UK's Zotefoams H1 revenue rises on OKC acquisition; plans restructuring affecting over 100 employees
UK's Zotefoams H1 revenue rises on OKC acquisition; plans restructuring affecting over 100 employees
Overview
UK high-performance foam maker's H1 revenue grew 23% yr/yr, driven by OKC acquisition
Adjusted EPS for H1 rose 29% yr/yr
Company announced UK restructuring proposals, expected to affect over 100 employees
Outlook
Zotefoams maintains full-year 2026 expectations, with market forecasts for revenue at £190.8m
Company expects footwear revenue to be lower through H2 2026 and into 2027 during transition
Proposed UK restructuring expected to generate annualised cost savings of about £4m
Result Drivers
OKC ACQUISITION - First full-half contribution from OKC added £14.8m to revenue and supported margin gains
NON-FOOTWEAR GROWTH - Strong momentum in Transport & Smart Technologies and aerospace offset footwear revenue decline
SURCHARGES AND COST CONTROL - Price increases and surcharges applied to offset raw-material, freight and utility cost inflation, with productivity improvements supporting margins
Company press release: ID:nRSE2898Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Revenue |
| GBP 95.23 mln |
|
H1 Adjusted EPS |
| GBP 0.26 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the non-paper containers & packaging peer group is "buy"
Wall Street's median 12-month price target for Zotefoams PLC is GBp590.00, about 28.8% above its August 4 closing price of GBp458.00
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago
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Aug 4 - Celanese Q2 adjusted EPS beats estimates, sales meet expectations
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)