Rising to
the challenge
Zotefoams plc
Annual Report 2022
Contents
Strategic Report
Group at a glance
6
Our brands in action
10
A unique manufacturing process
12
Our business model
14
Our external context
20
Our strategic objectives
22
An introduction from our Chair
25
Group CEO’s review
27
Group CFO’s review
32
Risk management and principal risks
39
Viability statement
51
Environmental, social and
52
governance (ESG) report
Our people
70
s172(1) statement
75
Governance
Board of Directors
78
Corporate governance
80
Audit Committee report
83
Nomination Committee report
86
Directors’ Remuneration report
88
Directors’ report
110
Statement of Directors’ responsibilities
113
Financial Statements
Independent auditor’s report
114
Consolidated income statement
119
Consolidated statement of
120
comprehensive income
Consolidated statement of financial position
121
Company statement of financial position
122
Consolidated statement of cash flows
123
Company statement of cash flows
124
Consolidated statement of changes in equity
125
Company statement of changes in equity
126
Notes
127
Five-year trading summary
166
Notice of the 2023 Annual General Meeting
167
Company information
171
Financial calendar
171
Broader and stronger
Celebrating five years of our
strategic partnership with Nike
p2
Our brands in action
p10
ReZorce
®
Circular Packaging
and MuCell
®
polymer
reduction technology
Building sustainability in
consumer packaging
p4
1
Zotefoams plc
Annual Report 2022
Strategic Report
Governance
Financial Statements
Basic earnings
per share
20.61p
Change
129%
2021
9.01p
Total dividend
for the year
6.80p
Change
5%
2021
6.50p
Return on
capital employed
10.1%
Change
400 bps
2021
6.1%
Net debt
£27.8m
Change
19%
2021
£34.3m
Leverage
1.2x
Change
43%
2021
2.1x
Group revenue
£127.4m
Change
26%
2021
£100.8m
Gross margin
30.4%
Change
400 bps
2021
26.4%
Operating profit
£13.9m
Change
71%
2021
£8.1m
Profit before tax
£12.2m
Change
74%
2021
£7.0m
In 2022, Zotefoams grew
significantly, delivering record
revenue and profit before tax
We continue to invest in our business
linked, primarily, to three
forecastable macro-trends:
demographics, where an increasing
population is evermore urban and
aging; regulation, often around safety
of people; and environment, where
optimising the use of scarce
resources has become a global
necessity. Sustainability, along with
health and safety, is embedded in
everything we do
David Stirling
Group CEO
Financial KPIs