(Alliance News) - Zotefoams PLC on Tuesday said sales growth, particularly of its Azote polyolefin foam products, gave its annual results a big boost.
The Croydon, England-based cellular material technology producer said pretax profit jumped 75% to GBP12.2 million in 2022 from GBP7.0 million in 2021. Revenue increased by 26% to 127.4 million from 100.8 million.
Zotefoams said the positive results were driven by price increases and an increase in sales of its Azote polyolefin foam products. This increase by 25% to GBP70.1 million in 2022, or by 21% at constant currency.
Zotefoams noted that the stronger dollar also bolstered its results, due to its billings in the currency.
Besides the UK, the company has manufacturing sites in the US, Poland, Denmark and China. Zotefoams' products are used in insulation and packaging.
The company declared a 4.62 pence per share final dividend, up 5.0% from 4.40p a year before. This brought the total dividend to 6.80p per share, up 4.6% from 6.50p.
Looking ahead, uncertainty over energy-intensive commodities means Zotefoams is "closely monitoring" input costs and pricing in the polyolefin foam business. Nevertheless, the company cited a strong start to 2023 and expects to see further growth in its Zotek and T-Fit insulation products.
Chief Executive Officer David Stirling said the company "remains confident" about the business's future prospects.
Shares were down 4.2% at 333.30 pence in London on Tuesday morning.
By Sabrina Penty; Alliance News reporter
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Zotefoams (ZTF)