Zotefoams (ZTF) investor relations material

Executive summary

• Achieved record revenue of GBP 158.5 million, up 7% year-over-year, and record adjusted operating profit of GBP 22.8 million, up 26%, driven by disciplined execution, a renewed leadership team, and a shift to an industry-led, market-focused organization.

• The business expanded its industry-led model, diversified geographically and by market, and invested in innovation and capacity, including a new Global Innovation Hub in the UK and expansion in Asia and North America.

• Acquisition of OKC in Spain strengthened the European footprint, added new customers, and provided a blueprint for future M&A, accelerating European growth and expanding capabilities.

• Significant investments in innovation and capacity, particularly in Asia and North America, supported strategic progress.

Financial highlights

• Group revenue rose 7% year-over-year to GBP 158.5 million, with EMEA leading growth.

• Adjusted operating profit increased 26% to GBP 22.8 million; adjusted operating margin up 220 bps to 14.4%.

• Adjusted profit before tax up 39% to GBP 21.2 million; statutory profit before tax GBP 20 million, a significant turnaround from the prior year.

• Adjusted EPS increased 46% to GBP 0.38; statutory EPS GBP 0.464 versus a prior year loss.

• Gross profit grew 15% to GBP 52.9 million; gross margin improved to 33.4%.

• Cash generated from operations increased 31% to GBP 39.7 million; ROCE improved to 13.9%.

• Net debt increased to GBP 31.5 million due to the OKC acquisition and capital investment, but leverage ratio improved to 0.8x.

• Final dividend proposed at GBP 0.0535, total dividend up 5% to GBP 0.0785 per share.

Outlook and guidance

• Entered 2026 with strong momentum; footwear volumes expected to normalize, but diversification and new capacity support growth, with continued demand in Transport & Smart Technologies.

• OKC integration and Vietnam investment free up European capacity, supporting medium-term targets; full-year revenue contribution from OKC expected in 2026.

• Strategy and execution capability remain robust, with continued focus on disciplined investment and M&A; medium-term targets: revenue over GBP 230 million and operating profit over GBP 40 million by FY2029.

• Tax rate expected to normalize at 24–25% going forward; effective tax rate reduced to 12.3% from 19.0%.