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3 Jul 2009 07:00
Zotefoams plc
("Zotefoams" or "the Company")
Trading Update
3 July 2009 - Zotefoams, which manufactures and sells high-performance foams, today announces its trading update for the six months ended 30 June 2009.
During the period, the Company has experienced sales volumes approximately 20% lower than in the second half of 2008. In line with comments made in the AGM statement on 7 May 2009, management has taken initiatives to control cost which has resulted in one-off costs being taken in the first half, particularly in respect of redundancies, with the benefits being realised mainly in the second half of the year.
Sales in our Polyolefin foams business have benefited from the impact of a weaker Sterling against the US Dollar and Euro. Raw material input costs for this segment have remained relatively stable over the six months ended 30 June 2009 at levels significantly lower than the average price during 2008.
In our emerging HPP (High-performance polymers) segment, sales are well above the levels experienced at this point last year, with increased shipments to the aviation industry. Within the other market segments of HPP, we continue to make satisfactory progress given the current market conditions. Timing of revenues remains uncertain but with a positive underlying trend the Board is confident that the growth prospects from this segment are very exciting.
Overall, the Company is trading in line with expectations and the Board remains confident of the Company's future prospects.
The Company will announce its interim results for the six months ended 30 June 2009 on Tuesday 4 August 2009.
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 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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