Business
2019 Summary, COVID-19 and Current Trading Update
2019 Summary, COVID-19 and Current Trading Update.
About this update from Zotefoams Plc
[{"type":"text","content":"\n \n \n RNS Number : 2903H\n Zotefoams PLC\n 24 March 2020\n \n \n \n \n \n \n \n Zotefoams plc\n \n \n (\"Zotefoams\" or \"Group\" or \"the Company\")\n \n \n \n \n \n 2019 Financial Year Summary, COVID-19 and Current Trading Update\n \n \n \n \n \n \n \n \n \n 24th March 2020 - \n \n Zotefoams, a world leader in cellular materials technology, today provides the following summary of its performance for the financial year ended 31 December 2019 (\"FY2019\") and an update on COVID-19 and current trading.\n \n \n \n \n \n Financial Year 2019 \n \n \n As set out in the announcement of 23 March 2020, the Company has delayed the publication of its preliminary FY2019 results at the request of the Financial Conduct Authority (FCA). Consistent with the guidance set out in the trading update of 21 January 2020, Zotefoams expects, subject to audit completion, to report as follows:\n \n \n \n \n \n · \n Group revenue of £80.86m (2018: £81.04m)\n \n \n o \n HPP sales up 20% to £26.48m (2018: 22.01m)\n \n \n o \n MEL revenue increased by 59% to £3.10m (2018: £1.95m)\n \n \n o \n Polyolefin Foams sales declined by 10% to £51.36m (2018: £57.16m)\n \n \n · \n Gross profit margin of 35.4% (2018: 35.8%)\n \n \n · \n Profit before tax and exceptional item* of £8.76m (2018: £10.81m)\n \n \n · \n Basic EPS before exceptional item* of 14.91p (2018: 18.66p)\n \n \n · \n Statutory profit before tax of £9.81m (2018: £9.86m) and EPS of 17.10p (2018: 16.96p)\n \n \n · \n Net debt as at 31 December 2019 of £31.90m (2018: £12.96m) following investment in property, plant and equipment of £24.41m (2018: £15.83m) in the year\n \n \n · \n Suspension of dividend in the short term due to current uncertainty\n \n \n \n \n \n This performance reflects the previously reported difficult trading conditions in the Polyolefin Foams business in the latter part of 2019, offset in part by the continued progress in HPP and MEL during the year. 2019 was also a year of significant investment for Zotefoams and the strategic capacity expansion projects to support long-term growth expectations are all progressing on track and to budget. Whilst market demand and the unprecedented macroeconomic uncertainty will affect the pace of ramp-up in utilisation in the near term, these assets provide a platform for significa...