Zotefoams plc (LON:ZTF), a world leader in supercritical foams, has provided a trading update for the Group’s financial year ended 31 December 2024 (unaudited).
The Board is pleased to report that, following a strong performance in Q4, the Group expects to report full year revenue of £147.8m (2023: £127.0m). This is slightly ahead of current market expectations and represents a significant increase (+16%) compared with the prior year.
Adjusted profit before tax1 for the year is expected to be £15.6m (2023: £13.1m), up 19%, which is a Group record and also ahead of current market expectations.2
The improved profit performance comprises two distinct elements:
| · | An 18% increase in the combined profitability of polyolefin and HPP business units (the “foams business units”) to £20.3m (2023: £17.2m), led by 46% growth in Footwear sales and further progress on efficiency savings, and after a £1.0m inventory provision following an in-depth assessment of recoverability |
| · | An adjusted segment loss of £4.7m in the MuCell Extrusion (MEL) business unit (2023: £4.1m loss), reflecting Group expenditure during the year to progress the ReZorce® circular packaging opportunity, which has now ceased |
