The cross-linked polyolefin foam maker has had a difficult year in European markets

The cross-linked polyolefin foam maker has had a difficult year in European markets

UK cross-linked polyolefin foam maker Zotefoams has cut its dividend payment following a difficult year in UK and continental European markets. The south London firm will pay 4.5p (6.4 euro cents) a share compared to 7.5p (11 euro cents) last year.

Zotefoams said trading conditions had remained in line with those described last month (PRW.com 17 November) when it predicted that profits would be half of last year’s pre-exceptional profit of Ј1.95m (E2.8m).

The company blamed the slump on increasing costs, following restructuring at its US plant in Kentucky, together with increases in depreciation and rates. It said group sales would be similar to last year. US sales fared well with strong growth in 2003 and more growth forecast in 2004.

This balanced the disappointment in Europe, where sales will fall below last year’s level. UK sales suffered a major blow from a key OEM customer that cut its orders.