Zotefoams (ZTF) Trading update summary

Trading performance

• First-four-month revenue rose 26% to £64.1m, including OKC’s initial contribution and solid organic growth in other markets.

• EMEA revenue increased 24% to £50.1m, including £9.8m from OKC; transport and smart technologies largely offset footwear moderation.

• North America revenue grew 13% to £12.1m, including 30% organic growth, supported by added capacity and robust demand across key markets.

• Asia revenue rose to £1.9m; price increases covered raw material, transport and energy costs, maintaining margins.

• Margins, cash generation, working capital and the balance sheet remained strong, supported by operational improvements and cost efficiency.

Strategic progress

• OKC, acquired in November 2025, is performing on or slightly ahead of its investment case; integration is progressing well, with cross-selling wins and organic sales benefits.

• Global Approved Partners Programme launched across seven target industries, with partners signed up in all seven and further additions planned by end-H1.

• South Korea innovation center is operating with seven staff; Vietnam facility construction and equipment installation are underway, with first test production targeted by end-2026.

• Protected AI system draws on ~2m internal articles, artifacts and data files plus over 6m academic papers; use cases include innovation, recipe predictions, customer support and productivity.

• Acquisition pipeline remains healthy, with several opportunities under review; OKC integration learnings are informing a blueprint for future deals.

Outlook and risks

• Full-year expectations remain unchanged; 2026 revenue is forecast at £190.8m and adjusted PBT at £26.3m.

• Footwear moderation is tracking as anticipated, offset by demand from other industries; no specific demand headwinds from Middle East instability have been seen so far.

• Middle East-related raw material, energy and transport cost pressures are being addressed through surcharges and price increases.

• Medium-term strategy remains on course, with a target PBT margin of ~20% by the end of the five-year strategy period.