27th May 2026 12:32
(Alliance News) - Zotefoams PLC on Wednesday reported "strong trading" and "robust demand" in the first four months of 2026, in an update published before its annual general meeting.
Shares in the Croydon, London-based provider of foams, insulation, seals and interior trims rose 7.7% to 428.55 pence around noon on Wednesday in London.
Zotefoams estimated that revenue had risen 26% on-year to GBP64.1 million in the four months ended April 30.
Its Europe, Middle East and Africa business saw revenue rise 24% on-year to GBP50.1 million, reflecting a GBP9.8 million contribution from the recently acquired Overseas Konstellation Co. Zotefoams expects OKC to offset a moderation in Footwear sales, against a strong prior year comparator.
"Transport & Smart Technologies, including aviation, space, and automotive applications, continued to grow maintaining the momentum observed last year," Zotefoams said.
Its North American segment saw 30% organic on-year revenue growth to GBP12.1 million, while Asia saw revenue roughly double from the prior year to GBP1.9 million.
"The group continues to invest in Vietnam and South Korea with operations expected to commence towards the end of the year. This momentum, together with the continued focus on operational improvements and cost efficiency, have supported margins in the period in line with expectations. Cash generation has been similarly robust, reflecting our ongoing focus on working capital efficiency," Zotefoams continued.
It reaffirmed full-year expectations, citing market consensus for annual revenue of GBP190.8 million in 2026, alongside adjusted pretax profit of GBP26.3 million. This compares to GBP158.5 million and GBP21.2 million respectively in 2025.
Zotefoams "is actively monitoring the impacts of instability in the Middle East, has taken steps to mitigate the impact of raw materials and other cost movements, and is well-positioned to adapt to evolving conditions," it said.
Chief Executive Ronan Cox added: "We have made good progress integrating OKC and advancing our major projects in Vietnam, South Korea and the UK, bringing us closer to our customers and adding capacity for the next phase of growth...We remain confident in delivering our full-year objectives, supported by a strong balance sheet and continued demand across our key target markets."
By Holly Munks, Alliance News reporter
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