Zotefoams delivers record profitability as revenues rise, margins widen

(Sharecast News) - Foams manufacturer Zotefoams said on Tuesday that it had delivered "record profitability" in 2025, driven by continued growth and margin progression.

Zotefoams said revenues had grown 7.2% to £158.5m and operating margins had improved 220 basis points to 14.4%, driving adjusted operating profits 26% higher to £22.8m. Adjusted basic earnings per share rose 46% to 38p.

The AIM-listed company also generated strong cash flow from operations, up 31% to £39.7m, and proposed a 5% increase in its final dividend to 5.35p per share.

Zotefoams said strategic progress throughout the period included its acquisition of Overseas Konstellation Company for up to €36m and continued investment in its new Vietnam factory, positioning it for further growth.

Looking ahead, Zotefoams targets of over £230m in revenue and £40m in operating profits by FY29.

As of 1100 GMT, Zotefoams shares were up 3.28% at 387.28p.

Reporting by Iain Gilbert at Sharecast.com

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