HeiQ PLC on Tuesday reported a double-digit rise in interim revenue despite suffering a fall in profit due to increased administrative expenses, as it expects to meet full-year forecasts.
HeiQ is a London and Zurich-based materials and textile technology company.
For the six months that ended on June 30, HeiQ reported an increase of 17% in revenue to $30.3 million from $25.8 million a year earlier, showing ‘resilience and continued demand’, it said.
Pretax profit, however, fell 65% to $1.2 million from $3.4 million, as cost of sales grew event faster, by 26% to $16.1 million from $12.8 million. What’s more, selling and general administrative expenses widened by 31% to $13.9 million from $10.6 million a year ago.
Chief Executive Officer Carlo Centonze said: ‘Despite the continuing challenging global market conditions and a three-month lockdown in our main market China in Q1 2022, we remain cautiously optimistic and have plans in place to address those challenges and continue making fast progress with commercialisation of our disruptive innovative technologies.’
German luxury fashion firm Hugo Boss AG earlier this year agreed to invest in HeiQ’s sustainable cellulose yarn product, and HeiQ said all contractual milestones with Hugo Boss have been met, releasing $9 million in contractual payments.
It noted in August that the investment by Hugo Boss valued the HeiQ product platform at $200 million, about £170 million, which compares to HeiQ’s own market capitalisation in London of just £100 million.
Looking ahead, HeiQ expects market expectations to be met for 2022, and expects sales in China to gain momentum in the second half of the year as Covid lockdowns ease.
Shares were up 0.7% at 71.00 pence each on Tuesday morning in London.
Copyright 2022 Alliance News Limited. All Rights Reserved.
