19th Jan 2023 12:11
(Alliance News) - Zotefoams PLC on Thursday celebrated full-year revenue above market expectations, following a strong trading performance across its key business units.
Zotefoams is a London-based manufacturer of closed-cell, crosslinked foams, made from polyolefins and engineering polymers for use in sports, construction, marine, automation, medical equipment and aerospace.
For 2022, the company expects full-year revenue growth of 26% to GBP127.4 million from GBP100.8 million in 2021.
High performance product sales rose to GBP54.5 million, up 29% from GBP42.3 million a year prior.
Footwear sales grew by 25% on continued momentum from new products and projects, while Zotek fluoropolymer foam revenue increased by 48%, benefitting from the continued recovery of the aviation market.
Azote polyolefin sales grew 25% to GBP70.1 million, from GBP56.2 million, reflecting good performance from all regions.
Similarly, MuCell Extrusion sales were up 23% to GBP2.8 million, from GBP2.3 million the previous year.
Zotefoams now expects pretax profit of no less than GBP12.0 million, up from GBP7.0 million in 2021 and ahead of current market expectations.
It added that this figure was net of the segment loss in the MEL business unit, which increased to GBP1.9million from GBP700,000 a year prior. Zotefoams said the loss reflected its continued investment in the development of ReZorce packaging technology.
"We are delighted to close the year with very strong sales growth, delivering record profits and excellent cash generation. 2022 was characterised by uncertainty and our team has responded well in dealing with these challenges. The group has delivered growth across all business units," said Chief Executive Officer David Stirling.
"We have also continued to invest in the development of ReZorce mono-material packaging which represents a significant commitment to new technology in the sustainability of consumer goods, in line with our own ESG and efficiency initiatives which remain a core focus."
Zotefoam shares were trading 2.4% higher at 358.00 pence each in London on Thursday afternoon.
The company will publish its annual results on March 21.
By Holly Beveridge; Alliance News reporter
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