The UK foam maker raised sales and profits in the first six months of the year

UK polyolefin foam maker Zotefoams has warned that higher energy costs will present “a major challenge” for the company this year. Announcing its interim results today, the Croydon-based firm said its energy bill would increase significantly when present supply arrangements expire in October.

“We are currently reviewing all our options, including selling price rises, with respect to these and other inflationary cost increases.” Zotefoams’ main manufacturing process is particularly energy-intensive, involving cross-linking polyolefins in large autoclaves under high pressure and at elevated temperature.

The company managed to improve its financial performance over the last six months. Compared with the same period last year, it recorded a 7% growth in sales and profits to Ј13m (E19.5m) and Ј870,000 (E1.3m) respectively. Operationally, the company’s North American plant reached a new production record in June and the UK plant had new high-pressure capacity commissioned in April.

Chairman Bill Fairservice said: “Overall we believe we are in good shape to face the challenges we anticipate for the second half of the year and our investment in new product development is showing promising signs for the medium term.”