Zotefoams leads London Stock Exchange risers at the close after raising full year expectations

 
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Zotefoams makes foams for use in a range of industries and products (Source: Getty)

A company which makes foam for insulation and padding was the biggest riser on the London stock exchange today, after it raised full-year expectations.

Shares in Zotefoams, which has a market cap of just over £150m, closed up 13.21 per cent at 398.5p after peaking at 400p earlier in the day.

The figures

The group describes itself as a " world leader in cellular materials technology". It manufactures foams for use in vehicles, shoes, medical equipment, packaging and a range of other products.

In a trading update issued this morning, the company said its full year revenues were now projected to be ahead of market expectations.

Group revenue grew 22 per cent in the third quarter, adding up to an average growth rate of 24 per cent for the year so far.

The company also noted that it had a strong order book for the fourth quarter.

Why it's interesting

The Croydon-based company has indicated that it has an increasing global customer base, served by additional facilities in the US and China. The fourth quarter of this year will also see the opening of a new factory in Kentucky.

Resilient demand from overseas has helped to push up revenue this year, with the company benefiting from a weaker pound. However it still notched up double-digit growth of 16 per cent for the third quarter in constant currency.

The company also has a commitment to reducing impact on the environment, meaning it differs from competitors in its manufacturing processes. One technology, MuCell, uses up to 15 per cent less raw material than similar products.

What Zotefoams said

Group chief executive David Stirling said: "Our ambition is to establish ourselves as the world leader in cellular materials technology in our chosen markets. To achieve this ambition, 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."

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