Zotefoams plc (LON:ZTF) has announced its preliminary results (unaudited) for the year ended 31 December 2025
“Continued growth and margin progression delivered another year of record profitability as we execute on our long-term growth strategy”
Financial Headlines
| Group | ||||
| 2025 | 2024 | Change | ||
| £m | £m | |||
| Revenue | 158.5 | 147.8 | 7.2% | |
| Gross profit | 52.9 | 46.1 | 14.8% | |
| Adjusted Operating profit1 | 22.8 | 18.1 | 26.0% | |
| Adjusted Operating Margin | 14.4% | 12.2% | 220bps | |
| Adjusted Profit before tax | 21.2 | 15.3 | 39% | |
| Adjusted Basic EPS | 38.0p | 25.95p | 46% | |
| Final dividend3 (p) | 5.35 | 5.10 | 5% | |
| Operating profit | 21.6 | 3.0 | 620% | |
| Profit before tax | 20.0 | 0.2 | ||
| Cash generated from operations | 39.7 | 30.4 | 31% | |
| Net debt Covenant Basis2 | 31.5 | 24.1 | 31% | |
| Net debt (IFRS) | 43.0 | 33.0 | 30% | |
| Leverage ratio2 | 0.8 | 0.9 | ||
| ROCE | 13.9% | 11.7% | 220bps |
1 This is a reported number under UK-adopted IFRS and is after adding back MuCell closure costs £0.9m (2024: £15.2m) and amortisation of acquired intangibles of £0.2m (2024: £Nil)
2 Leverage is that defined under the bank facility, with net debt at the end of the period divided by the preceding 12 months’ EBITDA, adjusted for the impact of IFRS 2 and IFRS 16
3 Final dividend is subject to approval at the May 2026 Annual General Meeting
Results Headlines
| · | Record Group revenue of £158.5m, 7% higher than the prior year (2024: £147.8m) |
| · | Record adjusted operating profit up 26% to £22.8m (2024: £18.1m) |
| · | Adjusted Basic EPS up 46% to 38.00p (2024: 25.95p) |
| · | Strong cash generation and balance sheet foundation to support ongoing investment and refreshed growth strategy |
| – Cash generated from operations up 31% to £39.7m (2024: £30.4m) | |
| – Cash conversion at 101%, with FCF of >£23m | |
| – ROCE up 220bps to 13.9% (2024: 11.7%) | |
| – Net debt excluding leases up 31% to £31.5m (31 December 2024: £24.1m) due to financing of the acquisition of Overseas Konstellation Company S.A. (“OKC”). | |
| – Leverage ratio improved at 0.8x (31 December 2024: 0.9x) providing substantial investment headroom. | |
| – Final dividend up 5% to 5.35p (2024: 5.10p) |
Strategic Progress
| · | The Group is continuing to deliver on its Expanding Beyond the Core strategy aimed at driving long term sustainable growth and shareholder value creation |
| · | Through increased focus on operation execution, the expansion of geographical footprint, investment in innovation and building a disciplined M&A capability, the Group is targeting ambitious progress in the medium term: |
| – Organic growth of 7% CAGR to deliver FY2029 revenue of >£230m | |
| – Operating profit of >£40m by FY2029 | |
| – ROCE of over 20% by FY2029 | |
| – Cash conversion of >95% | |
| · | Longer-term ambition to grow revenues to >£300m and operating profit to >£60m, with the opportunity to accelerate progress through inorganic growth |
| · | Key initial enabling steps for this transformation were taken in FY2025: |
| – Construction of machinery for new Vietnam factory well progressed with £4.3m invested | |
| – Completion of new second low-pressure vessel in the US which is now operational | |
| – Innovation centre established in Korea with growth and investment planned for 2026 | |
| – Acquisition of OKC, extending products, capabilities and routes to market in Europe | |
| · | Early progress and momentum in 2026: |
| – Trading in line with expectations and continued strength in Transport & Smart Technologies | |
| – OKC integration progressing well, with integration into the European operating model underway and full-year revenue contribution in 2026 | |
| – Growth becoming more balanced across the portfolio, with healthy pipelines in aerospace, industrial and other technical applications | |
| – Continued focus on execution in 2026, including service, efficiency, margin improvement and delivery of strategic investments in Asia |
Ronan Cox, Zotefoams Group CEO, said:
“We have entered 2026 with good momentum. Trading in the early part of the year has been in line with our expectations, supported by continued demand in Transport & Smart Technologies and improving order books across several markets. We are also benefiting from the initial contribution of OKC, where the integration into our European operating model is progressing well.
“As anticipated, demand patterns across our markets are becoming more balanced following a period of exceptional growth in Consumer & Lifestyle. In footwear, we expect volumes to moderate from the unusually high levels experienced in 2024 and 2025 as customers normalise inventory positions which is an expected transition, and our operating plans reflect this shift. Importantly, our exposure across other market verticals continues to strengthen, with healthy pipelines in aerospace, industrial and other technical applications providing a broader base for growth.
“Operationally, our focus in 2026 is on execution and delivery. This includes building and maintaining strong service levels, managing capacity carefully across the network, and continuing to improve operational efficiency and margins. We will also progress our major strategic investments, particularly in Asia, ensuring that new capacity and innovation capability are delivered safely, on time and within approved investment parameters.
“Looking further ahead, we are increasingly confident that the Group’s medium‑term prospects are in line with our stated ambitions. The strategic progress made over the past two years – transitioning to a market‑led organisation, expanding our geographic footprint, investing in innovation and building a disciplined M&A capability – has materially strengthened the business. Zotefoams is now more diversified by market, geography and customer, with a clearer right‑to‑win in high‑value applications and a more resilient operating platform.
“Our medium‑term objectives remain unchanged. We continue to target sustained revenue growth, backed by strong margins and ROCE, with cash generation supporting a disciplined capital allocation strategy focused on value creation. We have made good progress down this path in 2025, executing well in the business and identifying opportunities to accelerate strategically. The acquisition of OKC enhances both our growth profile and our strategic optionality, while our investments in Asia and innovation position the Group for the next phase of development.
“While we remain mindful of ongoing macroeconomic and geopolitical uncertainties, we are confident that Zotefoams is well positioned to navigate these challenges. We have a clear strategy, a strengthened leadership team, well‑invested assets and a strong financial position. The progress delivered in 2025 provides confidence that we have both the capability and the discipline to continue delivering sustainable growth and long‑term value for all stakeholders.”
