But firm confident of meeting market expectations
British Polythene Industries has warned sales volumes have continued to be "disappointing" into the third quarter of the year.
The Greenock company said unseasonably wet summer and autumn weather across Europe had provided a five per cent boost in sales of silage stretchwrap but other products had remained weak.
This left overall volumes flat although BPI said it remains confident of delivering "satisfactory" full year results.
The lowering of polymer input costs, lower capital expenditure and cash from retained profits has been used to reduce debt.
The closure of its Swansea factory announced earlier this month with the loss of 49 jobs will lead to volumes transferring to other sites around the UK.
The reorganisation costs of the move are expected to come in at £1.3 million.
In a statement to the stock market BPI said: "Our current expectation for the remainder of the year is a continuation of the pattern of the third quarter but without the benefit of sales of silage stretchwrap.
"Business will continue to be very challenging and we do not anticipate any improvement in demand.
"However, with the changes we have made in the structure of our business, we believe that we have the ability to continue producing good results in these difficult times."