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REG - Zotefoams PLC - Full Year Trading Update

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RNS Number : 1870N  Zotefoams PLC  19 January 2023

Zotefoams plc

("Zotefoams" or "Group")

 

Full year trading update

Strong performance and record profits

 

19 January 2023 - Zotefoams, a world leader in cellular materials technology,
today provides a trading update for the Group's financial year ended 31
December 2022 (unaudited).

 

The strong trading performance reported in the Group's update of 15 December
2022 continued through to the end of the year and, as a result, the Group
expects to report full year revenue growth of 26%, to £127.4m (2021:
£100.8m), which is ahead of current market expectations.

 

Full year trends for the specific Group's business units were as follows:

 

 •    29% growth in High Performance Product (HPP) sales to £54.5m (2021: £42.3m):
      -     Footwear sales grew by 25%, with continued momentum from new
      products and projects, representing approximately 33% of Group revenue
      -     ZOTEK(®) fluoropolymer foam revenue increased by 48%, principally
      benefitting from the continued recovery of the aviation market
      -     T-FIT(®) technical insulation sales grew 48%, overcoming continued
      COVID-related challenges in our manufacturing facility in China
 •    25% growth in AZOTE(®) polyolefin sales to £70.1m (2021: £56.2m):
      -     Good performance from all regions with pricing actions recovering
      input cost inflation
      -     Volume in line with the previous year, with increases experienced in
      most major geographical markets offsetting a 5% decline in continental Europe,
      primarily due to lower demand from the automotive segment
 •    23% growth in MuCell Extrusion (MEL) sales to £2.8m (2021: £2.3m), with
      increasing interest in the Group's technology for polymer reduction.
      Development of the mono-material ReZorce(®) packaging is progressing well and
      is currently a significant focus of the team.

 

Profit before tax for the year is now expected to be not less than £12.0m
(2021: £7.0m), which is ahead of current market expectations and represents a
year-on-year increase of over 70%. This record profit figure is net of the
segment loss in the MEL Business Unit increasing to £1.9m (2021: £0.7m),
which reflects the continued investment in the development of ReZorce
packaging technology.

 

The Group demonstrated strong cash generation, with the year-end leverage
multiple (net debt to EBITDA) expected to reduce to approximately 1.16x (2021:
2.06x).

 

Notice of results

 

The Company expects to publish its preliminary results for the year ended 31
December 2022 on Tuesday 21 March 2023.

 

Commenting on the update David Stirling, Group CEO of Zotefoams, said:

 

"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.

 

"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.

 

"Whilst the shorter-term macroeconomic climate remains uncertain, we continue
to monitor the evolving landscape closely and believe Zotefoams has a strong
portfolio of opportunities, a clear strategy and is well positioned to deliver
further growth."

 

Enquiries:

 

 Zotefoams plc                         +44 (0) 208 664 1600
 David Stirling, Group CEO
 Gary McGrath, Group CFO

 IFC Advisory (Financial PR & IR)      +44 (0) 203 934 6630
 Graham Herring

 Tim Metcalfe

 Zach Cohen

 

About Zotefoams plc

 

Zotefoams plc (LSE - ZTF) is a world leader in cellular materials technology
delivering optimal material solutions for the benefit of society. Utilising a
variety of unique manufacturing processes, including environmentally friendly
nitrogen expansion for lightweight AZOTE(®) polyolefin and ZOTEK(®)
high-performance foams, Zotefoams sells to diverse markets worldwide.
Zotefoams uses its own cellular materials to manufacture T-FIT(®) advanced
insulation for demanding industrial markets. Zotefoams also owns and licenses
patented microcellular foam technology to reduce plastic use in extrusion
applications and for ReZorce(®) mono-material recyclable barrier packaging.

 

Zotefoams is headquartered in Croydon, UK, with additional manufacturing sites
in Kentucky, USA and Brzeg, Poland (foam manufacture), Oklahoma, USA (foam
products manufacture and conversion), Massachusetts, USA, Stilling, Denmark
(microcellular foam technology) and Jiangsu Province, China (T-FIT).

 

www.zotefoams.com (http://www.zotefoams.com)

 

AZOTE(®), ZOTEK(®), ReZorce(®) and T-FIT(®) are registered trademarks of
Zotefoams plc.

 

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