Zotefoams Share Discussion Threads

[battlebus2] 30/6/2014 07:07

Looks like we are going all out with the new MEL technology....A good update imv.

High single-digit percentage volume growth in its Polyolefin business.
A very strong performance in our High-Performance Products business with growth approaching 50% in constant currency. Revenue from our MuCell Extrusion ("MEL") technology licensing business is expected to be at similar levels to the first six months of 2013

Trading Update

30 June 2014 - Zotefoams, a world leader in cellular material technology, is issuing this trading update for the first six months ended 30 June 2014.

For the first six months of 2014 the Company expects to have experienced high single-digit percentage volume growth in its Polyolefin business. We also expect a very strong performance in our High-Performance Products ("HPP") business with growth approaching 50% in constant currency. Revenue from our MuCell Extrusion ("MEL") technology licensing business is expected to be at similar levels to the first six months of 2013, although activity levels are high and the forward order book for machinery gives us confidence in our growth expectations for this business.

Recent technical innovations at MEL have shown extremely promising results in foaming a variety of polymers outside MEL's core focus on the consumer packaging market. Many of these materials are used in technical applications and have synergy with Zotefoams' HPP business but require further technical and market development. Given their longer-term nature Zotefoams has decided that the best way to exploit these innovations is to develop further expertise at its Croydon, UK site. This allows MEL to retain focus on existing products and markets while benefiting from our UK-based marketing and technical personnel.

Zotefoams' existing microZOTE(R) extrusion line, which was initially specified for the dual purposes of development and manufacturing, will now be used as a development line with manufacturing activity on this line curtailed. Following this decision by the Board the Company will take a one-off charge which is expected to be approximately GBP1.2 million for the write-down of these assets. This charge, which will have no cash effect, will be treated as an exceptional item in the Group's financial results for the six month period to 30 June 2014.

As a predominantly UK-based exporter we are influenced by raw material prices and currency. For the year to date the average euro price of our main raw material, LDPE (low density polyethylene), has been similar to the average euro price for 2013. With the strengthening of sterling in 2014 compared to 2013 we will benefit slightly from purchasing LDPE in euros although this will be outweighed by the impact on our foreign currency sales and assets.

Overall the Board remains confident of a satisfactory outcome for the year and continued progress in the future.

The Company expects to announce its interim results for the six months ended 30 June 2014 and provide an update on current trading on Tuesday, 12 August 2014.

[battlebus2] 19/6/2014 22:44

Thank you Exbroker.

[exbroker] 19/6/2014 22:40

The trade today was a fund to fund.

[battlebus2] 19/6/2014 10:14

Yes not sure what to make of it though they did lower the mid late on yesterday to accommodate it, exbroker may have a view. Not long to the trading update if they release on as per last year 8th July.

[janeann] 19/6/2014 09:31

and a 213000 share trade at mid price.

[battlebus2] 18/6/2014 12:22

Late reported 20k buy at 247.75, can't be much stock around now.

[battlebus2] 17/6/2014 15:02

Continuing to rise :))

[exbroker] 16/6/2014 20:10

Hi All
I dont want to dampen any fireworks re indexing but as it has failed for liquidity it wont make the index until next June if it passes next year, which given it failed by less that 200 shares on one day seems likely.I hold a very large number and have not sold any, might buy some more if there is a decent seller around.

[battlebus2] 16/6/2014 15:42

Quoting 238.5 to sell 5k ATM

[battlebus2] 16/6/2014 13:35

Good to see these moving in the right direction.
Janeann everything has worked to plan so far and we have taken all the help available, thanks.

[investoree] 16/6/2014 10:20

Well done janeann with your well timed purchase. Like you I have just topped up with another 1,500 albeit at a slightly higher price than yours. ZTF's technology appears compelling and hopefully they will be included in the next index reshuffle which should see more Institutional interest and hopefully a rerating.

[janeann] 16/6/2014 08:24

well I hope so; would be surprised if there were much downside here.

Trust all well with you and you are now (re) settled?

[battlebus2] 16/6/2014 08:19

Morning janeann a timely purchase.

[janeann] 16/6/2014 08:14

well I managed to pick up 1500 this am; not responsible for the single share purchased though!

[battlebus2] 16/6/2014 08:09

Yes funny isn't it, just shows how far we have come Underhill. Quotes this morning 238 to buy 1k and 240 for more with selling 5k at 233. Looks to me like we are going higher :))

[battlebus2] 13/6/2014 18:11

Nice late reported 18k purchase at 236, seems a wise buy to me :))

[2breakout] 13/6/2014 16:32

Come Jan can start selling to others as well.

[battlebus2] 13/6/2014 16:27

No reason that i can see, these will bounce very quickly imv. When you think about it these are back to the level before the new packaging tie up with Unilever was announced. Just a tree shake to get stock and once the buyers return up we will go. Spread has just opened up to 8p so they don't want buyers imv.

[2breakout] 13/6/2014 16:14

This seems to have fallen way too much so have bought some at 235p. What's the reason, just not going into index or could there be other problems? New packaging seems excellent.

[battlebus2] 13/6/2014 13:32

In freefall now with 7k sold at 220, waiting to add again. Dividend nearly 2.5%.

[battlebus2] 13/6/2014 12:35

Never expected these to fall back to 230 and still falling on circa 60k shares sold.

[exbroker] 11/6/2014 14:26

There was some indexing premium in the price, now long gone.Not that much of the loose stock has come out yet they may drift lower, time to buy is when the first inst buyer steps in and clears stock from the market.

[battlebus2] 10/6/2014 19:11

Yep , the fall is overdone now imv, any buying should see these bounce.