The textile technology group HeiQ Plc closed the 2022 financial year with sobering results. This emerges from an interim report published by the company on Wednesday. In view of the persistently difficult economic conditions, the Group does not anticipate an upswing in the new year.
According to preliminary figures, sales in the past financial year amounted to around 54 to 55 million US dollars (51 to 52 million euros). The company conceded that the proceeds were twenty percent below market expectations. Earnings also fell short of analysts’ forecasts: Management currently expects a pre-tax loss in the range of USD 2.5 to 3.5 million.
After a solid first half of the year and a “reasonable” third quarter, HeiQ suffered in the last few months of the year from consumers’ increasing reluctance to buy and the resulting sharp decline in demand from partner companies, the company explained. In addition, the tightened protective measures against the Covid 19 pandemic in China meant that annual sales there were not even half as high as expected.
Acquisition in the hygiene sector: HeiQ takes over the copper and silver trader Tarn-Pure
The overall situation is not expected to change in 2023 either. The group management therefore only expects sales and gross margins to be at the level of the previous year. The aim is, however, to significantly reduce costs and achieve a positive pre-tax result by means of extensive cost-cutting measures.
Despite the less than pleasing business development, the group announced the next takeover: The Swiss subsidiary HeiQ Materials AG will acquire all shares in the British company Tarn-Pure Holdings Ltd, according to the interim report. Among other things, Tarn-Pure specializes in trading copper and silver for antibacterial applications and has the appropriate permits in the European Union and Great Britain. With the takeover, HeiQ itself will become a leading supplier of copper and silver for the hygiene industry, the company announced.