Shares in antimicrobial textiles specialist HeiQ (HEIQ) plunged 17% to 195.7p on Tuesday as profit taking took hold following an in-line first trading update.

The shares came to the market on 7 December after the company raised £60 million at 112p giving the company a market capitalisation of £141 million.

Before today’s correction the shares had doubled in value as investors got exited by the potential for the firm’s Viroblock technology which protects fabrics from all known viruses.

HeiQ featured twice in our recent feature where fund managers were asked to identify the company that most excited them in 2021.

REVENUES AHEAD, PROFIT IN LINE

While the company expects to report full year revenues to 31 December 2020 above market expectations, record levels of investment in the second half means operating profit will merely be in line with market expectations.

In the first half of the year revenues grew 124% year-on-year to $30 million and pre-tax profit grew 35% t0 $10.6 million.

Co-founder and chief executive Carlo Centonze said, ‘2020 was a milestone year for HeiQ, characterised by rapid growth and innovation.

‘Not only did we respond quickly to the COVID-19 outbreak by bringing HeiQ Viroblock to market early, we did so while also delivering robust sales growth for many existing products within our 200-strong portfolio of novel textile technologies.

‘These achievements solidified our position as a profitable and fast-growing pioneer in the $24 billion textile chemicals market.’

Heiq will be one to watch because it has built strong intellectual property in materials and textiles innovation as well as partnering with over 200 brands including blue chip names such as Burberry (BRBY) and Ikea.

READ MORE ABOUT HEIQ HERE

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Issue Date: 26 Jan 2021