Zotefoams (ZTF)

Sector:

Industrial Chemicals

Index:

FTSE Small Cap

438.00p
   
  • Change Today:
    -12.00p
  • 52 Week High: 500.00
  • 52 Week Low: 353.00
  • Currency: UK Pounds
  • Shares Issued: 48.62m
  • Volume: 12,778
  • Market Cap: £212.96m
  • RiskGrade: 186

Zotefoams halts dividends to conserve cash

By Sean Farrell

Date: Tuesday 07 Apr 2020

LONDON (ShareCast) - (Sharecast News) - Zotefoams has put dividends on hold after the Covid-19 crisis added to market pressures that caused profit to fall in 2019.
The maker of foam products said it would not propose a final dividend for the year to the end of December because of the "extraordinary uncertainty" created by the Covid-19 outbreak. It will keep hold of the cash to support its financial position during the crisis.

The group's annual operating profit excluding an exceptional item fell 21% to £9.1m in 2019 as revenue edged down to £80.9m from £81m. Profit fell because demand for its polyolefin foam products dropped sharply in the second half of the year as economic growth slowed and uncertainty increased.

The company said that since late March conditions had stayed difficult with customers uncertain, demand subdued and customers demanding rapid response times. Zotefoams is cutting costs and considering taking government support.

Zotefoams is based in the London suburb of Croydon with manufacturing operations there and in Kentucky, USA. Its main business is makes polyolefin block foams for use in products ranging from air conditioning systems and cars to camping mats and cricket pads.

The company said: "The challenging market conditions experienced in the latter part of 2019, particularly within our polyolefin foams business, have yet to improve noticeably. Adding to this, the outbreak of the Coviud-19 virus is causing additional disruption.

"We are focused on minimising cash outflows and strengthening our financial position in the short term. As such, the board believes it is prudent not to recommend a final dividend."

Zotefoams said it would decide when to start paying dividends again as conditions stabilise. The company said it believed it had enough liquidity to get through the crisis.

The company's shares rose 20% to 190p, helping lead a wider increase in UK small-cap companies at 09:55 BST.







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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Zotefoams Market Data

Currency UK Pounds
Share Price 438.00p
Change Today -12.00p
% Change -2.67 %
52 Week High 500.00
52 Week Low 353.00
Volume 12,778
Shares Issued 48.62m
Market Cap £212.96m
RiskGrade 186

Zotefoams Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
31.28% below the market average31.28% below the market average31.28% below the market average31.28% below the market average31.28% below the market average
66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average66.67% above the sector average
Price Trend
35.47% below the market average35.47% below the market average35.47% below the market average35.47% below the market average35.47% below the market average
44.44% below the sector average44.44% below the sector average44.44% below the sector average44.44% below the sector average44.44% below the sector average
Income
66.06% below the market average66.06% below the market average66.06% below the market average66.06% below the market average66.06% below the market average
Sector averageSector averageSector averageSector averageSector average
Growth
5.37% above the market average5.37% above the market average5.37% above the market average5.37% above the market average5.37% above the market average
44.44% below the sector average44.44% below the sector average44.44% below the sector average44.44% below the sector average44.44% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Zotefoams Dividends

  Latest Previous
  Final Interim
Ex-Div 06-May-21 10-Sep-20
Paid 01-Jun-21 09-Oct-20
Amount 4.27p 2.03p

Trades for 29-Jul-2021

Time Volume / Share Price
16:35 44 @ 445.00p
16:35 265 @ 438.00p
16:29 37 @ 445.00p
16:29 7 @ 445.00p
16:29 159 @ 441.00p

Zotefoams Key Personnel

CEO David Stirling
Finance Director Gary McGrath

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