PUNT OF THE WEEK

WHAT IS IT?

Makes extremely lightweight foam-sheet materials for a range of applications, including aviation, transporting goods, padding for shoes and cover for prosthetic limbs.

Its customers include Toyota, Boeing, Nasa and Nike.

WHAT’S THE LATEST?

Zotefoams’ products are in demand and sales are soaring. It is trying to add more capacity at US, UK and Polish sites.

A £20.6m fundraising last May means the balance sheet has relatively little gearing.

Operating income covers interest payments more than ten-fold.

WHO BACKS IT?

Leading shareholders include Miton, Schroders and Blackrock, which own around a third of the shares between them.

WHY YOU SHOULD INVEST

Even allowing for the costs of the capacity expansion, it has had a streak of annual profit increases dating back to 2013 and a string of dividend hikes that runs to almost a decade.

AND WHY YOU SHOULDN’T

The biggest risk is still probably posed by the valuation.

A market capitalisation of £28m compares to forecast pre-tax profits of £10m for 2018 and the dividend yield is barely 1pc.