Last checked at 14 Jan 2016 07:00
Zotefoams plc
("Zotefoams" or "the Company")
Trading Update
14 January 2016 - Zotefoams, a world leader in cellular material technology, today provides a trading update following the Company's financial year end on 31 December 2015.
The Board expects to report an outcome in line with management expectations for the year ended 31 December 2015. Sales1 in the second half of 2015 grew by around 13% compared to the equivalent period in 2014. This is expected to deliver sales growth of approximately 10% for the financial year as a whole.
Polyolefin sales value grew by around 7% for the year, with a 10% growth in volume offset by adverse foreign exchange rates. High-Performance Products sales grew by approximately 24%. In MuCell Extrusion LLC, our technology licensing business, we have achieved a lower average conversion cost to customers which makes adoption of the technology more attractive to customers. During the year we shipped equipment to convert 36 extrusion lines (2014: 20), increasing our overall installed base at customers by 69% to 88 units.
In Walton, Kentucky, USA, we are investing in global capacity to support future sales growth. A delay in the supply of a major piece of equipment means that the commencement of manufacturing from this investment is now expected to be approximately four months later than originally planned. We do not, however, anticipate any adverse impact on our ability to meet our growth forecast due to operational efficiency improvements achieved in Croydon, UK.
As detailed in the announcement on 24 November 2015, Gary McGrath has joined the Board as Finance Director Designate and will be formally appointed Finance Director on 1 February 2016. Clifford Hurst will work with Gary to complete the handover of this role, retiring from the Board and the Company in advance of the AGM in May 2016, as previously stated.
The Board expects to announce preliminary results for the year ended 31 December 2015 on Tuesday 15 March, 2016.
Enquiries: | |
Zotefoams plc | 0208-664-1600 |
David Stirling, Managing Director | |
Clifford Hurst, Finance Director | |
FTI Consulting | 0203-727-1000 |
Victoria Foster Mitchell | |
Simon Conway |
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® is a registered trademark of Zotefoams plc. MuCell® is a registered trademark of Trexel Inc. T-Tubes® is a registered trademark of UFP Technologies Inc.
1 Sales made by joint ventures as well as those made by Zotefoams plc and its subsidiaries.