The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
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I wonder if news from NIKE will have a read-across ZTF today
to https://www.msn.com/en-us/money/companies/nike-cuts-sales-view-on-choppy-demand-outlines-2-billion-savings-plan/ar-AA1lSU80
Great piece in The Times bout Zotefoams involvement with Nike:
https://www.thetimes.co.uk/article/86788cb2-cf47-4095-b6c0-f33479eea1af?shareToken=42e6367fed76b0caec25a4893e7704f0
Https://www.thegrocer.co.uk/healthcare-beauty-and-baby/ellas-kitchen-pledges-to-make-75-of-babyfood-pouches-recyclable/680181.article
Obvious synergies here with Ella's proposed switch to monomaterial polypropylene pouches. Not the product anounced for trial in Q1 2024 (juice cartons) but it could be on the horizon. Thoughts?
2 big trades today @340p. Looks like the seller has been cleared out . Hoping a new holder has been made on the back of strong fundamentals for next year and beyond.
Onward and upward....2024 should be transformational.
Impetus has been building in the totally recyclable drinks packaging ReZorce. Zotefoams is working with a "global packaging supplier" aiming for commercial roll out in Q1 2024. The fact that ReZorce is immediately transferable to existing end-user packaging equipment is pivotal as the changeover is seamless and requires no Capex. That immediately ups the green credentials of the customer so it looks like a win:win across the interface from start to finish. This should certainly light-up the 2024 share recommendations by numerous Christmas tipsters. Could Be a real blockbuster next year based on well-advanced trials and scale-up.
First target £3.50 before retracing to £4.10. Once that goes its blue all the way into 2024. The global packager, as an early exclusive adopter of ReZorce, is key to the enormous commercial scale of this product. An eco-friendly recyclable alternative to the huge number of drinks packages that go directly to landfill is highly desirable and a must for green tracking funds. Roll on 2024.
The fact that a globally significant packager is working alongside Zotefoams and is effectively guiding a dichotomy of the business is a massive acceptance that it will successfully roll out early 2024. The non disclosure agreement by this global early adopter is a good indicator of how transformative ReZorce is. The fact that it can be seamlessly used on existing machinery is pivotal as it requires no Capex by the end user. Massive.
I didnt realise t hat many of the drink packs currently on supermarket shelves are not recyclable. Seems this market takes a lot of persuading. To be honest this is the case with many innovations in different sectors. New potentially game changing product gets zero rating by the meerkat. Frankly it doesnt seem any more of a gamble than anything else at the moment. You'd think industry would be queueing up for this
The wording on the announcement of that award is highly significant. The judges have obviously seen development of ReZorce against milestones being achieved and have drawn their conclusions. To define the product as a potential gamechanger in the packaging industry is a strong indicator that adoption is only a matter of time by its global partner. Solid and exciting for commercial scale up in the coming months.
A great endorsement. Great result for the development team. Have we a world leader product in the making?
Great recognition for ReZorce in this morning's RNS. May the path to commercialisation be a smooth one.
Agree, seem to be consistent packages being taken off the market by buyer(s). Looking at the possibility/probability of the ReZource contract rolling out in Q1 2024 it looks a nice entry point for those who haven't bought in yet. Be interesting to eventually see who the 'significant' contract is with once the nda is superceded by volume production.
Is the market now realising the potential here? Rerating on the way??
Yes good all round update as you say roll on 2024
Wouldn’t mind if it dropped a bit more funds available for a top up
From 18 July 2023 - Zotefoams, a world leader in cellular materials technology, is pleased to announce a joint development agreement ("JDA") with a world-leading packer of beverages.
And in the trading update:
The MEL business unit is now predominantly focused on the development of the ReZorce recyclable barrier packaging solution for beverage cartons. Investment in the high-risk, high-reward ReZorce technology is tracking in line with management expectations ahead of commercial trials scheduled for early 2024 and represents a significant proportion of Group costs, which are evaluated continuously in the context of the wider Group performance and the very significant opportunity represented by its target markets.
Zotefoams is clearly diverging into two substantial businesses. The rapid development of ReZorce for a world leading beverage packer is a potentially transformational addition. Yes it is absorbing R&D costs from the polyolefin side, but the upside is huge and the full commercial trials begin in the new year. The fact that implementation of ReZorce into existing end user production lines requires no upgrading is pivotal to its success. Roll on 2024.
Apologies guys , I re read the email, typo on my part it's the 7th not the 6th. So we will get an update tomorrow morning. Let's hope all the sells today were poorly timed and we get a good confident update with a nice rise in SP.
Time for a solid trading update reaffirming that business is strong. It would be good to see a continued strengthening in aerospace orders and evidence of improved supply chain into end markets with conformation that the Polish factory is fully onstream. Any news on progress of the totally recyclable packaging venture would be good. The imminent t/u should provide a stable base for a rerate from here as £2.80 a share hardly reflects the potential here - short medium and long term. Solid company with strong, competent and prudent management.
Agreed. All ZTF trading updates have been at 7am so I'd suggest you either reread your correspondence or re e-mail CFO and see what his 'quick' response is..
Looks like you might want to re-read the CFOs email. No trading update yet today.
Would have been sensible for CFO to schedule the t/u with LSE so it could be added to list of companies giving updates, interims and finals.
Be good to see traction on projects and forecast for 2024.
I emailed the CFO and he got back to me very quickly with a personal response. He stated 6th November for the trading update and reassured me that he understands my concerns around the current decline in the SP, however, if there had been a change to suggest Zotefoams would not meet expectations then an RNS would have gone out sooner. Very impressed he took the time to write back, actually topped up a bit afterwards.
Last year they issued a trading update in mid-October, whereas in the prior two years it was early November. I wouldn't read too much into the lack of a Q3 trading update thus far. Today's news is good for the future but won't have any impact on the Q3 results. Separate RNS means that one doesn't overshadow the other and hopefully the Q3 results will be able to build on today's good news.