Last checked at 23 Oct 2013 07:00
23 October 2013
Zotefoams plc
("Zotefoams" or "the Company")
Trading Update and Interim Management Statement for the Quarter ended 30 September 2013
Zotefoams plc (the "Company"), a world leader in cellular material technology, today announces a trading update and its interim management statement for the third quarter ended 30 September 2013.
Growth in sales of High-Performance Products ("HPP") products and Azote® polyolefin foams in Asia in the third quarter has been offset by an unexpected shortfall in shipments to some European polyolefin customers, leaving total sales in the quarter at the same level as 2012 and below the level previously anticipated. These falls are, in the main, related to larger customers who are responding to continued destocking in the downstream market, which affects their demand levels in the short-term. The Board considers it prudent to assume that this trend will continue for the remainder of the year but, with the benefit of our shorter lead times, we expect to progress in this market in 2014.
Our HPP products business continues to grow strongly with long-term projects giving positive momentum into 2014 and beyond.
MuCell Extrusion, our technology licensing business, is focusing increasingly on consumer packaging. Given the scale of this opportunity further investment in our technology is being made during the fourth quarter.
Foreign currency rates have been less favourable in the third quarter compared to the first half of 2013 and the adverse impact in this period, mainly due to our US-dollar denominated investments, is in the region of £0.4 million.
The overall impact of these factors is that the Company expects second half profit to be below the level seen in the first half and therefore profit for the year to be below previous management expectations.
Although it is disappointing to see the current shortfall in European polyolefin foams, the Board considers the impact to be short-term and is encouraged by the performance of the business elsewhere. A return to growth is expected in 2014, and the Board remains confident in the long-term prospects for the business.
Enquiries: | |
Zotefoams plc | 0208-664-1600 |
David Stirling, Managing Director | |
Clifford Hurst, Finance Director | |
FTI Consulting | 0207-831-3113 |
John Dineen, Victoria Foster Mitchell |
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 lightweight 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
ZOTEK®, Azote® and microZOTE® are registered trademarks of Zotefoams plc. MuCell® is a registered trademark of Trexel Inc. T-Tubes® is a registered trademark of UFP Technologies Inc.