Last checked at 3 Nov 2008 07:00
3 November 2008
Zotefoams plc
("Zotefoams" or "the Company")
Interim Management Statement for the Quarter Ended 30 September 2008
Zotefoams, which manufactures and sells high-performance foams, announces its Interim Management Statement for the quarter ended 30 September 2008.
In the first nine months of the year the Company has traded well and the Board remains confident of the Company's prospects although we have more limited visibility on our forward order book than in the recent past due to the current uncertain economic conditions.
In the third quarter sales have been in line with expectations and 10% higher than in the comparable period in 2007 including benefit from the weakness of Sterling against the Euro and US Dollar. As stated at the time of our Interim Results, the price of LDPE, our major raw material, has been rising throughout 2008 and Sterling prices paid in the third quarter were approximately 33% above those in the comparable period in 2007. As there is a delay between purchasing and using raw materials, the major effect of these price increases will be felt in the fourth quarter, coinciding with our own price increase program.
Looking to the future and underpinned by the Board's confidence in the Company's prospects, we have increased resources in sales, marketing and product development during 2008. We believe that this approach is essential for the development of our business in the medium term.
The Company's balance sheet remains strong with net debt as at 30 September 2008 of £2.1 million, which equates to gearing of 8%, after the $3 million investment to purchase our associate share of MuCell Extrusion LLC during the third quarter and payment of our interim dividend of 1.5p per share in September.
Enquiries:
| Zotefoams plc | 0208-664-1600 |
| David Stirling, Managing Director | |
| Clifford Hurst, Finance Director |
| Financial Dynamics Limited | 0207-269-7279 |
| Ben Brewerton |
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.