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ZotefoamsAnnouncement

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RNS Number : 8589P  Zotefoams PLC  22 January 2026

Zotefoams plc

("Zotefoams" or "Group")

22 January 2026

 

Full Year Trading Update

 

Ahead of market expectations, with strong revenue growth and record
profitability.

 

Zotefoams, a world leader in supercritical foams, today provides a trading
update for the Group's financial year ended 31 December 2025 (unaudited).

 

The Board is pleased to announce that, following a strong performance in Q4,
the Group expects to report full year revenue of £158.5m (2024: £147.8m).
This is slightly ahead of market expectations and represents strong
year-on-year growth (+7.2%).

 

Adjusted profit before tax(1) for the year is expected to be £21.1m (2024:
£15.3m), up 37.9%, which is a Group record and ahead of market
expectations.(2)

 

Year-on-year performance for the Group's three regions on a reported basis
were as follows:

 

 ·   EMEA - 9.4% growth to £123.9m (2024: £113.3m), reflecting another
     exceptional year in Consumer & Lifestyle, driven by footwear revenue which
     benefitted from builds of new ranges and the broader footwear supply chain
     migration of production from China to Vietnam. The Group is finalising plans
     for the complex transition from manufacturing block foams in the UK to 3D
     midsole preforms in our new Vietnam facility that is being established through
     2026 and 2027.  After an extended period of strong growth, we anticipate that
     demand from our footwear customer will moderate in 2026 reflecting normalising
     inventory requirements. EMEA revenue also includes £2.0m from the recently
     acquired Overseas Konstellation Company S.A. ("OKC").

 ·   North America - 6.7% growth to £30.1m (2024: £28.1m) underpinned by a strong
     performance in Transport & Smart Technologies. Pleasingly, the
     Construction & Other Industrial segment saw strengthening demand in Q4,
     following a subdued first half of the year.

 ·   Asia revenue was £4.2m (2024: £5.1m) primarily in the Construction &
     Other Industrial vertical. This region will grow in importance once the
     Group's Vietnam footwear manufacturing facility begins operations.

The Group balance sheet remains strong, with significant financial headroom
and a year-end leverage multiple(3) expected to be at around 0.8x (2024:
0.9x), reflecting good operational cash generation and ongoing focus on
working capital management, which have helped fund the strategic capital
investment and the acquisition of OKC.

 

The Group has also agreed a new £90 million Multicurrency Revolving Credit
Facility with £30m accordion option, on improved terms, with an enlarged
syndicate that now includes, NatWest, Handelsbanken and HSBC.  This facility,
replacing the current £50m Multicurrency Revolving Credit Facility, will
provide funding to support our strategic objectives and disciplined approach
to capital allocation, including the ongoing strategic investments and
selective M&A in line with our focused criteria.

 

The Group expects to publish its preliminary results for the year ended 31
December 2025 in March 2026.

 

Commenting on the update Ronan Cox, Group CEO of Zotefoams, said:

 

"In what remain challenging market conditions, we are delighted to have closed
the year strongly, with good sales growth and, for a third year running,
record profits ahead of market expectations.

 

The strategic progress we have made this year has been very pleasing. We were
delighted to complete the acquisition of OKC, our first significant
transaction under our 'Expanding Beyond the Core' strategy, which is
performing well and is expected to make a meaningful contribution to the
Group. Our commercial transformation into market-focused verticals continues
to progress well, with our pipeline of opportunities growing across all three
market verticals. Our partnership with Seoheung in Vietnam, the appointment of
Brandon Thomas to lead our Asian operations, the signing of our South Korea
Footwear Innovation Centre lease, and the start of work on the Global
Innovation Hub at Croydon all demonstrate our commitment to positioning
Zotefoams for long-term sustainable growth in line with our stated medium-term
targets.

 

Our strong balance sheet and focus on cash generation with our new revolving
credit facility mean we are well positioned for future strategic investment
including disciplined M&A where opportunities meet our stringent criteria
and align with our strategy."

 

(1) Adjusted profit before tax excludes exceptional items, amortisation of
acquired intangibles and other significant one-off items.

(2) Zotefoams-compiled consensus expectations, for the year ending 31 December
2025, are £155.2m for net revenue and £20.5m for adjusted profit before
income tax as at 22 January 2026.

(3) Leverage multiple is calculated as Group net debt divided by EBITDA
(before exceptional items), where Group net debt is adjusted from IFRS by the
impacts of IFRS2 and IFRS16 under the bank facility definition.

 

Enquiries:

 

 Zotefoams plc                                                            +44 (0) 208 664 1600
 Ronan Cox, Group CEO
 Nick Wright, Group CFO

 IFC Advisory (Financial PR & IR)                                         +44 (0) 203 934 6630
 Graham Herring

 Tim Metcalfe

 Zach Cohen

 zotefoams@investor-focus.co.uk (mailto:zotefoams@investor-focus.co.uk)

 

About Zotefoams plc

 

Zotefoams plc (LSE - ZTF) is a world leader in supercritical fluid foam
technology, delivering optimal material solutions for the benefit of society.
Utilising a variety of unique manufacturing processes, including
environmentally friendly nitrogen expansion for lightweight AZOTE® and
ZOTEK® high-performance foams, Zotefoams sells to diverse markets worldwide
across three market verticals, Consumer & Lifestyle, Transport & Smart
Technologies, and Construction & Other Industrial. Zotefoams uses its own
materials to manufacture T-FIT® advanced insulation for demanding industrial
markets.

 

Zotefoams is headquartered in Croydon, UK, with additional manufacturing sites
in Kentucky, USA, Brzeg, Poland (foam manufacture), Anglesola and Burgos,
Spain, and foam products conversion in Oklahoma, USA and Jiangsu Province,
China (T-FIT).

 

AZOTE®, ZOTEK®, and T-FIT® are registered trademarks of Zotefoams plc.

 

www.zotefoams.com.

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