Zotefoams (LSE:ZTF) delivered a strong set of results for the six months ended 30 June 2026, with revenue rising 23% to £95.2 million and adjusted operating profit increasing 34% to £16.3 million. The performance was driven by continued expansion into non-footwear markets and the first full six-month contribution from the company’s OKC acquisition.
Growth was recorded across multiple regions, with revenue in Asia more than doubling during the period. Profit margins also improved, while adjusted earnings per share increased 29%. Net debt rose to £39.1 million as the group expanded its financing facilities to support ongoing investment and growth initiatives.
Expansion Strategy Continues to Build Momentum
The company said its Expanding Beyond the Core strategy is progressing ahead of expectations, supported by the successful integration of OKC and continued investment in international manufacturing capacity.
Construction of a new production facility in Vietnam continues to advance, while a new Footwear Innovation Centre has opened in South Korea to strengthen collaboration with global footwear manufacturers. At the same time, Zotefoams is proposing changes to its Croydon operations that would reduce high-volume footwear production in the UK and increase the site’s focus on materials innovation and higher-value non-footwear applications.
Innovation and Efficiency Support Long-Term Growth
Management believes continued cost discipline, the introduction of AI-powered productivity tools and stronger collaboration with global partners will help the business achieve its 2026 objectives and support its ambition of delivering significantly higher revenue and profitability by 2029.
Although higher debt and historical fluctuations in earnings and cash flow remain factors to monitor, the company’s outlook is supported by improving financial performance, positive share price momentum, an attractive valuation and a modest dividend yield.
About Zotefoams
Zotefoams plc is a London Stock Exchange-listed manufacturer of high-performance foam materials used in sectors including transportation, footwear, aerospace, industrial insulation and advanced technologies. The company produces its proprietary AZOTE and ZOTEK foam products using specialised nitrogen expansion technology, while its T-FIT range is designed for demanding industrial insulation applications.
Headquartered in London, Zotefoams operates manufacturing facilities in the UK, the United States, Poland, Spain, Vietnam and China, with its Oklahoma operation specialising in foam products and conversion. This international manufacturing network enables the group to support global customers while continuing to diversify across industries and geographic markets.
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