LONDON (ShareCast) - Plastics group British Polythene said it has experienced a downturn in demand from customers in the UK construction sector and parts of its industrial business are quite weak.

"We have very recently been notified of further substantial increases in raw material costs for July and the late notice from our suppliers will result in margin compression while we pass these costs on to our customers," added the group.

"We remain confident that, as with the cost increases of the last few years, we will recover margins as prices stabilise," it added.

The group said there has been good demand from agricultural and consumer related sectors.

It added that it continues to trade mixed for the first six months but has coped well with substantial increases in both oil related raw material and energy costs.

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