Zotefoams PLC Trading Update (6817S)
July 10 2015 - 02:00AM
UK Regulatory
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RNS Number : 6817S
Zotefoams PLC
10 July 2015
Zotefoams plc
("Zotefoams" or "the Company")
Trading Update
10 July 2015 - Zotefoams, a world leader in cellular material
technology, today provides a trading update for the six months
ended 30 June 2015.
For the first six months of 2015 Zotefoams will deliver sales(1)
growth of approximately 8%, which is approximately 10% on a
constant currency basis. Zotefoams expects revenue from MuCell
Extrusion LLC, the Company's technology licensing business, to grow
by around 40% and High-Performance Products ("HPP") sales growth to
exceed 20%, building on the very strong HPP performance in 2014.
The Company's Polyolefin foams sales volumes have increased by 6%
and this is expected to deliver an increase in revenue of
approximately 5%, equivalent to around 8% in constant currency. All
three business units have strong forward order books.
The price of LDPE (Low Density Polyethylene), the Company's
major raw material, was at a similar average euro price to the
first half of 2014, although prices have risen sharply in recent
months. The weaker euro has benefitted raw material purchases,
which are significantly euro based, and US dollar sales have
benefitted from the stronger dollar. However this has been more
than offset by the impact of the euro on both Zotefoams' European
sales and, in particular, the unhedged translational impact on the
Company's balance sheet.
In Walton, Kentucky, USA, the major investment to increase
global manufacturing capacity in support of future growth is
proceeding to schedule.
Whilst being mindful of the potential impact of economic
conditions the Company continues to expect 2015 to be another year
of progress and remains confident about the long-term prospects for
the business.
Zotefoams expects to announce its interim results for the six
months ended 30 June 2015 on Tuesday 4 August 2015.
Enquiries:
Zotefoams plc
David Stirling, Group CEO 0208-664-1600
Clifford Hurst, Finance Director
FTI Consulting 0203-727-1000
Victoria Foster Mitchell/Simon
Conway
Notes
(1) Sales consolidates all external sales made by the
joint-ventures as well as those made by Zotefoams plc and its
subsidiaries.
(2) Foreign exchange rates were:
H1:2015 average H1:2014 average 30 Jun 2015 31 Dec 2014
Euro 1.378 1.223 1.412 1.289
---------------- ---------------- ------------ ------------
USD 1.530 1.673 1.574 1.559
---------------- ---------------- ------------ ------------
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(R) microcellular foam technology
from a base in Massachusetts, USA to customers worldwide and sells
T-Tubes(R) advanced insulation systems made from its patented
ZOTEK(R) fluoropolymer foams.
www.zotefoams.com
ZOTEK(R) is a registered trademark of Zotefoams plc. MuCell(R)
is a registered trademark of Trexel Inc. T-Tubes(R) is a registered
trademark of UFP Technologies Inc.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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