Shares in Zotefoams surged 10% after strong half-year results with revenues up 23% year on year at £59mln and pre-tax profits up 42% to £5.7mln.
Group chief executive officer David Stirling said: "Geopolitical risks are currently much higher than normal,"
"Whilst these have limited direct impact on our operations currently, we are mindful of the risk that they may lead to more significant indirect impacts, especially in supply chain, inflation and demand, rendering forward looking statements particularly uncertain."
"Currently, we are experiencing good demand across our business consistent with our expectations."
Analysts at Peel Hunt noted this reflected solid demand (volumes up 4%), successful pricing initiatives “while FX has provided a useful tailwind.”
The broker said with trading ahead and the outlook supported by positive end markets and helpful mix trends it was upgrading its top of the range full year 2022 adjusted pre-tax forecasts by 6% to £9.3mln.
Peel Hunt kept its buy rating with price target of 400p.
IWG tumbles on concerns over cost pressures and continued lockdowns
Serviced office operator, IWG PLC (LSE:IWG), saw its shares tumble in early trading following half-year results reported on Tuesday, with cost pressures and ongoing disruptions from lockdowns likely to lead to cuts to earnings forecasts.
In the six months to 30 June, adjusted pre-tax losses narrowed to £70.2mln from £163.3mln with system-wide revenues up 22.3% at £1.4bn driven by strong demand for hybrid working.
Chief executive Mark Dixon said: "”We look forward with cautious optimism to the remainder of 2022."
Shares fell 14.61% to 165.80p
Danni Hewson, financial analyst at AJ Bell said: “IWG’s latest results indicate progress in the business, with improvements in both occupancy rates and pricing.”
“Unfortunately, it cannot escape the cost pressures hurting companies worldwide.”
“Neither can it be relaxed about Covid as certain markets continue to experience lockdowns, which has a negative impact on demand for some of its serviced offices.”
“The market did not like the results, with the shares diving more than 17% in early trading.”
“Before the numbers came out, analysts had forecast IWG returning to profit this year at £48.6mln.”
“Given the ongoing cost pressures and lockdown disruptions, it seems likely this estimate will have to be scaled back” Hewson concluded.