LONDON (ShareCast) - Plastics and foam-maker Zotefoams said it saw fewer shipments of ‘polyolefin’ foams to Europe in the fourth quarter but expected to progress in this market in 2014.

The polyolefin shortfall will see the AIM-listed company report full year group sales down around 5% compared with 2012, which was expected.

The lower levels of shipments was due to downstream destocking faced by a single large European customer due to Zotefoams increased efficiency and shorter lead time.

The company suggested this was just a short-term issue and the benefits of these lead times would be a significant boon in the new financial year.

Zotefoams’ high-growth units, High-Performance Products and the MuCell Extrusion technology licensing business, both continued to perform well.

“After the setback reported last October, no new major surprises are a relief,” said house broker Investec.

Shares in Zotefoams recovered from initial falls to be down 0.8% at 171p by 14:05 on Wednesday.

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