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'One caught in PE naughtily pinching bottom? It needs handling flexibly' (10)
I have P---T-C-N- and can only think of PLASTICENE. Any other ideas?
Also 'Strip of ground giving a return' (7) P-O---S

2nd one is PROFITS (anagram).

Of course it is, Terry! Thanks.

Ruth, I think it goes like this:

bottom = LAST, one = I, caught = C, in = IN(!) all inside PE:

PLASTICINE

Cheers, Bullfrog!