- Cellular materials technology company Zotefoams posted a 45% fall in first-half profit but held its dividend steady, citing cost cutting, while forecasting an improved revenue performance in the second half.

Pre-tax profit for the six months through June dropped to £2.7m, down from £4.9m on-year, as revenue slumped 18% to £34.6m.

Zotefoams left its interim dividend at 2.03p per share.

Chief executive David Stirling said the company had responded quickly and effectively to the Covid-19 crisis, having cut operating costs and capital expenditure.

'In light of the financial performance delivered by the business, as well as our ability to manage profitability and cash generation across a wide range of possible scenarios, the board has sufficient confidence to pay an interim dividend,' Stirling said.

Turning to its outlook, Stirling said the company expected to deliver record sales in the second half, beating the previous best half-year sales of £43.1m.

'Our expectations are based on relatively subdued but stable demand in most polyolefin foams markets other than PPE, where demand is very strong, and a much stronger second half for footwear products and T-FIT technical insulation, continuing the momentum experienced late in the first half,' he said.

'We remain mindful of high levels of uncertainty in most markets as well as political uncertainties around brexit, so these expectations must be tempered with caution, particularly around our assessment of market conditions.'

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