Zotefoams PLC Trading Update (9276F)
November 01 2018 - 3:00AM
UK Regulatory
TIDMZTF
RNS Number : 9276F
Zotefoams PLC
01 November 2018
Zotefoams plc
("Zotefoams" or "the Group")
Trading Update
1(st) November 2018 - Zotefoams, a world leader in cellular
materials technology, today provides a trading update for the third
quarter ended 30 September 2018.
Zotefoams is pleased to report a record third quarter sales
performance. Using foreign exchange rates as at 30 September 2018,
full-year revenues and profit before tax are now expected to be
slightly ahead of consensus market expectations.
In the nine months ended 30 September 2018, the Group has
recorded:
-- 16% increase in Group revenues against the comparative period, 18% in constant currency
-- 7% growth in Polyolefin foams (72% of Group revenue)
o Improved sales mix
o Additional capacity contributing to 5% higher sales
volumes;
-- 97% increase in HPP sales (26% of Group revenue)
o Increased product adoption by end-users delivered very strong
growth in our ZOTEK(R) PEBA elastomeric foams used in performance
footwear;
o Strong recovery in ZOTEK(R) F fluoropolymer foams mainly from
aviation applications;
o Orders for T-FIT(R) insulation products, down slightly
year-to-date, are more strongly weighted in the final quarter this
year, with annual growth in this product range dependent upon
timing of shipments in the final quarter;
-- MuCell Extrusion (2% of Group revenue)
o Year-to-date sales fell by 21%, excluding the one-off
equipment sale in 2017;
o Q3 sales were impacted as a result of our internal
restructuring, described in our interim results statement, which
absorbed resource;
o MuCell Extrusion is being re-focused to develop the full
potential of its technology;
-- Capacity expansion programmes in the UK and USA are
progressing well, with planned commissioning in 2019, while the
announced new capacity in Poland is planned to come on stream in
2020.
Commenting on the update David Stirling, Group CEO of Zotefoams,
said:
"We expect 2018 to be another year of substantial progress for
the Group: growing revenue, developing our portfolio of
opportunities supported by committed capacity investments and
enhancing our talent pool. We remain confident about the future
prospects of the business."
- Ends -
Enquiries:
Zotefoams plc +44 (0) 208 664 1600
David Stirling, Group CEO
Gary McGrath, Group CFO
IFC Advisory (PR) +44 (0) 203 934 6630
Graham Herring
Miles Nolan
Zach Cohen
About Zotefoams plc
Zotefoams plc (LSE - ZTF) is a world leader in cellular
materials technology. Utilising a variety of unique manufacturing
processes, including environmentally friendly nitrogen expansion
for lightweight AZOTE(R) polyolefin and ZOTEK(R) high-performance
foams, Zotefoams sells to diverse markets worldwide. Zotefoams uses
its own cellular materials to manufacture T-FIT(R) advanced
insulation for demanding industrial markets. In addition, Zotefoams
owns and licenses patented MuCell(R) microcellular foam technology,
developed specifically for extrusion applications, from a base in
Massachusetts, USA to customers worldwide.
Zotefoams is headquartered in Croydon, UK, with additional
manufacturing sites in Kentucky and Oklahoma, USA (foam products
manufacture and conversion), Massachusetts, USA (MuCell Extrusion)
and Jiangsu Province, China (T-FIT(R)). A third foam-manufacturing
site, in Poland, is planned to begin operations in 2020.
www.zotefoams.com
AZOTE(R), ZOTEK(R), T-FIT(R) are registered trademarks of
Zotefoams plc
MuCell(R) is a registered trademark of Trexel Inc.
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END
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