FoaMasters International Limited (FoaMasters or the Company) (AIM: FOAM), a leading Asia-based manufacturer and producer of high-quality polyurethane flexible foam and finished products, is pleased to announce a trading and operational update, ahead of the release of its maiden Preliminary Results for the year ended 31 December 2007 in April 2008.
Trading Statement
The Board is pleased to report that it expects the results for the year ended 31 December 2007 to be in line with its expectations.
Introduction of EnviroMaster series of products
EnviroMaster is FoaMasters new series of environmentally friendly products.
In November 2007, the Company commissioned its first recycled foam powder production facility in Heshan, China, with an annual capacity of 854 tonnes. The use of EnviroMaster recycled powder in the manufacturing of FoaMasters foam products will make them environmentally friendly and potentially improve margins across the Group product range. By the end of 2007, the majority of the Group facilities had been adjusted to allow for the use of the EnviroMaster recycled powder.
Following Admission to AIM in December 2007, the Company launched its EnviroMaster product range and they have been well received by a number of major customers including True Seating Concept, one of the largest office chair distributors in North America and Primo, a bedding distributor in Canada and America.
FoaMasters anticipates that it will increase its capacity to produce the EnviroMaster recycled powder through additional facilities within the new plant in Zhejiang, China, in the second half of 2008.
New foam production facility
In December 2007 FoaMasters commissioned a new production plant in Zhejiang province, China, which has a capacity of up to 9,000 tonnes per annum. The facility is the ninth plant in the FoaMasters Group, giving a total annual capacity of over 66,000 tonnes.
Market Development
In recent months the Company has been increasingly focused on developing its domestic market presence with a number of initiatives to improve its distribution within China and the rest of Asia. The Company has increased its Sonia own brand marketing functions within Asia, along with an increase in the number of products in the Sonia range.
2008 Outlook
During 2008 FoaMasters plans to open another manufacturing plant to further its planned production expansion in China to cater for the increasing domestic demand for its products. The Company is also assessing options to expand its presence within Vietnam, through its joint venture partner, Yue Yuen Holdings.
Mr. Jack Cheong, CEO of FoaMasters, commented:
We are pleased that 2007 financial performance was in line with our expectations. Following admission to AIM in December the Company is continuing to build its production capacity through new plant expansion and focusing the development of its marketing function in China to take advantage of the growing domestic demand. We look forward to the year ahead with confidence.