REG - Zenova Group PLC - Interim Results

ZenovaAnnouncement

29/08/2025 12:45

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RNS Number : 2747X  Zenova Group PLC  29 August 2025

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29 August 2025

Zenova Group PLC

("Zenova", the "Company" or the "Group")

 

Unaudited Interim results for the six months ended 31 May 2024

 

Zenova Group PLC (AIM: ZED), a provider of innovative fire safety and heat
management technology and products, today announces its unaudited interim
results for the six months ended 31 May 2025 (the "Period").

Financial highlights for the Period

·    Sales for the six months to 31 May 2025 increased 60% to £85k over
same period in 2024 (£53k).

·    Gross margin for the six months to 31 May 2025 of 43% (2024: 42%).

·    Operating loss for the six months to 31 May 2025 reduced to £403k, a
35% improvement on the 6 months to 31 May 2024 (loss of £617k)

·    Loss after taxation reduced to £302k, a 37% improvement on the six
months to 31 May 2024 (loss of £478k).

·    Loss per share for the Period of -£0.15 (2023 -£0.40).

 

Sales & key contract highlights for the Period

·    Expansion into the Spanish market with new distribution channel and
orders across multiple product suits.

·    The All-England Tennis & Croquet Club Wimbledon supplied order of
Zenova FX extinguishers.

·    Robert Price Ltd, the largest building merchant in South Wales,
placed a substantial restock order for Zenova paints and coatings.

·    Zenova is securing international sales, including deliveries of 6L FX
extinguishers to the Czech Republic Customs Authorities through the newly
appointed distribution partner Proteng.

·    Zenova is significantly ahead of its self-imposed internal target of
selling 1,000 6L FX extinguishers per month, a milestone it has already
achieved in the first month, with multiple customers placing recurring orders.

 

CEO's Statement

Dear Shareholders,

The first half of 2025 has been a period of real progress for Zenova. We have
moved beyond product development into commercial execution, with our solutions
now deployed in multiple markets and winning recognition from blue-chip
customers and international distributors alike. Importantly, the
infrastructure we have built in sales, distribution and manufacturing means
that we are now positioned to scale up rapidly.

Laying the foundations for growth

Zenova has launched a full suite of innovative, certified products that set
new standards in fire safety and heat management products. These solutions
address pressing global challenges, from wildfire prevention to energy
efficiency and safer buildings. Our product portfolio, which spans
fire-retardant paints and renders to next-generation fire extinguishers and
wildfire barriers, has already secured orders across the UK, Europe, and
beyond.

During the period, we achieved strong commercial traction: restock orders with
established distributors such as Robert Price Ltd, expansion into Spain
through a new national distributor, prestigious adoption at Wimbledon, and
recurring demand for our FX extinguishers, where we exceeded internal sales
targets immediately. With distribution agreements now covering Europe, North
America, Latin America and India, Zenova's global footprint is expanding
quickly, and we expect these channels to deliver increasing volumes in the
months ahead.

Scaling capacity to meet demand

Our supply chain has been significantly strengthened with outsourced
manufacturing capacity in the UK, Europe and North America. The commissioning
of our new Albanian joint venture facility ahead of schedule marks a milestone
for Zenova, providing additional capacity to serve both regional and
international demand. With an expected contribution of over €2 million in
its first full year, this facility is just one example of how we are preparing
for scale.

Financial trajectory improving

The benefits of this sales traction are just beginning to be felt. Revenues
grew by 60% year on year, gross margin increased, and operating losses
narrowed by more than a third thanks to disciplined cost control. Order levels
and forward visibility are now running at 400% to 500% above the comparable
period last year, reflecting the accelerating commercial traction of our
product portfolio. With additional funding secured in February and August,
supported by both institutional investors and management, we now have the
adequate resources to fully exploit these emerging opportunities and
accelerate growth.

Trading update

Since the half-year end, Zenova has already executed sales of approximately
£50,000, with a further £130,000 of confirmed orders currently being
fulfilled in-house. In addition, the Company has visibility on an additional
£120,000 of orders expected to be executed by the financial year end in
November.

Crucially, this demand is being driven by Zenova's PFAS-compliant fire
extinguishers, which meet the latest regulatory and environmental requirements
and position the Company ahead of the industry's transition away from legacy
products.

Combined, these executed and expected orders represent a step-change in
trading, equating to 400%-500% growth compared with the same period last year.

This progress is further supported by the recent working capital fundraise,
which strengthens Zenova's ability to meet growing demand and to aggressively
pursue further promising customer interest and deliver against its order book.
Together, these developments provide a solid platform for continued revenue
growth and underpins management's confidence in delivering a stronger second
half .

 

Thomas Melchior

Chief Executive Officer

Zenova Group PLC

30 August 2025

 

Operating Update

1.    About Zenova Group PLC

Zenova Group is the holder of intellectual property that underpins a suite of
fire safety and temperature management products and technology. The product
range is applicable to industrial, commercial, and residential markets. The
Group's products include fire retardant paints and coatings, insulating paints
and render, fire extinguishing fluid and fire extinguishers. Through
innovative development, and a refined formulation and development process,
Zenova provides industry leading solutions across a range of fire protection
and temperature management problems.

2.    Product Portfolio Highlights

Zenova has now successfully launched its full suite of core products:

·    Zenova FP: fire-retardant coating

·    Zenova IP: insulating coating

·    Zenova IR: insulating render

·    Zenova FX500: 500ml aerosol fire extinguisher for all fire types

·    Zenova FX6L and FX9L: multi-purpose fire extinguishers (certified)

·    Zenova FX6L Chrome and FX9L Chrome, multi-purpose fire extinguishers

·    Zenova FX2L multi-purpose fire extinguishers

·    Zenova CS, ceiling-mounted automatic fire extinguisher

·    Zenova FX Fluid: certified universal fire-extinguishing agent

·    Zenova WB: eco-friendly, non-toxic wildfire barrier

3.   Products & Solutions

Zenova has developed a range of products providing fire safety and heat
management solutions for a wide range of sectors and environments.

   Zenova FP, fire protection paint

   A water based, fire protection paint (also known as a 'thermofoaming' or
   'intumescent' paint), which can be used on any surface and colour matched to
   any colour. When exposed to heat or flames, the paint expands and creates a
   solid foam-like crust which will not burn and insulates the surface it is
   painted on. This prevents surfaces from catching fire and stops fire
   spreading.  It has been tested by global fire industry experts and complies
   with UK building regulations and the latest UK and European fire safety
   standards.
   Zenova IP, thermal insulation paint

   A thermal insulation paint embeds the most modern insulating technology in a
   thermos-like ultra-thin layer. It saves energy by increasing the thermal
   insulation level in commercial and residential buildings.  Zenova IP has been
   independently tested and validated to deflect, absorb and dissipate up to 75%
   of this heat, thereby reducing the inside temperature by up to 45%.  Suitable
   for both exterior and interior surfaces, on any type of surface.
   Zenova IR, thermal insulation render

   Zenova IR is a ready mixed insulation render that can be applied to internal
   and external walls in commercial and residential buildings to provide
   immediate insulation benefits and can be colour matched to any colour.
   Zenova FX, fire extinguishers

   A fire extinguisher like no other. Zenova FX extinguishers are PFAS compliant,
   effective and safe to use on all types of fires. Fully tested to European
   EN3-7 as well as British standards, Kitemark, MED and MER, the Zenova FX
   extinguishers are certified for class A, B and F as well as being safe for use
   on electrical fires. Available in 2, 6 and 9 litre sizes.
   Zenova FX500, aerosol fire extinguisher

   The Zenova FX500 is a high-performance handheld fire extinguisher that is
   tested by independent experts and adheres to the highest industry
   standards. Safe for use on any type of fire, the Zenova FX500 reduces the
   risk of reignition. The Zenova FX 500 is quick, easy and safe to operated and
   has been fire tested to BS6165 standard.
   Zenova CS, automatic ceiling sprinklers

   The Zenova CS provides ceiling-mounted fire protection for new builds and can
   be easily retrofitted into any existing environment to address all types of
   fire risks.
   Zenova WB, wildfire barrier

   A wildfire barrier fluid (applied via spray wands or aerial drops), which
   provides a virtual barrier where fire simply will not burn. Repeated tests by
   the Wildfire Laboratory at Exeter University on a variety of extremely dry
   wildfire fuels (grasses, hays, brush) confirms the incredible fire resistance
   Zenova WB provides, while remaining viable after application for 30+ days in
   dry conditions.

4.    Sales

Zenova sales strategy is currently concentrated on large business-to-business
accounts in sectors such as construction, manufacturing, industrial and public
sector bodies. Zenova targets sales to the end user, by appointing
sub-distributors and sales agents on a national and international level.

Zenova focuses on product demonstrations and trials with key clients to
leverage the networks and accredited industry specific consultants to
penetrate large businesses, and public sector bodies.

Sales routes:

·    Key account sales

·    Direct sales

·    Sales agents

·    Sub distributors for paint sales and distribution

·    Fire management experts and advisors

·    International sub distributors

5.    Sales and distribution network

Zenova expands global sales and delivery capabilities through appointment of
sales and sub-distributors for major market access. Zenova has secured some
cornerstone agreements within key sectors which are expected to develop into
large, longer-term sales from these partnerships.

Zenova has entered into several international sub-distributor agreements in
various territories globally. These contracts include an annual commitment
to purchase a minimum quantity by value of Zenova products.

Zenova's growing global sales and distribution footprint now covers all major
markets including:

·    UK

·    Germany

·    Austria

·    Switzerland

·    Albania

·    Poland

·    Spain

·    Portugal

·    Romania

·    Czech Republic

·    Slovak Republic

·    USA

·    Latin America

o  Chile

o  Panama

·    India

Newly appointed distributor for the Czech and Slovak Republics, Proteng is
already delivering first orders.

6.    Manufacturing

Zenova has strengthened its supply chain and now has reliable, scalable,
outsourced manufacturing partners for all Zenova products in the UK, Europe
and in North America which are ready to increase production to meet Zenova's
growth projections.

Manufacturing is subcontracted to specialist manufacturers in each category of
product.  Zenova sources and approves the manufacturing components and
processes used by the manufacturers in advance of first production. Zenova
maintains responsibility for ongoing manufacturing oversight and
implementation of manufacturing strategy based on forecasted product supply
and demand levels. The manufacturing process for all products and the time
scale to produce finished goods is optimized. Zenova has entered manufacturing
contracts with manufacturers to produce the initial volumes of its paints,
primers, render, firefighting fluid and fire extinguishers.

Zenova has partnered with manufacturers in the following locations:

·    Zenova
FP
UK & Canada & Albania

·    Zenova
IP
UK & Canada & Albania

·    Zenova
IR
UK & Canada & Albania

·    Zenova FX500
                UK & USA

·    Zenova FX6L & FX9L
Poland

·    Zenova
CS
UK & Albania

·    Zenova FX fluid
                Poland & Canada & Albania

·    Zenova
WB
Poland & Canada & Albania

All production facilities are designed to scale up rapidly to meet expected
growth in demand for Zenova products worldwide.

Zenova and AED formed a joint venture to establish manufacturing facility in
Albania amid growing regional demand

·    JV expected to generate over €2m over the first full year of
Operations (April 2025)

·    New factory facility in Albania now fully operational and ahead of
schedule (May)

Post period updates

·    JV commences production of Zenova CS Fire Suppression Units (July)

·    First International orders and deliveries from Albania (July)

7.    Investor highlights
In February 2025, Zenova raised £250,000 through a placing and subscription of 100,000,000 new ordinary shares at 0.25 pence per share, plus 1 to 1 warrants at 0.5p.
8.    Post-Period Event (Aug 2025):

(a)           In August 2025 Zenova raised £262,500 through a
placing and subscription of 131,250,000 new ordinary shares at 0.20p per
share, plus 1 to 1 warrants at 0.4p.

(b)           Management participated in the fundraise with £50,000
through subscription of 25,000,000 new ordinary shares at the same terms and
conditions.

Note

This announcement contains inside information of the purposes of Regulation 11
of the Market Abuse (amendment) (EU exit) Regulations 2019/310. The Directors
of the Company are responsible for the release of this announcement.

 

For further information please contact:

 

Zenova Group PLC

Thomas Melchior, Chief Executive
Officer                            Via Orana
Corporate LLP:

Fiona Rodford, Chair
 
                                 Anthony
Eastman

Tel: +44 20 3475 6834

 

SPARK Advisory Partners Limited (Nominated Adviser)

Matt Davis
 
Tel: +44 20 3368 3550

 

Peterhouse Capital Limited (Broker)

Charles Goodfellow / Rose Greensmith
                Tel: +44 207 469 0930

 

 

 

Unaudited Consolidated Statement of Comprehensive Income

 

 

Consolidated Statement of Financial Position

 

 

Consolidated Statement of Cash Flows

 

 

 

Consolidated Statement of Changes in Equity

 

 

 

 

 

Notes to consolidated and parent company financial statements for 6 months to
31 May 2025

 

1.    General Information

The principal activity of Zenova Group plc and its subsidiary and associate
companies (collectively "Zenova Group" or "Group") is development, manufacture
and sale of fire-retardant and heat management solutions as well as fire
extinguishing systems.

 

Zenova Group plc is the Group's ultimate Parent Company ("the parent
company").  It is incorporated in England and Wales and domiciled in England.
 The address of its registered office is 172 Arlington Road London NW1 7HL.
 Zenova Group plc shares are admitted to trading on the London Stock
Exchange's AIM market.

2.    Basis of Preparation

 

The results for the six-month period ending 31 May 2025 are unaudited
and have been prepared in accordance with International Accounting Standards
(IFRS) as adopted for use in the United Kingdom (UK IFRS). The interim
consolidated financial information set out in this report does not constitute
statutory accounts as defined by S434 of the Companies Act 2006 and should be
read in conjunction with the annual financial statements for the year ended 30
November 2024.

 

The results for the year ended 30 November 2024 have been extracted from the
statutory financial statements for the year ended 30 November 2024. Statutory
accounts for Zenova Group Plc for the year ended 30 November 2024 were
approved by the Board on 30 May 2025 and have been filed with the Registrar of
Companies. The report of the auditors on those accounts was unqualified and
did not contain a statement under Section 498 (2) or (3) of the Companies Act
2006.

 

The accounting policies applied in these results are consistent with those
applied in the Group`s Annual Report for the year ending 30 November 2024 and
those expected to be applicable to the financial statements for the year
ending 30 November 2025.

 

The interim financial information for the six-month period from 1 December
2024 to 31 May 2025 was approved by the Board on 28 August 2025.

3.    Going Concern

 

The Group assesses at each reporting date whether it is a going concern for
the foreseeable future. In making this assessment management considers:

 

a)    the current working capital position and operational requirements;

b)    the timing of expected sales receipts and completion of existing
orders;

c)    the sensitivities of forecast sales figures over the next 18 months;

d)    the timing and magnitude of planned expenditure; and

e)    the level of indebtedness of the company and timing of when such
liabilities may fall due, and accordingly the working capital position over
the next 18 months.

 

Management considers in detail the going concern assessment, including the
underlying assumptions, risks and mitigating actions to support the
assessment. The assessment is subject to estimation uncertainty and there is
judgement in determining underlying assumptions

 

There are several scenarios which management have considered that could impact
the financial performance of the Group. These include:

 

a)    Disruption of the supply chain, and any delays in the supply of raw
material that may impact the ability of the Group to produce its products.

b)    Delays in testing and certification required for geographical and
sector specific expansion.

c)    Failure of the sales contracts to be realised and expected sales
growth to fall below expectations.

d)    Changes in legislation that may increase lead times in production or
testing.

e)    Intellectual property on which the company may be reliant to keep its
competitive advantage could be challenged.

 

Our expectations for fiscal year end cash position remains robust.

 

If the cash receipts from sales are lower than anticipated the Group has
identified that it has available to it a number of contingent actions, that it
can take to mitigate the impact of potential downside scenarios. These include
seeking additional financing, leveraging existing sale agreements, reviewing
planned expenditure and reducing overheads.

 

In conclusion having regard to the existing and future working capital
position and projected sales the Directors are of the opinion that the
application of the going concern basis is appropriate.

4.    Earnings per share

 

5.    Share Capital

 

 

On 22 August 2025, the Company raised gross proceeds of £262,500 via a
placing and subscription of

131,250,000 new ordinary shares. The Fundraise was undertaken with several
support of existing shareholders, new institutional investors and several new
high net worth investors, as well as Company management.

6.    Caution regarding forward looking statements

 

Certain statements in this announcement, are, or may be deemed to be, forward
looking statements. Forward looking statements are identified by their use of
terms and phrases such as ''believe'', ''could'', "should" ''envisage'',
''estimate'', ''intend'', ''may'', ''plan'', ''potentially'', "expect",
''will'' or the negative of those, variations or comparable expressions,
including references to assumptions. These forward-looking statements are not
based on historical facts but rather on the Directors' current expectations
and assumptions regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the amount,
nature and sources of funding thereof), competitive advantages, business
prospects and opportunities. Such forward looking statements reflect the
Directors' current beliefs and assumptions and are based on information
currently available to the Directors.

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