LONDON (ShareCast) - (ShareCast News) - Foam maker Zotefoams saw its shares drop as a strong set of first-half results was held back by currency movements.
Zotefoams, whose products are used in the sports, packaging, transport, toys, building and the military sectors, said profit before tax was up by 88% to £3.02m from £1.61m, thanks to growth in all business segments.

Total revenue was up by 8% to a record £26.6m for the first half of the year, led by strong MuCell Extrusion sales which were up by 38%.

Basic earnings per share were 5.5p, up from 3.2p in the first half of 2014, and the director's increased the interim dividend by 3% to 1.80p per share from 1.75p.

Zotefoam noted foreign exchange headwinds had impacted results, and said revenues would have been up by 10% in constant currency.

Investec, which held a 'hold' rating on the stock' and a price target of 325p said the company was making good progress. Analyst Thomas Rands left forecasts unchanged due a positive order book and despite currency headwinds and higher polymer prices.

N + 1 Singer said in a note the investment in manufacturing in Kentucky was on track and this was important. "FX has a major impact on Zotefoams but underlying story is on track and remains a core portfolio holding with the excitement of the MuCell growth opportunity," N + 1 Singer said.

Shares in the company fell by 3.57% to 290.25p by 1048 BST.

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