Last checked at 12 May 2011 07:00
12 May 2011
Zotefoams plc
("Zotefoams" or "the Company")
AGM Statement and Trading Update
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 2010 on 8 March 2011, I commented that we had seen very strong levels of order intake. I am pleased to say that these trends have continued with both Azote® polyolefin foam and High-Performance Polymers ("HPP") foam sales for the first four months of 2011 significantly ahead of the same period last year. Sales of HPP products for the first half, which depend on the phasing of relatively large shipments, are anticipated to be at a similar level to that experienced in the first half of 2010. The robust sales performance in our Azote® business experienced to date is continuing in the second quarter of 2011.
As I reported on 8 March 2011, high levels of market demand for polymer products worldwide are leading to rising raw material prices and certain supply related issues. These trends have continued and we are increasing our selling prices while continuing to seek alternative sources of material supply to mitigate the impact.
On 30 March 2011 we purchased the remaining 70% of MuCell Extrusion LLC ("MEL") that we previously did not own, which was partially financed by a placing of new shares to raise gross proceeds of approximately £2.3 million. Integration of MEL into Zotefoams is proceeding well and I am pleased to welcome its employees into the Zotefoams Group. The MEL technology, which is licensed to polymer extruders across a wide variety of industries, adds to our portfolio of growth opportunities for the future.
Demand from our customers is currently high and our order book is strong. We have a solid balance sheet, a wide variety of options for future growth and the Board therefore remains confident about the long-term prospects of the business."
Enquiries:
Zotefoams plc 0208-664-1600
David Stirling, Managing Director
Clifford Hurst, Finance Director
Financial Dynamics Limited 0207-831-3113
Ben Brewerton/John Dineen
About Zotefoams plc
Zotefoams plc (LSE - ZTF) is a world leader in cellular material technology. Using a unique manufacturing process with environmentally friendly nitrogen expansion, Zotefoams produces light-weight foams in Croydon, UK and Kentucky, USA for diverse markets worldwide through its global sales force. Zotefoams also owns and licenses patented MuCell® microcellular foam technology from a base in Massachusetts, USA to customers worldwide and sells T-Tubes® advanced insulation systems made from its patented ZOTEK® fluoropolymer foams.
www.zotefoams.com