HeiQ: Year End Results

28th April 2022

Results for the year ended 31 December 2021

Strengthening of core business and executing on growth strategy

HeiQ Plc (LSE: HEIQ), an established global brand in materials and textile innovation that operates in high-growth markets, is pleased to announce its preliminary results for the full year ended 31 December 2021. The Company’s audited annual report and accounts will be published in May and a further announcement will be made in due course.

Financial highlights:

  • Revenue up 15% to US$57.9 million, ahead of expectations (2020: US$50.4 million)
  • Gross profit margin down 9.2% to 46.6% (2020: 55.8%) due to higher raw materials and logistics cost (price increased as of January 2022)
  • Adjusted EBITDA decreased by 54% to US$6.5 million (2020: US$14.1 million), in line with market expectations and reflecting planned increase in SG&A costs to strengthen innovation and support future growth
  • Profit before tax of US$2.7 million (2020: US$7.1 million) and profit after tax of US$2.5 million (2020: US$5.0 million)
  • A well-funded balance sheet with net cash of US$12.9 million
  • Operating cash flow increased by 215% to US$3.5 million (2020: US$1.1 million)
  • Diluted EPS down 53% to US$0.0201 (2020: US$0.0432)

Operational highlights:

  • Completed 3 industrial biotech and bio-antimicrobials capability building acquisitions in six months for US$27.5 million, strengthening HeiQ’s hygiene offering
  • Launched 20 new products to market and filed 5 new patents
  • Potential blockbuster technologies progressing very positively:
    • Launched HeiQ AeoniQ, the world’s first climate positive fibre with an implied valuation of US$200million and >US$10million investments from HUGO BOSS and The LYCRA Company
    • Patent pending proof of concept for lithium metal batteries achieved for HeiQ GrapheneX
    • Third party high impact publication on HeiQ Synbio as best solution to address nosocomial healthcare acquired infections and multi-resistances in hospitals.
  • Expanded HeiQ Portugal to form a service centre for finance, marketing, and IT
  • Progressed HeiQ’s market leading ESG position by commercializing impactful technologies
  • Significantly expanded HeiQ’s capabilities and team by growing from 140 to more than 200 HeiQans (+20 sales and +30 Innovation)

Post period-end highlights:

  • Made significant investment in the advancement of disruptive technology platforms and their commercialisation
  • Secured investment to commercialize HeiQ AeoniQ, including building a US$5m pilot commercialization plant to be launched to market with high impact brand partners
  • Investing in a US$2m pilot commercialization plant for HeiQ GrapheneX membrane technology and in the process of securing joint development partners
  • First-quarter trading in line with expectations and ahead of same period previous year

Carlo Centonze, co-founder and CEO, HeiQ plc, said:

“Following a momentous 2020, we made continued progress in executing our strategic objectives in 2021, as part of our goal to become a leading materials innovation company. Through the transformative acquisitions of Chrisal, RAS, and Life during the period, our capabilities platform has been significantly strengthened and enhanced, paving the way for additional future success. We continued to make strong progress with our HeiQ GrapheneX and HeiQ Synbio blockbuster technologies, and together with the launch of HeiQ AeoniQ, our climate positive yarn, we are today in a position of tremendous opportunity for value creation.

“In 2022, with the support of our robust foundation from recent acquisitions and innovation, we will continue executing our growth strategy, ensuring we are always one step ahead. The consolidated growth across our core products in existing and new markets has enabled us to be cash generative and will see us continue to invest in the advancement of our disruptive technology platforms and their commercialization. As a result, we will be targeting double digit growth across our existing products in 2022.

“This continues to be an exciting time for HeiQ, with the megatrend tailwinds favouring our offerings. Combined with our existing progress and momentum, the outlook for the Group and our stakeholders is bright and I look forward to keeping shareholders up to date with our progress in the next year.”

News in full

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

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