Chair’s statement

Dear shareholders

2025 was a year of momentum and strategic progress for Zotefoams. The Group delivered another year of record financial performance while making tangible progress against the refreshed strategy laid out by the Board in 2024. This combination of delivery and investment has reinforced the resilience of the business and strengthened the platform for sustainable long‑term growth.

During the year, the Board has focused closely on the execution of the Group’s strategy, including disciplined investment in expansion and innovation, alongside continued focus on operational performance, cash generation and balance sheet strength. The successful completion of Zotefoams’ first acquisition in this new strategic phase, progress in establishing a manufacturing presence in Asia, and continued investment in our innovation capabilities reflect the Board’s confidence in the Group’s strategic direction and its ability to execute consistently and at pace. Importantly, these actions have been undertaken with a robust capital discipline and governance approach.

As we progress further, the Board remains committed to sustained execution of the strategy and management of the associated risks as the Group continues to upscale. We are confident that the governance, controls and oversight arrangements in place are appropriate for this next phase of development, and that the Group is well positioned to balance growth, returns and resilience.

The Board is encouraged by the progress made during the year. Zotefoams is now operating with greater customer proximity, broader market exposure and a more resilient global footprint. These developments support the Board’s confidence that the strategy is beginning to deliver as intended and that the Group is well positioned for the next phase of growth.

Board composition and governance

The Board oversaw several important leadership and governance changes during 2025, all of which were managed in a planned and orderly manner.

On 3 March 2025, we announced the planned retirement of Gary McGrath, Group CFO. Gary stepped down from the Board on 31 October 2025, following nine years of dedicated service, as part of a managed succession process. On behalf of the Board, I would like to thank Gary for his significant contribution to Zotefoams and wish him well in his retirement.

Nick Wright, an ACA-qualified Chartered Accountant with both manufacturing sector experience and listed company transformation expertise, was appointed Group CFO on 1 November 2025. We welcomed Nick to the Group as CFO‑designate and Executive Director from September 2025, ensuring a smooth transition and continuity of financial leadership.

The Board was also strengthened with the appointment of Jack Clarke as an Independent Non‑Executive Director in October 2025. Jack brings extensive experience from senior strategy and finance roles, most recently as CFO of Essentra plc. In December 2025, Doug Robertson retired from the Board after almost nine years of service, including as Chair of the Audit Committee. I would like to thank Doug for his leadership and commitment. Following Doug’s retirement, Jack assumed the role of Chair of the Audit Committee, and Malcolm Swift became Senior Independent Director, continuing his role as Chair of the Remuneration Committee.

This was also the first full year with Ronan Cox as Group CEO. Under Ronan’s leadership, the Group has continued to build momentum, and the Board is confident that the executive team has the capability, balance and experience required to deliver the next phase of the strategy.

Dividend

The Board remains committed to a progressive dividend policy and to sharing the Group’s success with shareholders. We are proposing a 5% increase in the final dividend to 5.35 pence per share (2024: 5.10 pence), which, if approved, would result in a total dividend for 2025 of 7.85 pence (2024: 7.48 pence). This reflects the Board’s confidence in the Group’s future prospects and its continued focus on disciplined capital allocation.

Further detail on capital allocation is set out in the Group CFO’s review.

Sustainability and responsible business

The Board remains strongly focused on sustainability and responsible business practices. Zotefoams’ purpose – delivering optimal material solutions for the benefit of society – continues to guide decision‑making at Board level. During 2025, the Board oversaw continued investment in sustainable innovation and ensured that environmental considerations were integrated into major strategic and capital decisions.

The Board also maintained a strong focus on governance, integrity and risk management, remaining attentive to evolving best practice and the UK Corporate Governance Code. We continued to prioritise the safety and wellbeing of our people and to promote a culture of accountability, inclusion and respect across the Group.

Looking ahead

Zotefoams has entered 2026 with good momentum, a stronger and more diversified platform and a clear strategic focus. The progress delivered during 2025 gives the Board confidence that the Group is well positioned to navigate ongoing macroeconomic and geopolitical uncertainties while continuing to deliver sustainable growth, improving returns and strong cash generation over the medium term.

On behalf of the Board, I would like to thank all our employees for their commitment and contribution during the year, and our shareholders for their continued support.

L Drummond

Chair
10 April 2026