UK-based supercritical foams manufacturer posted a 9% increase in revenue to £77.4 million
LONDON: Zotefoams plc reported record interim results for the six months ended June 30, 2025, driven by strategic realignment and strong performance across key market verticals.
The UK-based supercritical foams manufacturer posted a 9% increase in revenue to £77.4 million, with profit before tax surging 37% to £11.4 million.
The company’s gross margin rose 140 basis points to 34.6%, while operating margin climbed to 15.8%, up from 13.6% a year earlier. Basic earnings per share jumped 55% to 19.99 pence.
Zotefoams saw double-digit revenue growth in EMEA and North America, with Consumer & Lifestyle and Transport & Smart Technologies segments leading the charge. However, Construction and Other Industrial revenue declined 14%.
CEO Ronan Cox attributed the performance to the company’s refreshed strategy, which includes aligning commercial operations around three global verticals and curtailing investment in MuCell Extrusion Limited (MEL). “We are encouraged by early benefits from this more targeted approach to market development,” Cox said.
Operational efficiency and stable polymer pricing helped absorb reorganization costs, while cash generation from operations nearly doubled to £15.8 million. Net debt on a covenant basis fell 40% to £21.1 million, reducing leverage to 0.7x.
The company increased its interim dividend by 5% to 2.50 pence per share.
Zotefoams also announced a strategic partnership with Seoheung Co. Ltd. for its new Vietnam manufacturing facility. Seoheung acquired a 17.5% stake in the venture for $10 million, supporting the $32 million project aimed at serving global footwear manufacturers.
Looking ahead, Zotefoams expects full-year profit before tax to exceed current market expectations, supported by continued momentum and capital investment in North America.