Zotefoams FY profit seen ahead of expectations after record Q3 sales

13th Oct 2022 11:33

(Sharecast News) - Zotefoams rallied on Thursday after it said full-year pre-tax profit was set to be "significantly ahead" of market expectations following a record third-quarter sales performance.

The company, a specialist in cellular materials technology, said third-quarter revenues were ahead around 27% on the same quarter a year earlier. In the year to date, group revenues are approximately 24% higher.

Zotefoams said it continues to benefit from its "broad customer diversification" and has seen continued resilient demand across most of its end market segments.

"Both revenues and margins are also seeing an increasing benefit from pricing actions implemented earlier in the year, in response to cost inflation, as well as from a weaker sterling exchange rate, primarily against the US dollar," it said.

The group added that demand into the final quarter remains encouraging and it has good visibility of confirmed orders for the rest of 2022.

"Based on its current sales forecasts and foreign exchange rates, and subject to there being no material disruption to the business, the board now expects adjusted profit before income tax to be significantly ahead of market expectations," it said.

Market expectations are for pre-tax profit of £9.3m for the year to the end of December 2022.

At 1130 BST, the shares were up 25% at 292.04p.