The market had been expecting about pounds 13m, but in a statement yesterday the company said that aggressive competition and recession had hit hard.
Plysu, which makes plastic milk and juice bottles, said it had been negotiating supply agreements with UK dairy groups that would affect profits. No one at the company was available for comment.
Plysu's shares have fallen from 300p last year, and took a battering at the end of 1992 when Richard Gordon resigned as managing director after a boardroom coup.
Plysu's statement said: 'These extended negotiations took place against aggressive competition and the outcome will have a temporary adverse affect on profits this year.
'Trading elsewhere in the group is not helped by the continuing recession in Continental Europe and only limited recovery in the UK. As a result the directors of Plysu conclude that profits for the year ending 31 March 1994 will be well below market expectations.'
Plysu said it expected to maintain the dividend at 7p for the current year.
Last year Plysu's taxable profits rose 14 per cent to pounds 10.8m, helped mainly by acquisitions. The company warned then that it had suffered difficult trading in industrial containers, and new competitors in the milk bottle business had affected underlying profits.Reuse content