Zotefoams plc
Annual Report 2023
Strategic Report
Group at a glance
10
Our brands
12
A unique manufacturing process
18
Our business model
20
Our external context
26
Our strategic objectives
28
Chair’s statement
31
Group CEO’s review
33
Group CFO’s review
38
Risk management and principal risks
45
Viability statement
59
Non-financial information statement
60
S172(1) statement
61
Environmental, social and governance (ESG) report
64
Contents
Governance
Board of Directors
78
Corporate governance
80
A
udit Committee report
83
Nomination Committee repor
t
87
Directors’ Remuneration report
90
Directors’ report
104
Statement of Directors’ responsibilities
107
Financial Statements
Independent auditor’s report
108
Consolidated income statement
113
Consolidated statement of comprehensive income
114
Consolidated statement of financial position
115
Company statement of financial position
116
Consolidated statement of cash flows
117
Company statement of cash flows
118
Consolidated statement of changes in equity
119
Company statement of changes in equity
120
Notes
121
Five-year trading summary
160
Notice of the 2024 Annual General Meeting
161
Company information
165
Financial calendar
165
Return on capital employed
10.3%
Change
20 ppt
2022
10.1%
Net debt
£31.6m
Change
13%
2022
£27.8m
Leverage
1.2x
Change
0%
2022
1.2x
Group revenue
£127.0m
Change
0%
2022
£127.4m
Gross margin
32.3%
Change
190 ppt
2022
30.4%
Operating profit
£15.1m
Change
9%
2022
£13.9m
Profit before tax
£12.8m
Change
5%
2022
£12.2m
Basic earnings per share
19.00p
Change
-8%
2022
20.61p
Total dividend for the year
7.18p
Change
5.6%
2022
6.80p
Financial KPIs
In 2023, Zotefoams delivered its strongest
performance yet – record-breaking profit before
tax, underpinned by strategic consolidation of
revenue towards higher-value product
propositions.
As we drive towards further sustainable growth,
we’re stepping up efforts across our business by
continuing to champion a culture where people
come first, and by setting the stage for continued
innovation and collaboration as we enhance our
product range and bolster our global footprint.
David Stirling
Group CEO
A new basketball
superpower
Nike brings ZoomX foam to a
basketball shoe for the first time
See page 6
A more
sustainable
future
Driving towards
ReZorce
®
mono-material barrier packaging
with MuCell
®
polymer reduction
technology
See page 4
Our brands in action
Innovating to help our customers
meet new challenges
See page 14
03
Zotefoams plc
Annual Report 2023
Strategic Report
Governance
Financial Statements