Zotefoams (ZTF) investor relations material

Executive summary

• Revenue grew 23% year-over-year to £95.2m, driven by diversification, strong growth in Transport & Smart Technologies, and the OKC acquisition.

• Adjusted operating profit rose 34% to £16.3m, with margin up 130bps to 17.1%.

• Strategic investments in Vietnam, South Korea, and the UK Innovation Hub are progressing on schedule, supporting future growth and innovation.

• Proposed restructuring of UK operations aims to optimize manufacturing, focus on innovation and non-footwear, and deliver £4m annualized savings, affecting over 100 roles.

• The business is more balanced, with non-footwear markets and the OKC acquisition offsetting planned normalization in footwear.

Financial highlights

• Group revenue up 23% to £95.2m; organic revenue up 4% (6% at constant currency).

• Adjusted operating profit up 34% to £16.3m; adjusted EPS up 29% to 25.7p; gross profit up 26% to £33.9m; gross margin up 100bps to 35.6%.

• Adjusted profit before tax rose 34% to £15.3m; statutory profit before tax up 23% to £14.0m.

• Interim dividend increased by 5% to 2.63p per share.

• Net debt increased to £39.1m due to strategic investments and OKC deferred consideration; leverage at 0.98x.

Outlook and guidance

• Full-year expectations unchanged; momentum supports delivery in line with market expectations.

• Medium-term ambition: revenue above £230m and operating profit above £40m by FY2029.

• Footwear revenue expected to be lower through H2 2026 and 2027, recovering from 2028 as Vietnam ramps up.

• Strategic investments and restructuring expected to drive stronger value creation from 2028 onwards.