Weak sterling helps Zotefoams expand margins

Published on Friday 3 July 2009 21:26

SMALL BUT BEAUTIFUL

FOAM maker Zotefoams remains on track to meet targets this year despite sales tumbling 20 per cent in the first half of 2009 compared with the previous six months.

Sales in the Polyolefin foams business have benefited from the impact of a weaker sterling, which has meant that raw material have remained at levels significantly lower than the average price during 2008.

The firm said: "HPP (high-performance polymers] sales are well above the levels experienced at this point last year, with increased shipments to the aviation industry.

"Timing of revenues remains uncertain but growth prospects from this segment are very exciting."

There were one-off costs taken in the first half, particularly in respect of redundancies, Zotefoams said – but it expects the benefits to be realised in the second half of the year.

"Overall, the company is trading in line with expectations and the board remains confident of the company's future prospects," the company added.

Zotefoams, which has a market cap of around 21 million, reported a 17 per cent rise in profit to 3.93m in 2008. It is due to report its interim results on 4 August.