Zotefoams adopts progressive dividend policy

8th Mar 2011 11:22

High-performance foams supplier Zotefoams says that it intends to adopt a progressive dividend policy following a strong profit performance in 2010. Zotefoams increased its final dividend by 5% to 3.15p a share. The total dividend for the year is 4.65p a share. The dividend is covered just over two times by earnings. The company has gone from a net debt position to net cash of £1.86m at the end of 2010 so it can afford a progressive dividend policy.Revenues grew from £31.8m to £39.9m in 2010. The growth came from all around the world but Asian revenues grew 79%. Raw material costs increased but that was offset by improved efficiencies and additional volumes. Operating margins rose from 10.7% to 12.4%. Underlying pre-tax profit improved from £3.16m to £4.7m. The pension deficit was reduced from £5.78m to £4.96m. Order levels have been strong this year, including the first orders for microZOTE roll foam and Pebaxfoam, a high energy-return elastomer for the sports market, but raw material prices are rising.