Secondary Recommendation

Zotefoams - Maker of foam blocks smashes forecasts, eyes promotion to Small Cap index

May 2011

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.

While the long-term decline in UK manufacturing has been well-documented, there are little pockets of healthy activity if you know where to look and we recently visited the head office of Croydon-based Zotefoams, a manufacturer of specialist and high performance blocks of foam for packaging applications. Uninspiring business you might think! But our visit was well-timed given that Zotefoams had just announced final results, which showed pretax profit an impressive one-third higher than forecast. Fully-listed Zotefoams makes blocks of polyethylene foam by a unique process, which involves placing polymer (plastic) sheets into large high-pressure cylinders where they are “impregnated” with pure nitrogen. Finance director, ...

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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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