17th Mar 2026 10:58
(Alliance News) - Zotefoams PLC on Monday lifted its dividend after profit growth in 2025 and reaffirmed confidence in its medium-term goals.
The Croydon, London-based foams, insulation, seals and interior trims provider booked GBP158.5 million in annual revenue, up 7.2% from GBP147.8 million in 2024, which it described as a "record" result.
Pretax profit multiplied to GBP20.0 million from GBP200,000, whilst operating profit surged to GBP21.6 million from GBP3.0 million and return on capital employed improved to 13.9% from 11.7%. Earnings before interest, tax, depreciation and amortisation increased to GBP37.8 million from GBP28.2 million.
The firm has lifted its final dividend by 5% to 5.35 pence per share from 5.10p.
Zotefoams shares rose 3.5% to 388.12 pence on Tuesday morning in London, and are up 48% over the past year.
It plans to continue pursuing the growth strategy it has dubbed "Expanding Beyond the Core", by increasing its geographical presence, investing in Asia specifically and "building a disciplined M&A capability".
Over the medium term, Zotefoams is eyeing an organic compound annual growth rate of 7%, with 2029 revenue forecast above GBP230 million, operating profit above GBP40 million and ROCE over 20%. The company also targets cash conversion over 95%, compared with 101% in 2025 and 77% in 2024.
As a "longer-term ambition", it sees revenue passing the GBP300-million mark and operating profit to above GBP60 million, "with the opportunity to accelerate progress through inorganic growth".
On the financing front, Zotefoams noted at the renewal of loan facilities in January. It currently has a GBP90.0m multi-currency revolving credit facility and a GBP30.0m accordion.
Chief Executive Ronan Cox commented: "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... 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.... 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."
The CEO added: "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."
By Holly Munks, Alliance News reporter
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