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RNS Number : 1410N HeiQ PLC 28 September 2021 28 September 2021 HeiQ Plc ( " HeiQ " or " the Company " ) Interim Results for six months to 30 June 2021 Positive progress in executing growth strategy through strengthened product portfolio and increased customer base despite significant Covid - 19 pandemic related headwinds HeiQ Plc ( LSE : HEIQ ) , an established global brand in materials and textile innovation which operates in high - growth markets , is pleased to announce its interim results for six months to 30 June 2021 . Financial highlights : Revenue of US $ 25.8m , decreased compared to an exceptionally strong pandemic related 1HY 2020 ( US $ 30.1m ) , and up + 27 % compared to 2HY 2020 ( US $ 20.3m ) reflecting consumer driven demand for innovative functionality from brands . Significantly improved operating cash flow to US $ 2.9m , + 930 % on 1HY 2020 ( US $ 0.3m ) Gross profit margin 50.2 % , a decrease from the prior year comparable period 1HY 2020 ( 57.4 % ) as a result of cost increases for freight ( -1.5 % ) , raw materials ( -3 % ) and price pressure on specific products such as personal protection equipment and masks ( -2.5 % ) Adjusted EBITDA of US $ 4.8m , lower than 1HY 2020 ( US $ 12.0m ) and up 147 % on the prior half year period 2HY 2020 ( US $ 1.9m ) Operating costs of US $ 10.6m , up 48 % ( 1HY 2020 : US $ 7.2m ) reflecting the investments across sales channels , digitization , branding , regulatory and innovation in line with our communicated strategy for future growth Well - funded balance sheet with improved US $ 20 million cash and low leverage Operational highlights : Customer base more than doubled organically , especially in Greater China where 140 new mills were added and leading Chinese brands such as such as Fila , BLBM , Xtep and Yougor have been won Three capability - building acquisitions during the period totaling US $ 26.7m , partially paid in shares , strengthening hygiene product offerings : o Acquisition of 51 % of Chrisal B.V. ( Belgium ) , a profitable , high - margin and leading industrial biotech business . Chrisal provides HeiQ with a strong position in the $ 50bn probiotics market . o Acquisition of RAS AG ( Germany ) ( 100 % ) , a company with strong IP in nanowire technologies and antimicrobials for medical applications o Acquisition of 100 % of Life Material Technologies Limited ( Thailand and Brazil ) , a leader in antimicrobial ingredients based on botanical active substances Progress in implementing internal strategic initiatives such as further digitization of the Group to reinforce our sales channels , by establishing a full legal entity in Shanghai , China and onboarding additional sales personnel in different regions . Innovation pipeline saw ten new projects enter the pipeline during the period and seven new product launches . Continued investment into new IP - rich innovations , people , digital , company structure , corporate processes and systems to capitalise on the significant market opportunity available Post period - end highlights : 13 products launched to market in Q3 2021 Continued advancements of exciting innovations such as HeiQ GrapheneXx battery applications and infection preventing coating technology for implants and hard surfaces , aligned with HeiQ's strategy to be a leading materials innovation company , moving beyond textiles Carlo Centonze , co - founder and CEO , HeiQ plc , said : " While external short term headwinds in our daily operations impacted 1HY 2021 , our long - term strategy is delivering and demand for our +200 innovation portfolio remains strong . We have a robust balance sheet and cash position and benefit from low leverage and we continue to see encouraging tailwinds such as the growth in demand for sustainable textiles technology and hygiene functionality which reaffirm our long - term strategy . We are actively engaged in a number of significant projects , which would have an impact on the outcome for the full year . We launched seven new products in 1HY 2021 , 13 in Q3 with two further ones scheduled for Q4 , testament to our position as a trusted innovation partner to blue - chip brands . " HeiQ has a leading reputation in the markets it serves , a proven track record of innovation and differentiation and of acquiring , as well as integrating complimentary businesses . While there are various external market factors that may impact operations that are beyond our control , we remain ideally positioned to gain market share , secure new customers and create value for all our stakeholders with a strong balance sheet and a clear strategy supported by mega- and consumer trends . " This announcement contains inside information For further information , please contact : HeiQ Plc Carlo Centonze ( CEO ) Arlington Group Asset Management ( Financial Advisor and Joint Broker ) Charles Cannon Brookes Limited +41 56 250 68 50 +44 ( 0 ) 207 389 5017 Page 1 of 14