Zotefoams (LON: ZTF), the London-based maker of high-performance foams, said today that third-quarter organic revenue fell 7% to £35.6m as footwear sales dropped by more than it had anticipated. The trading update came at 7am, before the market opened.
Group revenue for the quarter to the 30th of September was £41.8m, up 9% from £38.2m a year earlier. That growth came only from OKC, an Oklahoma foam manufacturer bought in November 2025, which added £6.2m. Organic revenue, which strips out acquisitions, was down.
Footwear revenue was £9.3m, against £17.6m in the third quarter of 2025. For the nine months it was £37.7m, against £54.6m. Zotefoams had flagged a decline, but the company said the quarter’s reduction was greater than it had anticipated.
Elsewhere the picture was stronger. Non-footwear sales grew 28% organically, led by North America, up 33%, and now make up 72% of revenue for the year to date, against 53% a year earlier. Cash conversion, the share of profit turned into cash, was 93% in the quarter. Leverage was 1.0x, up from 0.5x a year earlier. On the 13th of October the company bought Verttec, a Pennsylvania maker of technical foams, for an initial $5.1m.
Group chief executive Ronan Cox acknowledged the footwear slide while pointing to the company’s trials of a new production site in Vietnam:
While footwear revenue has declined, the transition is progressing, with first-stage trials under way in Vietnam. The strategic development of the Group is establishing a stronger, more resilient and scalable platform, and we remain confident in our medium-term ambitions.
Ronan Cox, Group CEO
The board expects full-year adjusted profit before tax in line with market expectations, which the company puts at £26.3m on its own compilation. Second-half margins will be lower than the first half, with lower footwear volumes adding to the usual seasonal pattern.
Consultation on UK restructuring is expected to conclude in November, with annual savings of about £4m from 2027 if the plans go ahead. Vietnam customer approvals are expected around the end of 2026, and the next update is due on the 21st of January 2027.