Zotefoams plc (LON:ZTF), a world leader in cellular material technology, today announced its interim results for the six months ended 30 June 2018.
· Record Group Revenue of £37.89m, up 12% on prior year (2017: £33.84m) and 17% in constant currency:
o 4% increase in Polyolefin Foams supported by new USA capacity
o 82% growth in High Performance Products (“HPP”), which now represents 24% (2017: 15%) of Group sales
o MuCell Extrusion sales of £0.86m (2017: £1.96m) with 20% underlying growth excluding the large, one-off capital equipment sale in 2017
· Profit before tax and exceptional item up 21% to £4.60m (2017: £3.81m)
· Profit before tax up 64% to £4.60m (2017: £2.81m)
· Successful bank refinancing and £20.6m equity raise (before expenses) completed in May
· Three major capital projects to expand capacity to support growth are on schedule
· Interim dividend increased by 3.1% to 1.97 pence
· The Group continues to trade in line with Board expectations
Commenting on the results, David Stirling, Zotefoams plc CEO, said: “Zotefoams’ ambition is to be the world leader in cellular materials technology in our chosen markets and, in the period, we have delivered strong organic growth and accelerated our investment plans to realise this ambition.
In the first half of 2018 we also commissioned the initial phase of capacity expansion in Kentucky, USA, which allowed us to increase sales volumes in what remains a capacity constrained environment. Sales of higher value High Performance Products have grown very strongly and now represent 24% (2017: 15%) of Group sales. We enter the second half of the year with a strong order book, a differentiated product portfolio and continued growth expectations across all business units.
The Group continues to trade in line with the Board’s expectations and the Board remains confident in the future prospects for the business.”