British Polythene Industries sees lower costs in early 2015

Plastics maker British Polythene Industries (BPI) unveiled upbeat news on costs as it voiced confidence about hitting annual targets.

BPI, which makes plastic packaging for products ranging from food and drink to building products, said raw material costs softened in November and December. It also predicted further falls early next year.

It added that demand had been similar to last year and it expected underlying volumes for the year to 31 December to broadly match those of 2013.

"We anticipate that our performance for 2014 will comfortably meet current market expectations," the group said in a trading update.

Shares rose 13p or 2.1% to 645p at 13:45 in London.