Zotefoams Share Discussion Threads

[battlebus2] 09/3/2012 08:44

Rocketing this morning. :))

[battlebus2] 07/3/2012 22:16

Aerospace insulates Zotefoams
By Lee Wild, 06 March 2012

Selling foams used in car wing mirrors and for packaging made Zotefoams a large chunk of its money last year. Underlying pre-tax profit grew 16 per cent to £5.5m, driven by widespread demand across its developed markets. And excitement surrounding its high performance products (HPP) is building, too.

Indeed it should. Commercial costs and investment meant the division lost over £707,000 in 2011, but managing director David Stirling believes the high-margin unit could one day make up half the business. Zotefoams already supplies the big aircraft manufacturers with lightweight insulation, ducting systems and trim - essential kit for new fuel efficient planes. Confirmed orders for HPP so far in 2012 already exceed last year's sales of £2.4m. And Zotefoams is having trouble keeping up with demand at technology licensing operation MuCell.

For now, though, 92 per cent of sales come from polyolefin foams. They rose 10 per cent to £40.5m, driving operating profit up 18 per cent to £6.3m. Strong demand in the UK, France and America offset weakness in Asia following the tsunami and issues with supply of its core raw material low density polyethylene (LDPE). The cost of LDPE has risen sharply, but Zotefoams' skill at passing on cost increases kept gross margin steady at 29 per cent.

Broker Investec expects adjusted pre-tax profit of £5.8m and EPS of 11.8p this year (from 11.6p in 2011).

ZOTEFOAMS (ZTF)
ORD PRICE: 145p MARKET VALUE: £57.8m
TOUCH: 143-147p 12-MONTH HIGH: 159p LOW: 102p
DIVIDEND YIELD: 3.4% PE RATIO: 12
NET ASSET VALUE 89p* NET CASH: £1.9m
Year to 31 Dec Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2007 31.6 3.37 8.00 4.50
2008 34.8 3.93 8.30 4.50
2009 31.8 2.75 5.90 4.50
2010 39.9 5.32 11.8 4.65
2011 44.2 5.47 11.8 4.90
% change +11 +3 - +5
Ex-div: 25 Apr

Payment: 23 May

*Includes intangible assets of £5.7m, or 14p per share

IC VIEW:

A forecast PE ratio of 12 is undemanding given the strong order book and obvious potential for significant growth in HPP. Buy.

Last IC view: Buy, 147.5p, 3 August 2011

[pj 1] 07/3/2012 21:40

Yeah I got it wrong, but no one is giving any figures/ forecasts??????????????????

[battlebus2] 07/3/2012 20:54

That's really strange while i was telling you about my purchase in MTT this morning you were posting here lol. Great minds think alike!

[mudbath] 07/3/2012 20:48

Nice action battlebus2 !!

[battlebus2] 07/3/2012 20:37

Did you not read the report it mentions the strategy for the future growth. Anyway a great day and many more to come.

[pj 1] 07/3/2012 08:48

I'm totally sat on the fence with this one. I look for at least 20% medium term and despite my initial comments yesterday I almost bought pm. What growth are you predicting and why? PJ

[philanderer] 06/3/2012 11:50

Investec initiates coverage with 'buy' ... target 173p

[pj 1] 06/3/2012 11:30

Ignore prev comments ref valuation, having another look

[pj 1] 06/3/2012 10:01

Good company but starting to look overvalued to me. share price fluctuations probably reflect that. IF share price falls back 20% I would buy. Keeping an eye on it but its not now top of my watch list. Good luck

[topvest] 06/3/2012 09:51

Good results and encouraging outlook. It is starting to feel like their investment over the last 5 years in new technologies is starting to pay off.

[cambium] 06/3/2012 08:07

Subject:




DJ Zotefoams 2011 Revenue Up 11%, Confident For 2012




LONDON (Dow Jones)--Zotefoams PLC (ZTF.LN), a cellular material technology firm, Tuesday posted a 23% rise in 2011 pretax profit on an 11% rise in revenue and said it is confident for 2012 as its order book already comfortably exceeds sales made in 2011.

MAIN FACTS:

-Revenue up 11% to GBP44.21 million (2010: GBP39.88 million)

-Operating profit GBP5.6M (2010: GBP4.8 million)

-Profit before tax and exceptional items up 16% to GBP5.47 million (2010: GBP4.70 million)

-Pretax profit GBP5.5 million (2010: GBP5.3 million)

-Earnings per share 11.5 pence (2010: 11.5 pence)

-Although the company is entering a year of increased capital expenditure to expand capacity, the board proposes a 5% increase in proposed final dividend to 3.30 pence per share (2010: 3.15 pence)

-Would make a total of 4.90 pence per ordinary share for the year (2010: 4.65 pence), an increase of 5.4%

-Net funds of GBP1.92 million at the end of 2011 (2010: net funds of GBP1.86 million).

-The outlook for the company's High-Performance Polymers foams is even more promising with confirmed orders for 2012 already ahead of HPP sales in 2011

-Board is therefore very confident about the prospects for our business and expects 2012 to be another year of further progress.

-Continues to work to improve our energy efficiency to mitigate the impact of increased prices.

-Shares closed Monday at 137.5 pence.



By Iain Packham, Dow Jones Newswires.

[battlebus2] 06/3/2012 07:46

Very pleased with results at first glance. The future looks increasingly better imv.Outlook

We begin 2012 with a strong order book for both Azote(R) polyolefin foams and our portfolio of HPP products. Following on from a record sales year in 2011, orders for Azote(R) foams for the first quarter are well ahead of the comparable period last year. The outlook for our HPP foams is even more promising. Particularly pleasing at this time, is the forward visibility for ZOTEK(R) F fluoropolymer foams with confirmed orders for 2012 already ahead of total sales of all HPP products in 2011. Our largest customer for ZOTEK(R) F, supplying into the aviation industry, has also placed orders for 2013 which exceed those of 2012. The market development of T-Tubes(R) advanced insulation systems has also been very encouraging with orders from repeat, as well as new, customers and enquiries running at record levels. We believe that the newer products within our HPP portfolio have significant potential: ZOTEK(R) N nylon foams, microZOTE(R) roll foams and Pebaxfoam(R) will all accelerate their market acceptance in 2012. Although development timelines for all HPP products are long and assessing the outcome can be uncertain, we are pleased that the current 2012 order book already comfortably exceeds sales made in 2011.

MEL has begun the year with high levels of interest from potential licensees, in particular from manufacturers of film and high-density flat sheet, and we are increasing staff levels to support this activity. The MuCell(R) brand is now well known in many fields of plastic extrusion, representing deliverable, raw material savings from a clean and environmentally friendly process. MEL's patent portfolio is growing strongly from a combination of internal developments and licensing of external patents in specific areas.

Following the weaker polymer prices experienced in late 2011, prices for LDPE, our main raw material, have increased recently towards the levels seen in the first half of 2011. Currency rates now are not materially different from last year's average rates. However, energy prices have risen significantly since 2011 and we continue to work to improve our energy efficiency to mitigate the impact of increased prices. Energy costs in 2011 were 4% of sales.

The Zotefoams' businesses are performing well and we are looking to continue our record of investing for the future. We are now at the latter stages of assessment of the viability of a foam-expansion facility in Asia, either directly or as a joint venture. To support the opportunities evident across our business, 2012 will also see a significant increase in capital expenditure, to approximately GBP7m, to restructure our Croydon site, adding a new factory building and investing in extrusion capacity which is expected to be operational during 2012.

Zotefoams is an international business, operating across a wide variety of industries and serving many end-use markets with a growing variety of speciality products and solutions. We are of course influenced by global economic factors as well as the uncertainty associated with developing new products and markets. However, we enter 2012 with an exceptionally strong order book, a robust cash position, and the benefits of our considerable investments made in people and products in recent years. The Board is therefore very confident about the prospects for our business and expects 2012 to be another year of further progress.

Nigel Howard

[gleach23] 17/2/2012 13:55

cheers battlebus - if market sentiment holds up i suspect there will be more in this but looking at the chart it's had a good recent run and chart gets quite busy around this level

[battlebus2] 17/2/2012 13:01

Good luck Gleach23 profits are always welcome!

[gleach23] 17/2/2012 12:43

i suppose it depends what your strategy is - ie whether you're tempted to trade or ride out the bumps and hold long term

i was tempted into the former today, expecting a pullback...so cue a David Schwartz tip in the FT this Sat - it's happened to me twice this year with Vislink and Carclo ;-)

gla

[battlebus2] 16/2/2012 17:50

Plenty of headroom yet i believe.

[gleach23] 16/2/2012 12:37

ooh...seems it does have some steam...nice and steady too ;-)

[gleach23] 16/2/2012 09:40

i'm still hanging in here battlebus but it's at an interesting point now. i'm tempted to sell for a modest profit after such an impressive rise but results due on mar 6th. i'd like to think it could test the highs but wondering how much steam there is left in it for the next couple of weeks...

we know how it can spike around...if some steam comes out of the wider market it could easily lose 20p...thoughts?

[battlebus2] 15/2/2012 19:01

Marked up on 1k is very positive .

[battlebus2] 14/2/2012 17:37

Hi Mudbath long time no see! Are you into these?

[mudbath] 14/2/2012 17:25

Nice action today !!

[battlebus2] 14/2/2012 17:23

Tasty tasty TASTY!

[electronica] 08/2/2012 08:48

Looking good for 12 month highs after thye Prelims on 6th March.

[battlebus2] 08/2/2012 08:19

Looks like another good day ahead.