Following a record first half, the Group achieved Q3 reported revenue of £38.2m, which was in line with a very strong prior year comparator on a constant currency basis:
- EMEA revenue in Q3 reduced 1% with the anticipated moderation and seasonality in Consumer & Lifestyle largely. This is offset by ongoing strong demand in Transport & Smart Technologies and growth in the Construction & Other Industrial insulation business.
- North America revenue in Q3 was down 16%, following a strong H1, largely due to phasing of orders in Transport & Smart Technologies, and more subdued demand in Construction & Other Industrial.
- Asia has see good growth in the period despite its smaller representation of revenue. It remains strategically important as the Group continues preparations for operations in Vietnam.
On a year-to-date basis, Group reported revenue is up 5% to £115.7m (YTD 2024: £110.7m), and up 7% on a constant currency basis:
- Year-to-date EMEA revenue was up 7%. Within this Consumer & Lifestyle was up 7%, driven by strong demand from Nike in the first half of the year to support strategic stocking in advance of planned product launches. Construction & Other Industrial was up 15%, with ongoing demand in the UK market and stronger demand for insulation in Q3. Transport & Smart Technologies was up 4%, reflecting sustained momentum in our target sectors.
- Year-to-date North America revenue was in line with the prior year, with good growth in Transport & Smart Technologies, up 16%, reflecting success in aerospace and specialty packaging. This was offset by lower demand in Construction & Other Industrial, down 12%, reflecting demand headwinds as well as repositioning of our channel partners.
- In Asia, our smallest region by sales, year-to-date performance has been driven by our T-FIT® insulation business, which is up 5%, offset by the non-repeat of several larger one-off sales in Transport & Smart Technologies in the prior year
Strategy progress
Leadership
Brandon Thomas was appointed as Managing Director, Asia – his extensive technical and commercial experience from his role as General Manager, Asia at Nike will support the development of the innovation centre in Asia.
Joint Venture
Zotefoams entered into a joint venture partnership with Seoheung Co. Ltd. a footwear supply chain specialist, through a joint venture for the Vietnam manufacturing facility. Seoheung has invested $10m for a 17.5% stake, reducing financial and technical risk.
Locations
Zotefoams has signed a lease for a new Footwear Innovation Hub, which will further strengthen Zotefoams’ capabilities and customer relationships in the athletic footwear market.
At our Croydon site in the UK, we have committed to a new global innovation centre to accelerate product development across all three market verticals.
The Vietnam factory progress remains on track with expected commissioning to begin Q4 2026. This facility will position the Group significantly closer to a key global footwear manufacturing hub.
Finally, in North America, a second low-pressure vessel has been commissioned successfully.
Outlook
The board is confident in the group’s ability to maintain positive momentum across business units for the final quarter.
Subject to no material disruption within key markets, the Board expects the adjusted project before tax to be as expected.
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