Zotefoams (ZTF) Trading Update summary

Financial performance highlights

• Full year revenue reached £147.8m, up 16% from 2023 and slightly ahead of market expectations.

• Adjusted profit before tax rose 19% to £15.6m, marking a record for the Group.

• High Performance Product (HPP) sales grew 37% to £79.7m, driven by 46% growth in Footwear.

• Polyolefin sales declined 1% to £66.9m due to weaker industrial market conditions.

• Year-end leverage multiple expected to fall to 0.9x, indicating strong financial headroom.

Strategic and operational updates

• Investment in ReZorce circular packaging ceased after failing to secure a partner; MEL business unit assets to be impaired.

• Closure costs for MEL up to £1.5m will be treated as an exceptional item in 2024 results.

• Approximately £10m invested in expanding US capacity with a new low-pressure vessel, commissioning expected H2 2025.

• Focus shifting to core foams business units, leveraging supercritical foam technology and innovation.

Leadership commentary and outlook

• CEO highlights record profits, strong HPP sales, and strategic refocus on core business.

• Cash savings from ReZorce exit to support refreshed growth strategy.

• Emphasis on expanding capabilities, customer partnerships, and sustainable material innovation.

• Capital Markets Day scheduled for 18 March 2025 to present strategy and growth drivers.