FY 2021 Trading Update, Notice of Results

HeiQ Plc (LSE: HEIQ), a Swiss IP innovator and established global brand in materials and textile innovation which operates in high-growth markets, announces that the Company’s full year results for the year ended 31 December 2021 (“FY 21”) will be published on Thursday 28 April 2022.

FY 21 Trading Update

The Company expects to report total revenue of US$57.9m, representing a 15% increase compared with 2020 and ahead of market guidance. The Company saw particularly strong sales growth in the fourth quarter of the financial year. In 2021, the Company made further investments into the business to support its growth, increasing its number of employees from 140 to more than 200. Gross margin is expected to be 47% for FY21. HeiQ’s strong recent sales performance demonstrates the increasing demand for its products and technologies across several exciting and growing markets, whilst the headwinds caused by higher raw materials and logistics costs previously flagged in the interim results have continued into the second half of the year, impacting gross margin. Following consultation with the auditors, the board has prudently determined to defer the recognition of certain revenues related to the achievement of technology milestones with The Lycra Company associated with HeiQ’s AeoniQ technology from FY21 into FY22. This has resulted in a deferral of approximately US$1m of operating profit into 2022, previously expected to be recognised in FY 21. Noting the above factors, the Company expects to report operating profit of approximately US$3.4m and net income after taxation of approximately US$2.7m.

HeiQ continues to see strong demand for its products and anticipates revenue growth of approximately 20% for its 2022 financial year. Whilst there remains significant uncertainty in markets globally, the board is confident that HeiQ’s margins will improve during FY22.

News in full

Below is an interview with HeiQ’s CEO & FD, who provide the highlights from last year’s results