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Last checked at 
7 May 2009 07:00
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AGM and Trading Statement |
7 MAY 2009 |
Zotefoams plc
("Zotefoams" or "the Company")
AGM Statement and Trading Update
- Continued Profitability and Cash Generation -
At today's Annual General Meeting Nigel Howard, Chairman of Zotefoams plc, will make the following statement:
"At the time of the preliminary results announcement for the 12 months ended 31 December 2008 on 9 March 2009, I commented that trading had become difficult towards the end of 2008 and that volumes in the first two months of 2009 had been lower than anticipated and that we were taking appropriate measures to control costs to reflect this activity level. Volumes have continued at these reduced levels in March and April. We have continued initiatives to control cost which will result in a reduction in headcount by approximately 20% compared with September 2008. Regretfully this includes a redundancy programme, the one-off costs of which will be borne in May with the ongoing reduction in our cost base taking effect immediately thereafter.
Sales in the HPP (High-performance polymers) segment are less affected by the economic situation and good progress is being made. We continue to invest in the development of these businesses and remain of the view that the growth prospects from this segment are very exciting.
As I have previously stated 2009 will be a challenging year. However, the Company continues to be profitable and cash generative with raw material prices and currency exchange rates more favourable at present than they were in 2008. The actions the Company is taking in terms of cost reduction will underpin operating margins in the current economic environment and, with the longer term potential that HPP offers, the Board remains positive about prospects for the business during 2009 and beyond."
Enquiries:Zotefoams plc 0208-664-1600David Stirling, Managing DirectorClifford Hurst, Finance Director
Financial Dynamics Limited 0207-831-3113 Ben Brewerton/John Dineen
About Zotefoams plc
Zotefoams plc (LSE - ZTF) is the world's leading producer of light weight, cross-linked, closed-cell block foams. These pure, consistent foams are manufactured using a unique environmentally friendly nitrogen expansion technology. Zotefoams was the first to develop cross-linked polyolefin foams and is increasingly using its production technology to manufacture foamed materials based on high-performance polymers. Based in Croydon, UK, Zotefoams also manufactures in Kentucky, USA and markets its products worldwide through a global sales network.
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