Zotefoams Share Discussion Threads

[money never sleeps] 11/2/2024 21:10

EPRS_BRI(2023)745707_EN.pdf

Useful reference point for proposed legislative changes

[someuwin] 07/2/2024 07:03

Notice of preliminary results and investor presentation



7 February 2024 - Zotefoams, a world leader in cellular materials technology, will announce preliminary results for the year ended 31 December 2023 on Tuesday 19 March 2024.

David Stirling, Group CEO, and Gary McGrath, Group CFO, will be hosting an interactive presentation on Investor Meet Company at 1.30pm on 19 March 2024.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 9am GMT the day before the meeting or at any time during the live presentation. Investors can sign up to Investor Meet Company for free and add to meet Zotefoams plc via:



Investors who already follow Zotefoams plc on the Investor Meet Company platform will automatically be invited.

Separately, an analyst meeting will take place at 9.30am on the day. Analysts interested in attending the presentation should please contact IFC Advisory: [e-mail]

[edwardt] 05/2/2024 16:05

I hear you! Feels the market makers are shifting it to find stock or offload - who knows?!!

[pcok] 05/2/2024 15:39

So Schroders increase their holdings and as the RNS released share price drops. Even after 28 years of doing this PI thing I sometimes feel I don't understand anything. Obviously (to me) any big move in share price could be a leak re reZorce so feeling a bit twitchy. Nevertheless holding tight as a good share LTBH imho.

[money never sleeps] 01/2/2024 16:01

hxxps://www.zotefoams.com/independent-life-cycle-assessment-result-05360-v08182022_download/

For more info click the link and go to link where you can download the report.

[money never sleeps] 01/2/2024 15:58

The quote from NCJ was not in the rns.

Neil Court-Johnston, Vice President of Strategy EMEA at Zotefoams, commented: “We are very pleased to present the results of our recent lifecycle analysis because the numbers speak for themselves clear language. At Zotefoams we are having an exciting time with Rezorce – we have invested a million US dollars in a pilot plant in the USA. Branded companies and retail companies are given the opportunity to carry out tests in a fast-track process and to implement the platform technology before the upcoming statutory deadlines.”

[geraldus] 01/2/2024 14:06

This review was announced in an RNS in September 2022.

[money never sleeps] 01/2/2024 13:45

Thank you. The final quote is a striking one.

Does anyone know what statutory deadlines apply in the US?

[pcok] 01/2/2024 13:06

Sorry can't open the link. Could you paste across please.

[janeann] 01/2/2024 11:49

a review of rezorce ......

edited... and yes it was referred to but thought it helpful to post it here. No idea re deadlines?

[pockstones] 29/1/2024 18:15

Relevance to Zotefoams ?
A check of why the airline industry specifies foam from Zotefoams might be informative information is on the website

[pcok] 24/1/2024 13:57

There could be an element of baby and bathwater here. We have a thriving and growing niche foam design and manufacturing business which is generating the funds for the rezorce r&d and trials and a profit and small dividend. Any new CEO would hopefully have the capacity to grow both or maybe split into two divisions down the track. Internal or external I don't care as long as they are the right person for the job.

[sspurt] 24/1/2024 13:23

I think the new CEO appointment will be a big tell as far as the potential for Rezorce is concerned. Attract a big hitter from the packaging industry would be really positive, an internal promotion not so much. We shall see..

[money never sleeps] 24/1/2024 07:44

No, I don't work in the industry. Are you going to tell me the new product is useless...?

[edwardt] 24/1/2024 07:26

You work in The industry?

[money never sleeps] 23/1/2024 13:15

I sincerely hope the new CEO IS fully focussed on Rezorce. Their non-LPB packaging product promises to be a massive blockbuster which captures a big percentage of a huge global market

I really really really like its environmental credentials and ease of production.

[dubai123] 19/1/2024 19:23

Couldn't agree more what is there to negative about here. This is simply the most compelling investment case They have a growing core business with revenue visibility to 2029 and rezorce that if it pans out the way we hope by simply catching a tiny fraction of the carton market could represent the entire market cap of the company currently. This has been repeated many times. There is no question as to the quality of the product or how it could significantly disrupt the market. From a personal perspective and not a regular poster of these boards I see a big big opportunity here

[disc0dave46] 18/1/2024 15:38

Thanks but that was my point, they haven't appointed a successor.I read shieldbugs post - the new CEO is overly focused on ReZorce

[redartbmud] 18/1/2024 15:12

7 November 2023 - Zotefoams (LSE: ZTF), a world leader in cellular materials technology, announces that David Stirling has informed the Board of his intention to retire from his role as Group CEO and from the Board within the next 12 months. David will continue in his post until a successor is appointed and has committed to remaining available thereafter, to support and advise the business in executing an effective transition in the leadership of the Group. The Board has therefore commenced a formal succession process, supported by global organisational consulting firm Korn Ferry.

red

[disc0dave46] 18/1/2024 14:50

I'm confused, what new CEO?, David Stirling is still the CEO for another 12 months or so isn't he?.

[pcok] 18/1/2024 13:03

Very thoughtful of you both to introduce threads of negativity on such a positive news day.

[clocktower] 18/1/2024 11:00

Do you think he will be selling some or all of his shares shieldbug?

[shieldbug] 18/1/2024 10:50

My main concern here is the departure of David Stirling. I worry that the new CEO is overly focused on ReZorce and neglects the core business. The Chair has only been in place for a year.

[someuwin] 18/1/2024 09:12

Singer Note:

Strong end to the year, c.5% PBT beat

A very pleasing update from Zotefoams with FY23 group sales expected to be £127m, in line with consensus expectations and, reflecting a strong end to the year, adj. PBT is expected to reach £13.1m (+5% YoY), c.5% ahead of our and market expectations. This has been driven by a significant step-up (+21%) in profitability across the foam business units (polyolefin & HPP) reflecting continued progress on mix enrichment, disciplined pricing and operational efficiencies. Ahead of commercial trials in 2024, further investment in ReZorce (fully recyclable & circular barrier packaging for beverage cartons) has led to a £4.1m loss which is consistent with our modelling. The balance sheet remains strong with net debt/EBITDA of c.1.2x. We think Zotefoams is in a good shape ahead of a key year and is one of our top stock picks for 2024. There are clear share price catalysts ahead including updates on the Nike basketball partnership and newsflow on the ReZorce trial. The valuation fails to reflect the group’s upside potential in our view. BUY, TP 480p = c.45% upside.

Excellent progress in foam – 2024 could be another exciting year

HPP sales increased 7% whilst Polyolefin sales dropped 4%. Segment PBT is up 21% overall to £17.1m reflecting mix, disciplined pricing and continued operational efficiencies. We expect this trading momentum to continue into FY24 led by the start of a new running shoe design cycle at Nike. This should support good progress in the road running & trail shoes category, helped further by 2024 being an Olympic year. We also expect further clarity on the basketball opportunity which holds the potential for significant additional volumes. FY24 could also see the long-awaited recovery in the aviation sector where Zotefoams’ lightweight foam solutions put it at a clear competitive advantage. Reflecting strong demand in the USA and to create a better balanced footprint, investment in a second low-pressure autoclave is planned in 2024 alongside increased warehousing space. This c.£10m project will be funded from existing cash resources. We have adjusted our FY24 debt forecasts by c.£7m to £34.8m to reflect this (1.3x net debt/EBITDA ex leases).

ReZorce in-market trials imminent

A FY23 loss of £4.1m is as expected, reflecting investment in Rezorce (a fully recyclable & circular beverage carton) ahead of in-market trials in 1Q24. Successful commercialisation of ReZorce could be transformational for the group – please see our September note for further details (click here).

Core BUY in Industrials sector

We use established sector metrics for EV/sales versus EBIT margin to determine a SOTP for the Polyolefin and HPP businesses based on forward running EBIT margins in each segment. We attribute a £10m value to the MEL business segment reflecting the costs committed to ReZorce (including capitalised development costs). This drives our TP of 480p, 45% upside.