30th Aug 2022 13:58
HeiQ PLC - London- and Zurich-based materials and textile technology - Expects to report revenue for the first half of 2022 of more than USD30 million, up at least 16% from USD25.8 million a year before, while gross profit margin is expected to widen to 46.7% from 43.7%. HeiQ says that while rising costs of raw materials put pressure on margin in the recent six months, these costs have started to stabilise in the second half. Having passed on price increases, HeiQ says margin improvement has continued, and it expects to trade in line with market guidance for the full year.
German luxury fashion firm Hugo Boss AG earlier this year agreed to invest in HeiQ's sustainable cellulose yarn product, and HeiQ says all contractual milestones with Hugo Boss have been met, releasing USD9 million in contractual payments. Notes the investment by Hugo Boss valued the HeiQ product platform at USD200 million, which compares to HeiQ's own market capitalisation in London of GBP100 million.
HeiQ will publish its half-year results on September 13.
Current stock price: 73.90 pence, up 1.2% on Tuesday
12-month change: down 45%
By Tom Waite; [email protected]
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