Zotefoams PLC on Tuesday raised its total dividend after reporting record revenue in 2024, as the company positions for expansion in Asia.

The London-based cellular materials company said 2024 revenue rose 16% to £147.8 million from £127.0 million in 2023.

Of total sales, High Performance Products increased 37% to £79.6 million from £58.1 million. Polyolefin Foams sales fell 1% to £66.9 million from £67.6 million. The company said this was the first time high-performance product sales surpassed those of Polyolefin Foams. This reflected the group’s focus on mix enrichment.

Pretax profit before exceptional items was £15.3 million, up 19% from £12.8 million the year prior. Pretax profit after exceptional items of £15.2 million related to the closure of its MuCell business was £200,000, compared to £12.8 million in 2023.

In December, Zotefoams announced it would wind down MuCell Extrusion LLC to focus all resources on ‘near-term opportunities in the core supercritical foams businesses’.

The company had been developing a fully circular solution for mono-material barrier packaging, named ReZorce.

Zotefoams said it would retain intellectual property and know-how regarding MuCell’s ReZorce technology for use ‘should market conditions become more favourable’.

The MuCell business had reported a loss of £21.6 million in 2024, compared to a £5.5 million loss in 2023.

For the full-year, Zotefoams reported a total comprehensive loss of £4.2 million, swung from profit of £8.2 million in 2023.

Zotefoams has proposed a second half dividend of 5.10 pence, compared to 4.90 pence in 2023. This brings the total dividend to 7.48 pence, up 4.2% from 7.18 pence last year.

Looking ahead, Zotefoams highlights a ‘well-invested and differentiated assets’ in Europe, the Middle East & Africa and North America.

Earlier this month, Zotefoams announced a £26 million investment for two new manufacturing and innovation facilities, in Vietnam and South Korea.

The company said the expansion was needed to capitalise on ‘substantial’ long-term growth potential in footwear, by bringing capacity close costumer’s supply chains.

The firm had in March said potential benefits included improved customer relationships, lower production and transport costs, and significantly improved sustainability metrics.

It further expects to commission its £10 million US expansion early in the second half this year.

The company remains optimistic against a backdrop of uncertainty as its ‘diversified manufacturing footprint across the UK, USA, Poland and, soon, Vietnam positions us well to navigate these uncertainties and potentially capture market share from less adaptable competitors.’

Zotefoams traded 2.0% higher at 267.26 pence each on Tuesday morning in London.

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