Zotefoams plc (LON:ZTF), a world leader in cellular materials technology, has provided an update in respect of its financial year ending 31 December 2022.
As communicated in the Group’s trading update of 13 October, performance over the nine months to 30 September 2022 had been strong, with revenues approximately 24% ahead of the comparable prior year period.
Encouragingly, trading during October and November has remained strong, with both the Polyolefin Foams and High-Performance Products businesses continuing to deliver year-on-year growth as well as a continued focus on cost and efficiency. As a result, based on current FX rates, the Board now expects Group FY22 adjusted profit before income tax to be ahead of current market expectations*, with the extent of the outperformance primarily dependent on the timing of customer shipments in the final weeks of the year.
Cash generation also continues to be positive. The better than anticipated earnings performance should contribute to an appreciable reduction in leverage compared with that reported in the interims at 30 June 2022.
Commenting on the update David Stirling, Group CEO of Zotefoams, said:
“I am pleased that Zotefoams continues to perform well and deliver excellent growth in both revenue and profitability. Whilst this year has seen considerable challenges in the form of both cost and demand volatility, we have continued to demonstrate resilience in mitigating these, which is testament to Zotefoams’ well-established products and experienced team.
“Whilst we expect a number of the challenges experienced this year to continue into 2023, we are confident in our ability to respond and we continue to see significant opportunity for the Group.”
* Current Company-compiled consensus expectations for adjusted profit before income tax and separately disclosed items, for the year ending 31 December 2022, is £10.7m.
