Updates

Zotefoams

April 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

In ‘normal’ times, if Zotefoams said it had reported sales up 22% to £100.8m and a rising proportion of sales were higher margin products, you would have seen operating margins head into orbit. But these are far from normal times with the business seeing cost price inflation for energy, freight and polymers, which caused gross margin to decline to 26.4% (from 33.6%). Consequently, Zotefoams’ pretax profit ended down 16% to £7m with eps down 39% to 9p - but it’s not a total surprise. As the company says, prices for its key raw material polymer pellets are up 60% year on year - when polymer prices have risen historically, it would encourage stuff to be brought in from Turkey, Iran or the Middle East but because freight costs are so high, i ...

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Zotefoams (April 2023)

Zotefoams - Big capex plans come to an end (September 2021)

Zotefoams (March 2021)

Zotefoams (September 2020)

Zotefoams - New contract worth possibly 10% to sales (July 2020)

Zotefoams - New capacity eases bottleneck (May 2020)

Zotefoams (February 2018)

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

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