Zotefoams (ZTF) investor relations material

Executive summary

• Delivered record revenue of GBP 158.5 million, up 7% year-over-year, and record adjusted operating profit of GBP 22.8 million, up 26%, reflecting strong operational and strategic execution.

• Strategy launched in March 2025 remains unchanged and is gaining momentum, supported by a renewed leadership team and a shift to an industry-led, market-focused organization.

• Expanded geographic footprint, notably in Asia and through the acquisition of OKC in Europe, accelerating growth and capabilities.

• Significant investments in innovation, including a new Global Innovation Hub in the UK and expansion in Asia.

• Business is now more diversified by market, geography, and application, with improved balance across the portfolio.

Financial highlights

• Group revenue up 7% to GBP 158.5 million; adjusted operating profit up 26% to GBP 22.8 million; adjusted operating margin rose 220 bps to 14.4%.

• Adjusted profit before tax up 39% to GBP 21.2 million; adjusted EPS increased 46% to GBP 0.38; statutory EPS GBP 0.464 vs. prior year loss.

• Gross profit grew 15% to GBP 52.9 million; gross margin improved to 33.4% from 31.2% year-over-year.

• Cash generated from operations up 31% to GBP 39.7 million; net debt at GBP 31.5 million after OKC acquisition; leverage ratio improved to 0.8x.

• Dividend up 5% to GBP 0.0785 per share; ROCE improved to 13.9%.

Outlook and guidance

• Entered 2026 with good momentum; early trading in line with expectations, with continued demand in Transport & Smart Technologies.

• Footwear volumes expected to normalize, but offset by growth in other segments and OKC contribution; diversification into aerospace and industrial markets.

• Full-year revenue contribution from OKC expected in 2026, supporting EMEA growth.

• Medium-term ambition to exceed GBP 300 million in revenue, with GBP 80 million targeted from M&A; targets revenue >GBP 230 million and operating profit >GBP 40 million by FY2029.

• Margins expected to improve as capacity utilization increases in North America and Asia; tax rate expected to normalize at 24–25%.