Zotefoams looks to earn £25m

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The Independent Online
Zotefoams, the Croydon based company, which makes foam used in neck braces and army helmets, is looking to raise £25m from the sale of half of its ordinary shares.

The pathfinder prospectus for the flotation, which is expected to value the company at £50m, was published yesterday.

The venture capitalists who invested in the 1992 management buy-out from BP will see their £600,000 investment in the ordinary shares of the company rise in value to £21m.

The venture backers are 3i, Prudential Venture Managers and Charterhouse, which will keep the majority of their ordinary shares.

The money raised will finance the repayment of £9.2m of preference shares, also owned by the venture capitalists, and net bank borrowings of £4m, giving the company an ungeared balance sheet.

The company has seen turnover grow by 30 percent since it was sold by BP to the managers for £20m.