Zotefoams PLC Operational and Trading Update (6535O)
02 June 2020 - 5:00PM
UK Regulatory
TIDMZTF
RNS Number : 6535O
Zotefoams PLC
02 June 2020
Zotefoams plc
("Zotefoams" or "Group")
Operational and Trading Update
2 June 2020 - Zotefoams, a world leader in cellular materials
technology, today provides the following operational and trading
update for the second quarter, to date.
-- Maintained operational continuity throughout April and May despite challenging conditions
-- Specified in substantial UK Government PPE contract awarded
to largest UK customer, using Plastazote(R) polyolefin foam
-- Expect overall trading for the second quarter to be in line
with Board expectations at the time of preliminary results
announced on 7 April 2020
-- Stronger second half performance expected
-- Good liquidity with cash performance in the period since 7
April 2020 in line with expectations
The health and safety of our colleagues, their families and our
business partners has remained our primary concern. The Group is
pleased to report that it has established safe working procedures
at each of its sites, which has enabled the business to maintain
operational continuity throughout April and May. Alongside this,
the Group's supply chain has remained resilient, ensuring that
Zotefoams has been able to continue to provide a high level of
service to its customers.
As anticipated and reflecting the disruption arising from the
COVID-19 outbreak on a number of markets, demand conditions have
been more challenging during April and May. The Group has taken
successful action to manage cost and continues to expect overall
trading for the second quarter to be consistent with Board's
expectations as at the time of the preliminary results announced on
7 April 2020.
Notwithstanding the more challenging conditions in the short
term, Zotefoams has been proactive in seeking to identify new
business opportunities and is pleased to announce that it will
supply Plastazote(R) polyolefin foams for a substantial new
contract awarded to its largest UK customer. The project, which
starts immediately and is expected to run for a period of 26 weeks,
involves the provision of foam for the UK Government's PPE
initiative. This will significantly supplement existing AZOTE(R)
volumes, particularly in the second half of 2020, and reinforces
the benefits of the diverse range of applications and markets for
the Group's products.
While the backdrop remains too uncertain to provide detailed
financial guidance at this time, the Board continues to expect a
stronger performance in the second half of the year, underpinned by
more resilient demand for High-Performance Products. The current
outlook for both footwear and T-FIT(R) technical insulation
products in the second half remains positive, while conditions in
the commercial aviation market are expected to remain weak.
As set out in the Group's results for the year ended 31 December
2019, there has been a significant focus on cash and cost
management in response to the COVID-19 situation. A number of
actions have been implemented swiftly and effectively, which have
resulted in a cash performance in the period since 7 April 2020 in
line with expectations at that time.
Commenting on the update David Stirling, Group CEO of Zotefoams,
said:
"We are delighted and proud that Zotefoams materials have been
chosen for the provision of critical PPE equipment for front line
workers, including within the NHS. This contract not only reflects
the unique benefits of our foam products but also the adaptability
of our business to provide solutions across a broad range of market
segments.
"We remain mindful of the continued level of uncertainty and
expect market conditions to remain challenging in the short term.
However, this incremental AZOTE(R) foam order, together with the
continued robust HPP pipeline and strong cost management delivered
to date, further supports the Board's confidence in the Group's
balance sheet strength, its growth strategy and in the long-term
prospects of the business."
- 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
Tim Metcalfe
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 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) and Plastazote(R) are registered
trademarks of Zotefoams plc
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCFIFSRRRIFIII
(END) Dow Jones Newswires
June 02, 2020 03:00 ET (07:00 GMT)
Zotefoams (LSE:ZTF)
Historical Stock Chart
From Apr 2024 to May 2024
Zotefoams (LSE:ZTF)
Historical Stock Chart
From May 2023 to May 2024