- Full year 2024 revenue up 16% to £147.8 million
- Final dividend up 4% to 5.10p
- Exclusive partnership with Nike until 2029
Shares in Zotefoams (ZTF) gained over 3% to 269p in morning trading after the specialty chemicals maker reported a 16% rise in revenue to £147.8 million for the year ending 31 December.
The lightweight foams maker which operates under an exclusive supply agreement with Nike for footwear product cushioning said this looks set to continue until 31 December 2029 (first announced last August) and has yielded benefits ‘beyond pure sales.’
The company’s HPP (high-performance product) sales surpassed those of its polyolefin foams division for the first time reflecting the group’s focus on mix enrichment.
Last December the company said it was winding down investment in its carton packaging business ReZorce after being unable to secure an investing partner ‘to realise the commercial potential of the technology.’
The winding down of ReZorce incurred a non-recurring £4.9 million operating cost. Despite this charge the company delivered a record operating profit before exceptional items of £18.1 million, up 20% year-on-year.
WHAT DID THE CEO SAY?
Group CEO Ronan said the company had made a positive start to 2025 referencing the progress made in consumer, lifestyle, transport, and smart technology divisions and launching a new group strategy called ‘Expanding beyond the core.’
‘Our market realignment is progressing well as we transition from a product-centric to an industry-led approach. Our investment in manufacturing excellence is advancing, with continued good progress towards completion of our £10 million expansion in the US, which remains on schedule for early second half of 2025 commissioning, and we are commencing with investments in our innovation centre of excellence in the UK, our innovation hub in South Korea, and our new manufacturing facility in Vietnam.’
However, Cox did point out the uncertainty surrounding the US trade and tariffs policy.
‘The emerging trade landscape, including recent trade tariffs, creates both challenges and opportunities for Zotefoams. While these may impact global supply chains and market dynamics, our diversified manufacturing footprint across the UK, US, Poland and soon, Vietnam positions us well to navigate these uncertainties and potentially capture market share from less adaptable competitors.’
