Zotefoams expects annual profit at top of expectations

Zotefoams said it expected annual profit at the top of market expectations after the maker of foam products traded strongly in the third quarter.

Revenue for the year will be higher than analysts expect after growth of 22% in the three months to the end of September. Stripping out currency movements, sales rose 16% in the third quarter with growth across all Zotefoams' businesses.

The company said a strong order book for the fourth quarter gave it confidence revenue would beat expectations for the year and that adjusted pretax profit to be at the top of market forecasts.

Shares of Zotefoams shares rose 7.9% to 379.75p at 09:35 GMT.

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

David Stirling, Zotefoams' chief executive, said: "We are delighted with the strong organic growth achieved across all business units during the third quarter of 2017. We are investing significantly in new equipment and enhanced business capability. The board is confident of another year of positive progress and about the long-term prospects for the business."