Zotefoams PLC Year-End Trading Update (3793A)
January 21 2020 - 2:00AM
UK Regulatory
TIDMZTF
RNS Number : 3793A
Zotefoams PLC
21 January 2020
Zotefoams plc
("Zotefoams" or "Group" or "the Company")
Year-End Trading Update
21st January 2020 - Zotefoams, a world leader in cellular
materials technology, today provides a trading update following the
Company's financial year end on 31 December 2019.
Trading conditions in the final quarter were largely as
anticipated with the result that full year Group revenue will be at
a similar level to 2018. For the financial year, business units
performed as follows:
-- c20% increase in High Performance Products ("HPP") sales;
-- c60% increase in MuCell Extrusion LLC ("MEL") sales and;
-- c10% decline in Polyolefin sales, reflecting challenging
market conditions in the second half of the year.
In the final quarter of the year profitability was ahead of
management expectations prior to an adverse impact from foreign
exchange rate movements. From the date of our last announcement on
3 October until 31 December 2019 sterling appreciation resulted in
an adverse foreign exchange impact, for this period alone, on Group
profit before tax of GBP0.8m. Of this, GBP0.6m related to the
non-cash translation impact of intra-group loans. The Group
therefore expects to report, subject to audit, adjusted profit
before tax and exceptional item* for the year ended 31 December
2019 of approximately GBP9.1m.
All major capital projects were either completed during the year
or are expected to complete in 2020 on time and on budget.
The Company expects to announce preliminary results for the year
ended 31 December 2019 on Tuesday 24 March 2020.
Commenting on the update David Stirling, Group CEO of Zotefoams,
said:
While market conditions during the year have been challenging
for our Polyolefins business, we expect to see a recovery in 2020.
In line with our long-term strategy we expect to deliver further
growth in our HPP and MEL business units.
Due to the current market conditions, recently commissioned
long-term capacity investments are expected to run at low
utilisation rates, with depreciation and other costs being under
recovered in the short term. These investments are consistent with
the opportunity and ambition of Zotefoams and, with the anticipated
recovery in the markets for Polyolefin foams and further growth
from HPP, we expect improved utilisation of these assets in the
latter part of 2020.
- Ends -
Enquiries:
Zotefoams plc +44 (0) 208 664 1600
David Stirling, Group CEO
Gary McGrath, Group CFO
IFC Advisory +44 (0) 203 934 6630
Graham Herring
Zach Cohen
* Profit before tax, exceptional item and the amortisation of
acquired intangible assets
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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