Zotefoams PLC shares were up on Thursday, after it said it expects 2022 profit to beat market expectations of £10.7 million.
Shares in the London-based maker of industrial plastics were up 6.5% to 317.49 pence each in London on Thursday morning.
The company said that performance over the nine months to September 30 has been ‘strong’, with revenue around 24% ahead of the comparable prior year period.
It added that trading during October and November has remained strong, with both the Polyolefin Foams and High-Performance Products businesses continuing to deliver year-on-year growth as well as a continued focus on cost and efficiency.
Based on this, Zotefoams now expects full year adjusted pretax profit to be ahead of current market expectations of £10.7 million. It added that the extent of the outperformance is dependent on the timing of customer shipments in the final weeks of the year.
In 2021, the company reported pretax profit of £7.0 million, down 16% from £8.3 million generated in 2020.
Chief Executive David Stirling said: ‘Whilst this year has seen considerable challenges in the form of both cost and demand volatility, we have continued to demonstrate resilience in mitigating these, which is testament to Zotefoams’ well-established products and experienced team.
‘Whilst we expect a number of the challenges experienced this year to continue into 2023, we are confident in our ability to respond and we continue to see significant opportunity for the group,’ Stirling continued.
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