actions have kept to a clear business plan for future growth, targeting:

• profitable sales growth, by investing capital and resource in strengthening BPB’s global sector leadership in plasterboard and building plasters


• continuous cost reduction, by improving operating efficiencies and spreading repeatable best practices


• development of BPB’s people, by empowering business teams within a simple framework of key group policies and change initiatives

BPB is now progressing the next stage of its drive for profitable sector growth as, after several years of increasing global demand, plasterboard capacity utilisation rates have risen to an average of above 90% and the group is approaching capacity constraint positions in most of the US, Asia and in parts of Europe. Using the group’s strong cash generation, management plan to increase the annual capital investment spend during the next few years to more than two times depreciation. Based on projects approved to-date, by late 2008 this will have added around 20% to the group’s existing plasterboard capacity, with new and upgraded plants operational in the eastern US (where BPB is currently under-represented), the British Isles, Spain, Romania, Thailand, India and Malaysia. The group’s core building plasters business will also see growth-related investments coming on-stream in the UK, France, Spain, Mexico and India.


REGIONAL OPERATING REVIEWS


EUROPE


Turnover £1.71 billion (up almost 4%); underlying operating profit of £217.6 million (up over 12%)


European underlying operating profit increased by 12.2% to £217.6 million, benefiting from continuing strong demand and high plant utilisation levels, the recovery of substantial cost inflation through selling price increases, and efficiency improvements arising mainly from last year’s restructuring actions and sourcing of lower cost paperboard liner. Turnover growth of almost 4% to £1,707.8 million was impacted by the closure of various non-core paperboard businesses, together with adverse foreign currency translation as Sterling strengthened against the Euro. Plasterboard volumes advanced by 6.1% driven by good growth in the British Isles, Spain and Eastern Europe, and continued high levels of demand in France. Building plaster volumes grew by almost 4% to 4.2 million tonnes with strong demand experienced in the British Isles, Spain and Italy. The benefit of lower restructuring charges was more than offset by a £6 million increase in UK pensions costs, adverse foreign exchange translation, and development costs for a new European business information system. Regional return on sales increased from 11.8% to 12.7%.


North & Western Europe


Turnover £596.1 million (broadly unchanged); underlying operating profit £108.3 million (up 3.0%)


Continued strong growth in demand in the British Isles and increased trading activity in the Nordic area more than offset a higher UK pension charge, systems development costs and lower profits from paperboard operations, resulting in regional underlying operating profit advancing by 3% to £108.3 million. Following the partial exit from paperboard manufacturing activities, turnover was broadly unchanged at £596.1 million, although the increased focus on core plasterboard and plaster businesses improved return on sales by 0.3 of a percentage point to 18.2%.


UK sales volumes grew strongly, driven by a good housing market, further public sector investment in schools, hospitals and housing and an active renovation sector. Substantial cost inflation pressures during the year were offset by increased selling prices, with results also benefiting from improved plant efficiencies and lower freight costs. Imports from BPB’s Belgian business were substantially reduced following the upgrade of the East Leake plant in early 2004. The UK market continues to benefit from changes in building regulations which require greater levels of insulation and sound-proofing performance. Sales mix enrichment continues, with higher performance boards now accounting for around one-third of total plasterboard sales. To meet the continuing strong demand for core products, BPB is progressing plans to construct a new medium-sized plasterboard plant at Sherburn (near Leeds) to be commissioned in early 2007, and additional plaster capacity was recently introduced at Kirkby Thore, with further capacity planned to come on-stream at East Leake in 2007.


Following the previous year’s closure of the Purfleet paperboard mill there was insufficient demand to support the UK recovered paper operation and consequently the business was sold in August. In March 2005, the group entered into a substantial long-term agreement to source lower-cost, lighter grammage plasterboard liner from DS Smith plc in the UK, complementing the liner agreement entered into with the group’s German associate, Tecnokarton, in 2004. As a consequence, BPB’s remaining paper mill located at Aberdeen is likely to be closed in July.


Building plaster and plasterboard sales again grew strongly in Ireland as construction activity remained buoyant, particularly in housing. Additional capacity was commissioned in January at the Kingscourt plant and, during the plant upgrade, plasterboard was imported from group companies resulting in additional freight costs.


Greater plasterboard sales in the Nordic area, driven by a more active housing sector, combined with cost efficiencies to offset inflationary pressures and deliver an improved overall performance. Denmark achieved a further good performance, supported by increased construction activity, with Sweden benefiting from cost efficiencies following a plant upgrade and improved sales. Strong volume growth was achieved in Finland but exports to Russia were again restricted by the relative strength of the Euro, and BPB’s Norwegian profitability stabilised after a period of severe price competition.


Southern Europe


Turnover £760.8 million (up over 4%); underlying operating profit £84.1 million (up over 10%)


Better results in France, good growth in Spain and Italy, improved regional operating efficiencies and selling prices, and lower restructuring costs in Belgium led to profitability rising by over 10% to £84.1 million, despite significant commodity cost inflation, on regional turnover up by almost 4.5% to £760.8 million. Regional return on sales increased to 11.1% (2004 10.5%).


France experienced modest growth in overall plasterboard volumes albeit at a high level of activity, with local construction activity remaining buoyant, particularly in the residential sector. Profitability improved through a combination of increased demand for performance boards and added-value lightweight plasters, together with selling price increases which offset considerable cost inflation (particularly for energy, steel, and expanded polystyrene beads); cost savings also contributed, driven by the sourcing of lower-cost plasterboard liner and improved plant performances at Chambery and Cognac. The Gyproc and Placo sales functions were integrated and simplified to focus on the development of the market leading Placo brand. The increasing penetration of plasterboard systems in the building sector has contributed to some erosion in demand for gypsum blocks, resulting in the impending closure of the plant at Grozon. Domestic building plaster volumes declined slightly, although at a less rapid rate than in recent years, as demand for value-added lightweight plasters increased and plaster production was transferred from the now redundant Wijnegem site in Belgium to the recently upgraded Vaujours facility near Paris.


The Spanish construction market continued to grow strongly, and the Portuguese market began to recover from last year’s recession. Growth in overall plaster volumes was accompanied by the commencement of the second phase of a substantial investment programme in lightweight plaster capacity to meet increasingly strong demand and enrich the product mix. Plasterboard volumes grew rapidly as penetration of the commercial construction market continued, assisted by increasing use of plasterboard systems in the new housing sector. To meet expected medium-term sales growth, a new 26 million square metre capacity plant is to be constructed near Madrid, with commissioning anticipated in late 2006 to support the existing plant at Quinto. BPB’s Iberian distribution business experienced good sales growth, enhancing the group’s ability to progress the development of the Iberian plasterboard systems market.


BPB’s Italian business also delivered increased profitability as plasterboard penetration of the growing residential sector continued, offsetting a weak commercial market. Further strong growth in plaster volumes was achieved, supported by additional investments.



Profitability in the Netherlands was affected by continuing strong competition, with margins affected as cost savings were insufficient to offset cost inflation. However, a better performance in a relatively flat Belgian market was mainly due to a lower restructuring charge and the commencement of cost savings following the upgrade of the Kallo plasterboard plant.


Central & Eastern Europe


Turnover £350.9 million (up over 6%); underlying operating profit £25.2 million (doubled)


Significantly improved German profitability (particularly in the second-half), further sales volume growth in Eastern Europe and lower restructuring costs drove a doubling of regional operating profit to £25.2 million, on turnover up more than 6% to £350.9 million. Return on sales increased by over three percentage points to 7.2%.


German plasterboard volumes grew moderately, against the background of a depressed but stable domestic construction market, benefiting from exports to capacity-constrained markets. Plant utilisation and efficiency levels increased and an improvement in average selling prices towards the end of the year compensated for significantly higher energy, haulage and raw material costs. Results also reflected the delivery of €10 million of annualised cost savings targeted during the restructuring programme last year. Elsewhere in Central Europe, sales of plasterboard and gypsum blocks increased in Switzerland, and Austria achieved good plasterboard volume growth in both its domestic market and from exports to the Balkans.


Further good penetration of plasterboard in Eastern Europe’s developing commercial and residential sectors, together with high levels of construction activity in most countries, resulted in continued double-digit volume growth. Better prices and increased volumes were achieved in Poland (BPB’s largest plasterboard market in Eastern Europe) despite a declining construction market, while the group’s businesses in the Czech Republic, Hungary and Romania all delivered strong growth in sales volumes. The construction of a new plasterboard plant near to the group’s existing plaster plant in Romania is progressing towards commissioning in late 2005. Sales of plasterboard in the Ukraine continued to grow strongly, driven by demand from the commercial and renovation sectors. Building plaster sales also grew encouragingly, with good progress in the developing Romanian market, and strong demand in Turkey benefiting from a relatively mild Winter. Over the medium term, it is expected that the recent enlargement of the European Community will contribute to the growing demand in Eastern Europe for plasterboard systems, building plasters and ceiling tiles.


NORTH AMERICA


Turnover £532.1 million (up almost 9%); underlying operating profit £71.4 million (up 78%)


Record US wallboard demand, combined with higher industry plant utilisation levels, sustained a significant increase in BPB’s average wallboard prices, resulting in a 78% increase in North American underlying operating profit to £71.4 million. Despite further substantial commodity cost inflation, the restructuring of the group’s Las Vegas mining activities, second-half patent protection costs, and adverse currency translation, regional return on sales advanced 5.2 percentage points to 13.4% on turnover up almost 9% to £532.1 million.


Buoyant activity across the new housing and renovation sectors led to a further substantial increase in North America’s wallboard market, although BPB’s first-half volume growth of 5% was restricted to an annualised rate of nearly 3% due to lack of capacity in the major eastern markets. To strengthen the group’s representation in the east, BPB announced in March the completion of a long-term agreement with American Electric Power for the supply of desulphogypsum to a new 700 million square feet capacity plant to be located near Mitchell in West Virginia. This planned $100 million investment complements the agreement made last year with Progress Energy to supply desulphogypsum to a new $100 million wallboard plant alongside their coal-fired generator at Roxboro in North Carolina. The new Mitchell-sourced plant will be commissioned in the second half of 2007, with the Roxboro plant expected to come on-stream in late 2008.


BPB’s average realised US wallboard prices increased to $117 per 1,000 square feet (some $23 up on the average for the prior year) with most of the price increases being realised in the first half. A further headline price increase of 10% was announced at the end of April and since the year-end prices have averaged around $125.


Market acceptance of GlasRoc, an added value high-performance exterior sheathing product launched in early 2004, grew rapidly during the year. This successful glass-reinforced gypsum wallboard became the subject of patent claims, originated by Georgia Pacific, which both parties recently agreed to dismiss. Demand continued to grow for BPB’s high quality ProFin wallboard finishing products and work began on the construction of a new manufacturing facility near Toronto. The new highly automated plant, due for commissioning in the Autumn of 2005, will improve product quality, customer service levels and operating efficiency in the Ontario region and provide the market with a full range of jointing compounds and setting powders.


The US ceiling tiles business experienced further weak demand in the commercial sector. However, efficiency savings arising from restructuring actions taken in the previous year and better selling prices offset the impact of cost inflation, contributing to a near break-even performance. A modest recovery in commercial activity is anticipated for the current year and management continues to focus on strengthening operating efficiency and building a higher-margin sales mix.


Construction activity in Canada remained strong, with BPB plants operating at near capacity levels as the domestic wallboard market grew by 2% to a record level of approximately 3.2 billion square feet. Export volumes grew by 20% as Canadian plants supplemented constrained US manufacturing capacity particularly in the north east. Higher selling prices were sustained and this, combined with manufacturing efficiencies, offset cost inflation pressures (notably energy, freight and paperboard liner) enabling the business to deliver a substantial improvement in results.


EMERGING MARKETS (previously classified as Rest of the World)


Turnover £126.4 million (up over 16%); underlying operating profit £19.1 million (up over 25%)


Excellent progress was achieved in the profitable development of BPB’s Emerging Markets businesses, with underlying operating profit of £19.1 million advancing by over 25%, driven by a strong performance from a buoyant South African market, improved South American results and further good volume growth in Asia. Overall return on sales again improved, increasing from 14.0% to 15.1%, on plasterboard volume growth of almost 10% and turnover up more than 16% to £126.4 million. Together, BPB’s South African and Asian businesses contributed over 80% of regional profit.


Double-digit sales volume growth was achieved by BPB’s Asian plasterboard producers although export volumes were restricted by capacity constraints. Capital investment plans were successfully progressed during the year, the aim being to meet growing demand for plasterboard and building plasters in selected developing markets. In addition BPB spent £36.8 million to acquire substantially all the minority interests in its fast-growing businesses in Thailand and India where the group has established strong market positions.


Further good plasterboard volume growth was achieved in South Africa and, with better selling prices offsetting higher input costs, led to a good improvement in results. Strong growth in new residential and renovation activity, and increased commercial demand, were underpinned by a stable currency, lower interest rates and a continuing low rate of inflation. Economic forecasts point to continuing strong growth in building sector activity during the current year, particularly in housing. Other factors influencing demand during the year were the imposition of anti-dumping duties on Indonesian importers and the government’s promotion of energy efficient low-income housing, an area of future opportunity for BPB’s Gyproc and Rhino systems. Sales of building plasters, albeit developing from a low base, continued to be encouraging.


Substantially increased sales of building plasters and better selling prices resulted in a significantly improved performance in Egypt. Industry competition in the current year is expected to intensify.


Strong growth in plasterboard volumes continued in Thailand, attracting more intense competition which resulted in reduced profitability as market share was maintained. Substantial additional capacity will come on-stream with the group’s new plant at Laem Chabang later this year, significantly improving BPB’s domestic and export operating cost platform.


New plasterboard capacity near Kuala Lumpur will be commissioned in early 2006, to support growing demand in the Malaysian peninsula and increase BPB’s market representation.


BPB’s developing Chinese business reported a maiden profit, driven by strong plasterboard sales growth, improved manufacturing efficiencies and stable selling prices. This result was achieved against the background of continuing substantial growth in construction activity and further market consolidation. The increasing availability of low-cost desulphogypsum close to major markets in eastern China will further improve industry operating efficiencies.


Substantial volume growth of plasterboard and building plasters was achieved in India, due to further market penetration and continued buoyant commercial construction activity. This led to a significant performance improvement despite increased competition from plasterboard imports. While the impact on construction activity levels in the current year arising from government changes to the sales tax regime is uncertain, BPB anticipates further strong growth in sales volumes and plans to bring on-stream in late 2005 a new combined plasterboard and plasters facility near Mumbai to strengthen its distribution infrastructure across the sub-continent.


South American operations delivered improved results, reflecting good growth of plasterboard sales in Brazil and further solid progress in strengthening BPB’s presence as a manufacturer of high quality building plasters in Mexico.


INTERNATIONAL FINANCIAL REPORTING STANDARDS


The group’s programme to achieve transition to International Financial Reporting Standards (“IFRS”) is progressing to plan and BPB, along with other EU listed companies, will prepare and report consolidated financial statements for its current financial year to 31 March 2006 under IFRS. BPB’s September trading update and interim 2005/06 financial statements will also be prepared under IFRS. In advance of these, detailed guidance on the impact of IFRS on BPB’s 2004/05 financial statements will be provided in July.


Initial indications are that IFRS will have a limited impact on the financial statements for the year to 31 March 2005:

• there will be no significant change to revenue and no change to actual cash flows, although there will be presentational changes to the cash flow statement


• underlying profit before tax will fall by between 1% and 2%. This will mainly be due to additional charges for share-based awards, as other adjustments to the Income Statement, including the impact of adopting IAS 19 in respect of retirement and other employee benefits, are not expected to be significant


• reported profit before tax will be slightly higher as goodwill is no longer amortised (£16.3 million) but reviewed annually for impairment, and the exceptional Canadian pension refund (£14.6 million), recorded under UK GAAP, is not recognised in the Income Statement under IFRS
  
• net assets will fall following recognition in the balance sheet of defined benefit pension fund deficits (similar in size to those disclosed under FRS17) and additional deferred taxation liabilities. These reductions in net assets will be partly offset by a reversal of the proposed final dividend accrual of £53.9 million until approval at the annual general meeting

IFRS, and in particular their interpretation, are still evolving and further adjustments may be identified during the transition and audit process. Similarly the IFRS impact on the 2005/06 financial statements is unlikely to be the same as that anticipated for 2004/05. In particular an additional charge of circa £2 million for share-based awards is expected in 2005/06 as the transition rules of IFRS 2 mean that the full annual impact of the standard is not expected until the year to 31 March 2008. Furthermore, BPB has adopted IAS32 and IAS39 from 1 April 2005 and hence the potential earnings volatility from marking to market financial instruments will be reported for the first time in the interim results for the six months to 30 September 2005.


OUTLOOK


BPB is currently seeing a continuation of the positive momentum in sales demand and pricing levels achieved last year in the group’s key markets, even though manufacturing capacity is constraining sales growth in some locations. Given the group’s well positioned low-cost businesses and clear strategy for growth, the Board is confident that BPB will build on last year’s record profits and deliver good progress for the current year.


View the full release and financial statements.