18th Mar 2014 11:20
LONDON (Alliance News) - Cellular material technology company Zotefoams PLC Tuesday reported a lower pretax profit for 2013 as its Polyolefin foams business was hit by customer destocking, particularly in Continental Europe, but it predicted a return to growth in 2014 as that business recovers.
The maker of foam blocks and materials reported a pretax profit of GBP3.9 million for the year, down from GBP5.8 million in 2012 as revenues declined to GBP44.6 million, from GBP47.2 million.
It said that so far in 2014, it has experienced good growth in Polyolefin foams, and it is commissioning extra manufacturing capacity early in the second quarter. Its also expecting further growth for its HPP foams and MEL licensing businesses.
"While being mindful of near-term economic conditions, the board anticipates a return to growth and improvement in performance in 2014 and remains confident about the long-term prospects for our business," Chairman Nigel Howard said in a statement.
The company increased its final dividend for 2013 to 3.6 pence, from 3.5p, meaning the total dividend will be 5.3p, up from 5.2p in 2012.
Zotefoams shares were up 0.3% at 178 pence Tuesday morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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