7th Apr 2020 11:49
(Alliance News) - Zotefoams PLC on Tuesday reported slight revenue and profit falls in 2019.
Zotefoams shares were 31% higher at 207.52 pence each in London on Tuesday morning.
Revenue slipped 0.2% to GBP80.9 million from GBP81.0 million, while pretax profit edged 0.5% lower to GBP9.8 million from GBP9.9 million.
Croydon-based Zotefoams makes foam products for industries such as sports, construction, marine, automation, medical equipment, and aerospace.
In its Polyolefin Foams division, revenue was down 10% to GBP51.4 million. There was however growth of 20% and 59% in the HPP and MEL divisions.
Zotefoams in March had said it was suspending dividend payments in a bid to save cash amid the Covid-19 outbreak. In 2018, its payout totalled 4.15p per share.
Zotefoams added: "The challenging market conditions experienced in the latter part of 2019, particularly within our Polyolefin Foams business, have yet to improve noticeably. Adding to this, the outbreak of the Covid-19 virus is causing additional disruption.
"Based largely on the expected demand profile for HPP products across a number of markets, the board anticipates a stronger performance during the second half of the year. We are, however, mindful that the further spread of the virus, and responses to this, have created significant uncertainty in the near term with likely adverse trading impacts on operations and demand patterns."
By Eric Cunha; [email protected]
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