Zotefoams, a leader in cellular materials technology, provides a trading update for the group’s financial year ended December 2022.
The strong trading performance reported in the group’s update of 15th December 2022 continued through to the end of the year and, as a result, the group expects to report full year revenue growth of 26%, to £127.4m (2021: £100.8m), which is ahead of current market expectations.
Profit before tax for the year is now expected to be not less than £12.0m (2021: £7.0m), which is ahead of current market expectations and represents a year-on-year increase of over 70%. This record profit figure is net of the segment loss in the MEL Business Unit increasing to £1.9m (2021: £0.7m), which reflects the continued investment in the development of ReZorce packaging technology.
The group demonstrated strong cash generation, with the year-end leverage multiple (net debt to EBITDA) expected to reduce to approximately 1.16x (2021: 2.06x).
The Company expects to publish its preliminary results for the year ended 31st December 2022 on 21st March 2023.
Commenting on the update David Stirling, Group CEO of Zotefoams, said: “We are delighted to close the year with very strong sales growth, delivering record profits and excellent cash generation. 2022 was characterised by uncertainty and our team has responded well in dealing with these challenges. The Group has delivered growth across all business units.
“We have also continued to invest in the development of ReZorce mono-material packaging which represents a significant commitment to new technology in the sustainability of consumer goods, in line with our own ESG and efficiency initiatives which remain a core focus.
“Whilst the shorter-term macroeconomic climate remains uncertain, we continue to monitor the evolving landscape closely and believe Zotefoams has a strong portfolio of opportunities, a clear strategy and is well positioned to deliver further growth.”