30th Jun 2014 12:59
LONDON (Alliance News) - Zotefoams PLC said Monday that it will take a GBP1.2 million one-off charge from the write down of its microZOTE assets, although it remains confident for a "satisfactory outcome" for the year and continued future progress, in a statement ahead of its annual general meeting.
Zotefoams manufactures and sells cross-linked block foams.
Zotefoams said the write-down will be an exceptional item in its results, and will have no cash effect.
The company said in the first six months of the year it expects to see high single-digit percentage volume growth in its Polyolefin business. It also expects a very strong performance in its High-Performance Products business, with growth nearing 50% at constant currency.
Revenue from its MuCell Extrusion business is expected to be at similar levels to the previous year, although it noted that activity levels are high, and its forward order book for machinery gives it confidence in its growth expectations for the business.
The company said that with the strengthening of sterling in 2014 would lead to a slight benefit as it buys low density polyethene, its main raw material, in euros. This will be outweighed by a hit on foreign currency sales and assets, Zotefoams said.
Zotefoams expects to announce its half-year results and an update on current trading August 12.
Shares in Zotefoams were trading up 2.2% at 239.03 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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