15th Mar 2016 09:00
LONDON (Alliance News) - Cellular material technology company Zotefoams PLC on Tuesday posted a 50% rise in pretax profit following a rise in sales and expansion of margins in 2015.
The company said its pretax profit rose to GBP6.0 million in the year to the end of December from GBP4.0 million a year earlier, partly due to lower one-off costs compared to 2014, when it booked a writedown on a manufacturing facility. Adjusting for one-offs, pretax profit increased 14% to GBP6.4 million from GBP5.6 million.
Revenue grew 11% to GBP54.4 million from GBP49.1 million, with robust performance across product lines. Polyolefin foams revenue, the biggest sales driver, grew 8.0% in the year, while high-performance products revenue rose 25% and MuCell Extrusion revenue increased 25%, helped by higher equipment and engineering sales and a strong US dollar.
Zotefoams will pay a final dividend of 3.8 pence per share, up from 3.7p, and said its total dividend payout will rise to 5.6p from 5.45p.
"We believe certain of our longer term developments are now reaching the point where market success is much more likely and we plan to further increase resources to support these opportunities. While being mindful of market and macro-economic conditions, the Board anticipates 2016 being another year of growth and remains confident about the long-term prospects for our business," said Chairman Nigel Howard.
Zotefoams shares were down 0.7% to 282.00p on Tuesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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