Zotefoams plc (LON:ZTF), a world leader in cellular materials technology, today provides a trading update for the third quarter, ended 30 September 2020.
Zotefoams is pleased to report a record third-quarter sales performance, with revenues approximately 22% ahead of Q3 2019. This reflected very strong contributions, as expected, from both personal protective equipment (“PPE”) and footwear products. While the large PPE programme runs down through the latter part of 2020, the strong momentum in footwear and T-FIT® insulation products, together with early indications of demand recovery in a number of our markets, supports the Board’s continued expectation of strong year-on-year sales growth in Q4. Using current foreign exchange rates and subject to there being no material disruption to the business, the Board expects full-year revenues and underlying profit before tax to be in line with market expectations.
Operating cash performance has continued to be solid, with net debt at 30 September 2020 of £36m, in line with management expectations. The strong trading momentum through the second half, together with the effective cash management actions taken, have left the Group in a resilient financial position. The commissioning of our new foam manufacturing site in Poland is in progress, with first product expected to be shipped to customers in early Q1 2021. In addition, the commissioning of the pilot line for our ReZorce® mono-material barrier packaging technology is expected to begin in December with availability for external trials also in Q1 2021.
Commenting on the update David Stirling, Group CEO of Zotefoams, said:
“2020 has been a difficult year for many businesses. I am pleased Zotefoams’ results are demonstrating the wide applicability of our products and the resilience and flexibility of our people. Our current performance allows us to look beyond the current economic circumstances and maintain our strategy of investing in the current year to support the delivery of longer-term growth.”