TIDMHEIQ
RNS Number : 6246R
HeiQ PLC
30 October 2023
30 October 2023
HeiQ Plc
("HeiQ" or "the Company")
Half year results for the period ended 30 June 2023
HeiQ Plc (LSE:HEIQ), a leading company in materials innovation
and hygiene technologies, announces its interim results for the
period ending 30 June 2023 ("H1 2023").
These results are published concurrently with the Company's
final results for the full year ended 31 December 2022 ("FY
22").
Restoration of Trading:
As detailed in the FY 22 results, upon uploading the Annual
Report 2022 to the National Storage Mechanism, expected to be
completed today, the Company will make an immediate request to the
FCA for the Company's Ordinary Shares to be restored to trading on
the Main Market of the London Stock Exchange as soon as practicable
thereafter. A further announcement will be made confirming the
exact time and date of resumption of trading.
Financial Overview:
-- Revenue reduced by 26% to US$20.5 million (H1 2022 restated*: US$27.6 million)
-- Gross profit margin of 40.9% (H1 2022 restated*: 41.5% in H1 2022)
-- Adjusted EBITDA of US-$3.6 million (H1 2022 restated*: US$0.7 million)
-- Operating loss of US-$6.0 million (H1 2022 restated*: US-$1.6 million)
-- Loss after taxation of US$-6.5 million (H1 2022 restated*: profit of US-$1.9 million)
-- Cash balance as at 30 June 2023 of US$7.3 million
* Details on restatements of prior year financial information
are disclosed in Note 2 of t he Consolidated Financial
Statements.
Operational Overview:
Trading conditions for the markets of our commercialized product
range continued to be challenging during H1 2023 and, as
highlighted in detail in our Full Year results for the 12 months to
31 December 2022, the Company took decisive steps to reduce its
cost base and reorganize the business to maintain its innovation
and differentiation capabilities during the period under review.
With costs reduced and operations adapted in light of the
challenging headwinds our entire industry is facing, the Company
expects H2 2023 trading to stabilize.
Post Period:
The Company is closely monitoring the market and is ready to
take further cost reduction action, should it need to. We continue
to add value to our high potential key innovation initiatives
through focused investment, to position ourselves for when the
macro-economic difficulties abate.
While the Board considers the Company has adequate resources, it
is in discussions with financial institutions to replace the
currently uncommitted credit facilities by committed, long-term
facilities.
Equity analyst and shareholder presentations:
Following the resumption of trading in its ordinary shares the
Company will announce registration details for two live
presentations. These presentations will cover today's results and
will be held separately for both equity analysts and investors.
For further information, please contact:
HeiQ Plc
Carlo Centonze (CEO) +41 56 250 68 50
Cavendish Securities Plc (Broker) +44 (0) 207 397
Stephen Keys / Callum Davidson 8900
------------------
SEC Newgate (Media Enquiries) +44 (0) 20 3757
Elisabeth Cowell / Tom Carnegie / Molly 6882
Gretton HeiQ@s ecnewgate
.co.uk
------------------
About HeiQ
HeiQ is a Swiss-based international company that innovates
pioneering and differentiating materials in partnership with
established global brands. We bridge the academic and commercial
worlds to conceive performance-enhancing materials and
technologies, working with aligned brands to research, manufacture
and bring products to market, aiming for lab to consumer in months.
Our goal is to improve the lives of billions by innovating the
materials that go into everyday products, making them more
hygienic, comfortable, protective, and sustainable.
Our strong IP portfolio positions us as an innovation leader for
niche, premium and high-margin products in the textile chemicals,
man-made fibers, paints and coatings, antimicrobial plastics,
probiotics and household cleaner markets. We have also expanded
into healthcare facilities, probiotic cleaning, and hygiene
coatings markets to help make hospitals and healthcare environments
more hygienic.
We have developed over 200 technologies in partnership with 300
major brands. With a substantial research and development pipeline,
including key technology development projects HeiQ AeoniQ, HeiQ
ECOS, HeiQ GrapheneX, and HeiQ Synbio, HeiQ aims to deliver
shareholder value through sales growth and entry into new lucrative
markets through disruptive innovation and M&A.
We have built a strong reputation for ESG & sustainable
innovation, having won multiple awards including the Swiss
Technology Award twice and the Swiss Environmental Award. Under
experienced leadership, we are committed to driving our profit in
close connection with people and the planet. For more information,
please visit www.heiq.com .
Chairwoman's Statement
Due to the delay in the publication of the audited annual
accounts 2022, these interim financial statements 2023 are
published at the same time as the annual accounts 2022.
While further details on trading and HeiQ's performance in H1
2023 can be found in the CEO Statement in the annual report 2022, I
provide a short synopsis here for our investors.
Trading conditions for the markets of our commercialized product
range continued to be challenging during H1 2023 and, as
highlighted in detail in our Full Year results for the 12 months to
December 31, 2022, we took focused steps to reduce our cost base
and reorganize the business during the period under review.
We believe that the actions taken since the start of the year
mean we will be better positioned to manage the challenging
macro-economic environment, while continuing to build value in our
core innovations to preserve our ability to deliver when the market
demand turns.
Financial Review
Results Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
US$'000 US$'000 US$'000
(restated*)
------------------------------------------------------------ ------------- ------------- ------------
Revenue 20,500 27,558 47,202
Cost of sales (12,110) (16,127) (33,745)
Gross profit 8,390 11,431 13,457
Other income 946 2,748 4,832
Selling and general administrative expenses (14,263) (14,016) (30,969)
Impairment loss on intangible assets - - (11,651)
Impairment loss on property, plant & equipment - - (730)
Other expenses (1,075) (1,735) (4,184)
------------------------------------------------------------ ------------- ------------- ------------
Operating loss (6,002) (1,572) (29,245)
Depreciation of property, plant and equipment 710 644 1,282
Amortization of intangible assets 1,069 666 1,435
Depreciation of right-of-use assets 479 497 938
Impairment losses and write-offs - - 13,278
Share options and rights granted to Directors and employees 132 486 138
Adjusted EBITDA (3,612) 721 (12,174)
EBITDA Margin (adjusted) (17.6%) 2.6% (25.8%)
------------------------------------------------------------ ------------- ------------- ------------
*The results have been restated in the comparative period as
described in Note 2 to the consolidated financial statements.
Revenues
Total revenues in H1 2023 decreased by 26% to US$20.5 million
(H1 2022: US$ 27.6 million) driven by weak demand across the
markets in which we operate.
Gross margin
Gross margin slightly decreased from 41.5% in H1 2022 to 40.9%
in H1 2023, driven primarily by overcapacity in the markets which
resulted in price pressure.
Selling & general administration costs "SG&A"
SG&A costs grew by 1.7% to US$14.3 million in H1 2023
compared to the previous year (H1 2022: US$14.0 million). The
Company implemented various cost reduction measures during the
period and expects to see the full benefit of the measures
materialize in H2 2023. Cost saving measures have included a
reduction of FTE's as well as re-location of functions/FTE's to
locations with lower employer costs per FTE.
Liquidity as of 30 June 2023 & Going Concern Assessment
As of June 30, 2023, the Company reports a cash balance of
US$7.3 million (December 31, 2022: US$8.5 million). To manage its
cash balance, the Group has access to credit facilities totalling
CHF9.0 million (approximately US$9.8 million as of September 30,
2023). The credit facilities are in place with two different banks
and both contracts have materially the same conditions. The
facilities are not limited in time, can be terminated by either
party at any time and allow overdrafts and fixed cash advances with
a duration of up to twelve months.
As of September 30, 2023, the Group has drawn CHF6.3 million of
the facilities (CHF2.4 million as of December 31, 2022) (see Note 2
for details including maturity dates). The facilities are not
committed, but the Board has not received any indication from
financing partners that facilities are at risk of being terminated.
Furthermore, the Board is in discussions with financial
institutions to replace the currently uncommitted credit facilities
by committed, long-term facilities, but the outcome of these
discussions remains uncertain.
The Group's directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence
for the foreseeable future and operate within its credit facilities
for the period 12 months from date of signature. Nevertheless, the
Board acknowledges the uncommitted status of the facilities which
could be terminated requiring the refinancing of debts, and which
casts material uncertainty on the going concern assessment until
appropriate longer-term funding is in place. Further disclosures on
the going concern assessment are made in the notes to the financial
statements.
Principal risks and uncertainties
The Group has an established, structured approach to identifying
and assessing the impact of financial and operational risks on its
business. The principal risks and uncertainties for the remainder
of the financial year are not expected to change materially from
those included on pages 38 to 42 of the Annual Report and Accounts
2022. The risks identified relate to the following areas: Delivery
on growth strategy; Increase in competition; Geographical risks; IP
protection and first mover advantage; Regulatory risks;
Reputational risks and failure to build brand equity; Innovation
pipeline; Supply chain disruptions; Personnel/Workforce;
Interruption of IT system operations; Liquidity risk; currency
risks; Product liability. Further information in relation to the
Group's financial position and going concern is included in note
2.
Outlook
With our costs reduced and operations adapted in light of the
challenging headwinds our entire industry is facing, we expect H2
2023 trading to stabilize. We are closely monitoring the market and
are ready to take further cost reducing action, should we need to.
We continue to add value to our high potential key innovation
initiatives through focused investment, to position ourselves for
when the macro-economic difficulties abate.
I would like to end my statement by thanking our investors,
team, advisors and customers for their support during what has been
a very challenging period for the company.
Esther Dale-Kolb
Chairwoman
October 26, 2023
Condensed consolidated statement of profit and loss and other
comprehensive income
For the six months ended June 30, 2023
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Note US$'000 US$'000 US$'000
(restated*)
------------------------------------------------------------- ---- ------------- ------------- ------------
Revenue 5 20,500 27,558 47,202
Cost of sales 7 (12,110) (16,127) (33,745)
Gross profit 8,390 11,431 13,457
Other income 8 946 2,748 4,832
Selling and general administrative expenses 9 (14,263) (14,016) (30,969)
Impairment loss on intangible assets 16 - - (11,651)
Impairment loss on property, plant & equipment 17 - - (730)
Other expenses 11 (1,075) (1,735) (4,184)
------------------------------------------------------------- ---- ------------- ------------- ------------
Operating loss (6,002) (1,572) (29,245)
Finance income 12 5 442 683
Finance costs 13 (384) (524) (1,273)
Loss before taxation (6,381) (1,654) (29,835)
Income tax 14 (146) (254) 21
------------------------------------------------------------- ---- ------------- ------------- ------------
Loss after taxation (6,527) (1,908) (29,814)
------------------------------------------------------------- ---- ------------- ------------- ------------
Other comprehensive income:
Exchange differences on translation of foreign operations 429 (1,090) (1,914)
------------------------------------------------------------- ---- ------------- ------------- ------------
Items that may be reclassified to profit or loss in
subsequent periods 429 (1,090) (1,914)
Actuarial gains/(losses) from defined benefit pension plans - - 1,380
Income tax relating to items that will not be reclassified
subsequently to profit or loss - - (276)
------------------------------------------------------------- ---- ------------- ------------- ------------
Items that will not be reclassified to profit or loss in
subsequent periods - - 1,104
------------------------------------------------------------- ---- ------------- ------------- ------------
Other comprehensive income (loss) for the year 429 (1,090) (810)
------------------------------------------------------------- ---- ------------- ------------- ------------
Total comprehensive loss for the year (6,098) (2,998) (30,624)
------------------------------------------------------------- ---- ------------- ------------- ------------
Loss attributable to:
Equity holders of HeiQ (6,436) (1,705) (29,251)
Non-controlling interests (91) (203) (563)
------------------------------------------------------------- ---- ------------- ------------- ------------
(6,527) (1,908) (29,814)
------------------------------------------------------------- ---- ------------- ------------- ------------
Total Comprehensive loss attributable to:
Equity holders of the Company (6,007) (2,795) (30,061)
Non-controlling interests (91) (203) (563)
------------------------------------------------------------- ---- ------------- ------------- ------------
(6,098) (2,998) (30,624)
------------------------------------------------------------- ---- ------------- ------------- ------------
Loss per share:
Basic (cents) ** (4.58) (1.29) (21.92)
------------------------------------------------------------- ---- ------------- ------------- ------------
*The consolidated statement of profit and loss and other
comprehensive income has been restated in the comparative period as
described in Note 2.
**The effect of share options is anti-dilutive and therefore not
disclosed.
Condensed consolidated statement of financial position
As at June 30, 2023
As at As at As at
June 30, June 30, December 31,
2023 2022 2022
Note US$'000 US$'000 US$'000
(restated*)
ASSETS
Intangible assets 16 21,672 32,766 20,442
Property, plant and equipment 17 8,944 6,823 9,802
Right-of-use assets 18 8,355 8,163 7,819
Deferred tax assets 28 579 1,510 538
Other non-current assets 19 182 153 137
------------------------------------------ ----- ---------- ------------ --------------
Non-current assets 39,732 49,415 38,738
------------------------------------------ ----- ---------- ------------ --------------
Inventories 20 14,406 16,184 13,168
Trade receivables 21 8,256 18,118 6,487
Other receivables and prepayments 22 4,231 2,022 4,262
Cash and cash equivalents 7,274 9,488 8,488
------------------------------------------ ----- ---------- ------------ --------------
Current assets 34,167 45,812 32,405
------------------------------------------ ----- ---------- ------------ --------------
Total assets 73,899 95,227 71,143
------------------------------------------ ----- ---------- ------------ --------------
EQUITY AND LIABILITIES
Issued share capital and share premium 24 206,246 200,606 205,874
Other reserves 26 (127,456) (127,862) (128,017)
Retained deficit (45,902) (10,775) (39,466)
Equity attributable to HeiQ shareholders 32,888 61,969 38,391
Non-controlling interests 1,857 2,087 1,948
------------------------------------------ ----- ---------- ------------ --------------
Total equity 34,745 64,056 40,339
------------------------------------------ ----- ---------- ------------ --------------
Lease liabilities 7,089 7,148 6,558
Long-term borrowings 27 1,866 1,561 1,445
Deferred tax liability 28 1,337 2,144 1,253
Other non-current liabilities 29 5,772 7,593 4,714
------------------------------------------ ----- ---------- ------------ --------------
Total non-current liabilities 16,064 18,446 13,970
------------------------------------------ ----- ---------- ------------ --------------
Trade and other payables 30 8,653 6,959 5,322
Accrued liabilities 31 3,692 2,178 4,978
Income tax liability 14 243 111 314
Deferred revenue 32 1,365 672 1,285
Short-term borrowings 27 7,471 1,583 2,893
Lease liabilities 1,121 1,130 1,264
Other current liabilities 34 545 92 778
------------------------------------------ ----- ---------- ------------ --------------
Total current liabilities 23,090 12,725 16,834
------------------------------------------ ----- ---------- ------------ --------------
Total liabilities 39,154 31,171 30,804
------------------------------------------ ----- ---------- ------------ --------------
Total equity and liabilities 73,899 95,227 71,143
------------------------------------------ ----- ---------- ------------ --------------
*The comparative period of the consolidated statement financial
position has been added this year because it was restated as
described in Note 2.
The Notes form an integral part of these Condensed Consolidated
Financial Statements. The Financial Statements were approved and
authorized for issue by the Board of Directors on October 26, 2023
and signed on its behalf by:
Xaver Hangartner
Chief Financial Officer
Condensed consolidated statement of changes in equity
For the six months ended June 30, 2023
Equity
Issued share attributable
capital and Retained to HeiQ Non-controlling
share premium Other reserves deficit shareholders interests Total equity
Note US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Balance at
January 1, 2022 195,714 (127,195) (11,525) 56,994 2,541 59,535
Loss after
taxation - - (29,251) (29,251) (563) (29,814)
Other
comprehensive
(loss)/income - (810) - (810) - (810)
Total
comprehensive
(loss)/income
for the year - (810) (29,251) (30,061) (563) (30,624)
---------------- ---- -------------- -------------- --------------- -------------- --------------- ------------
Issuance of
shares 24 10,160 - - 10,160 - 10,160
Share-based
payment charges 26 - (12) - (12) - (12)
Dividends paid
to minority
shareholders 26 - - - - (243) (243)
Capital
contributions
from minority
shareholders - - - - 764 764
Adjustments
arising from
change in
non-controlling
interests - - (2,445) (2,445) (616) (3,061)
Transfer on
disposal of
non-controlling
interest - - 3,755 3,755 65 3,820
Transactions
with owners 10,160 (12) 1,310 11,458 (30) 11,428
Balance at
December 31,
2022 205,874 (128,017) (39,466) 38,391 1,948 40,339
---------------- ---- -------------- -------------- --------------- -------------- --------------- ------------
Loss after
taxation - - (6,436) (6,436) (91) (6,527)
Other
comprehensive
(loss)/income - 429 - 429 - 429
Total
comprehensive
(loss)/income
for the year - 429 (6,436) (6,007) (91) (6,098)
---------------- ---- -------------- -------------- --------------- -------------- --------------- ------------
Issuance of
shares 24 372 - - 372 - 372
Share-based
payment charges 26 - 132 - 132 - 132
Transactions
with owners 372 132 - 504 - 504
Balance at June
30, 2023 206,246 (127,456) (45,902) 32,888 1,857 34,745
---------------- ---- -------------- -------------- --------------- -------------- --------------- ------------
Condensed consolidated statement of cash flows
For the six months ended June 30, 2023
Six months to Six months to Year ended
June 30, 2023 June 30, 2022 December 31, 2022
Note US$'000 US$'000 US$'000
(Restated*)
---------------------------------------------------------- ------ -------------- -------------- ------------------
Cash flows from operating activities
Loss before taxation (6,381) (1,654) (29,835)
Cash flow from operations reconciliation:
Depreciation and amortization 16-18 2,258 1,807 3,655
Impairment expense 11 - - 12,380
Net loss on disposal of assets 17 3 (5)
Write-off of intangible assets 11 14 - 897
Fair value gain on derivative liability 8 (248) - (371)
Finance costs 217 124 273
Finance income (5) (1) (2)
Pension expense 43 117 247
Non-cash equity compensation 25 132 486 138
Gain from lease modification (9) (68) (68)
Other costs paid in shares 24 - - 235
Currency translation (594) (684) (61)
Working capital adjustments:
(Increase)/decrease in inventories 37 (1,238) (2,414) 602
Decrease/(Increase) in trade and other receivables 37 (1,617) (1,608) 7,783
(Decrease)/Increase in trade and other payables 37 3,118 2,448 2,543
---------------------------------------------------------- ------ -------------- -------------- ------------------
Cash used in operations (4,293) (1,444) (1,589)
Taxes paid 14 (506) (529) (870)
---------------------------------------------------------- ------ -------------- -------------- ------------------
Net cash used in operating activities (4,799) (1,973) (2,459)
---------------------------------------------------------- ------ -------------- -------------- ------------------
Cash flows from investing activities
Consideration for acquisition of businesses 37 - (1,587) (1,587)
Cash assumed in asset acquisition 37 2 - 65
Purchase of property, plant and equipment 17 (584) (1,060) (3,418)
Proceeds from the disposal of property, plant and
equipment 815 37 53
Development and acquisition of intangible assets 16 (665) (1,946) (3,865)
Interest received 5 1 2
---------------------------------------------------------- ------ -------------- -------------- ------------------
Net cash used in investing activities (427) (4,555) (8,750)
---------------------------------------------------------- ------ -------------- -------------- ------------------
Cash flows from financing activities
Interest paid on borrowings (122) (42) (110)
Repayment of leases (614) (452) (992)
Interest paid on leases (95) (82) (163)
Proceeds from disposals of minority interests - 2,459 4,792
Proceeds from borrowings 27 4,998 823 3,465
Repayment of borrowings 27 (265) (197) (904)
Dividends paid to minority shareholders 26 - (243) (243)
Net cash from financing activities 3,902 2,266 5,845
---------------------------------------------------------- ------ -------------- -------------- ------------------
Net decrease in cash and cash equivalents (1,324) (4,262) (5,364)
---------------------------------------------------------- ------ -------------- -------------- ------------------
Cash and cash equivalents - beginning of the year 8,488 14,560 14,560
Effects of exchange rate changes on the balance of cash
held in foreign currencies 110 (810) (708)
---------------------------------------------------------- ------ -------------- -------------- ------------------
Cash and cash equivalents - end of the year 7,274 9,488 8,488
---------------------------------------------------------- ------ -------------- -------------- ------------------
* The consolidated statement of cash flows has been restated for
the comparative period as described in Note 2.
Notes to the Condensed Consolidated Financial Statements for the
six months ended June 30, 2023
1. General information
HeiQ Plc (the Company) is a company limited by shares
incorporated and registered in the United Kingdom. Its ultimate
controlling party is HeiQ Plc. The address of the Company's
registered office is 5th Floor, 15 Whitehall, London, SW1A 2DD.
These financial statements are presented in United States
Dollars (US$) which is the presentation currency of the Group, and
all values are rounded to the nearest thousand dollars except where
otherwise indicated.
2. Basis of preparation and measurement
Basis of preparation
The unaudited condensed consolidated interim financial
statements have been prepared in accordance with the Disclosure and
Transparency Rules of the Financial Conduct Authority and
International Accounting Standard 34 "Interim Financial Reporting"
(IAS 34). Other than as noted below, the accounting policies
applied by the Group in the preparation of these interim financial
statements are the same as those set out in the Company's audited
financial statements for the year ended December 31, 2022. These
financial statements have been prepared under the historical cost
convention except for certain financial and equity instruments that
have been measured at fair value.
These condensed financial statements do not include all of the
information required for a complete set of IFRS financial
statements. However, selected explanatory notes are included to
explain events and transactions that are significant to an
understanding of the changes in the Company's financial position
and performance since the audited financial statements for the year
ended December 31, 2022.
Statutory accounts for the year ended December 31, 2022 have
been filed with the Registrar of Companies in October 2023 and the
auditor's report was unqualified, did not contain any statement
under Section 498(2) or 498(3) of the Companies Act 2006, and
contained a matter (material uncertainty in regards to the going
concern assumption) to which the auditors drew attention without
qualifying their report.
The condensed interim financial statements are unaudited and
have not been reviewed by the auditors and were approved by the
Board of Directors on October 26, 2023.
Going concern
The unaudited condensed consolidated interim financial
statements have been prepared on a going concern basis, which
contemplates the continuity of normal business activity and the
realization of the assets and the settlement of liabilities in the
normal course of business.
To manage its cash balance, the Group has access to credit
facilities totalling CHF9.0 million (approximately US$9.8 million
as of September 30, 2023). The credit facilities are in place with
two different banks but with materially the same conditions. The
facilities are not limited in time, can be terminated by either
party at any time and allow overdrafts and fixed cash advances with
a duration of up to twelve months. In case one or the other party
terminates the agreement, fixed cash advances become due upon their
defined maturity date. The facilities do not contain financial
covenants, but they do require the delivery of certain financial
and operational information within a defined timeframe after the
balance sheet date. As the publication of audited accounts for the
year 2022 was delayed, the Company was not able to submit these
accounts within the contractually defined timeframe but has
received extensions to do so from both banks until October 31,
2023.
As of September 30, 2023, the Group has drawn CHF6.3 million of
the facilities (CHF2.4 million as December 31, 2022) as
follows:
Term / Maturity date CHF
---------------------- ------------
November 27, 2023 4.5 million
June 17, 2024 0.8 million
September 30, 2024 1.0 million
The Group's forecasts and projections for the next 12 months
reflect the very challenging trading environment and show that the
Group should be able to operate within the level of its current
facility for at least 12 months from the date of signature of these
financial statements if the facility drawdowns remain available.
While the facilities are not committed, the Board has not received
any indication from financing partners that the facilities are at
risk of being terminated. Furthermore, the Board is in discussions
with financial institutions to replace the currently uncommitted
credit facilities by committed, long-term facilities, but the
outcome of these discussions remains uncertain.
Nevertheless, the Board acknowledges the uncommitted status of
the facilities which could be terminated without notice during the
forecast period requiring the refinancing of debts as per above
maturity date indicates that a material uncertainty exists that may
cast significant doubt on the Group's and Parent Company's ability
to continue as a going concern, and therefore the Group may not be
able to realize its assets and discharge its liabilities in the
normal course of business.
After considering the forecasts, sensitivities, and mitigating
actions available to management and having regard to the risks and
uncertainties to which the Group is exposed (including the material
uncertainty referred to above), the Group's directors have a
reasonable expectation that the Group has adequate resources to
continue in operational existence for the foreseeable future and
operate within its credit facilities for the period 12 months from
date of signature. Accordingly, the financial statements continue
to be prepared on a going concern basis.
Basis of consolidation
The Condensed Consolidated Financial Statements comprise the
financial statements of the Company and its subsidiaries. Business
combinations are accounted for under the acquisition method.
Restatement of prior period errors
As explained in Note 2 of the 2022 statutory accounts, several
errors were corrected which affected the years ended December 31
2022 and December 31 2021. These corrections led to the following
restatements of the June 30, 2022 accounts:
Overstatement of lease assets and liabilities: Similarly to the
correction as per December 31, 2021, mainly balance sheet accounts
were affected by the restatement. Right-of-use assets and lease
liabilities were derecognized, and some payables were reclassified
to loans.
PPA Chrisal: Accounting for 51% of intangible assets acquired
instead of 100%: The correction of the error led to an increase in
intangible assets as disclosed in the restated 2021 accounts,
however, with the higher base amount amortization for the six
months ended June 30, 2022 is also higher for the period which is
reflected in an overall smaller adjustment to the balance
sheet.
Correcting revenue recognition of take-or-pay contracts: The
correction of the revenue recognition in years prior to 2022, led
to smaller balances of trade receivable and accrued liabilities
being carried forward to the June 2022 accounts.
Goodwill impairment Chrisal CGU and RAS CGU: The intangible
asset balance brought forward to June 2022 has been reduced by the
goodwill impairment posted in the 2021 accounts.
Correcting revenue recognition of R&D services: Revenues
amounting to $2 million for R&D services were incorrectly
recognized in the 2022 interim statements. During the audit of 2022
financial statements, it was found that the Group's performance
obligations relating to a research and development project had not
been fulfilled and that revenue recognition in relation to
milestones was not appropriate. A further US$3.3 million of
deferred revenue has been reclassified to long-term as a
consequence of this change in accounting policy.
The effect of the restatements on the six months ended June 30,
2022 is shown in the following tables:
Consolidated statement of financial position
June 30, 2022
Restatement Restatement Restatement
As Revenue Goodwill Restatement Restatement R&D
US$'000 presented recognition impairment Leasing PPA Chrisal revenues As Restated
----------------- ----------- ------------ ------------ ------------ ------------ ------------ ----------------
Assets
Intangible
assets 33,448 - (2,310) - 1,628 - 32,766
Right-of-use
assets 9,114 - - (951) - - 8,163
Deferred tax
assets 874 - - - - - 1,510
Trade
receivables 21,512 (3,394) - - - - 18,118
Other
receivables and
prepayments 5,143 (3,121) - - - - 2,022
Total Assets 102,739 (5,879) (2,310) (951) 1,628 - 95,227
Capital and
reserves
Retained deficit (2,249) (3,957) (2,310) 3 (262) (2,000) 10,775 (10,775)
Non-controlling
interests 601 - - 3 1,483 - 2,087
Total Equity 71,096 (3,957) (2,310) 6 1,221 (2,000) 64,056
Liabilities
Leases
(non-current) 7,977 - - (829) - - 7,148
Long-term
borrowings 668 - - 893 - - 1,561
Deferred tax
liability 1,737 - - - 407 - 2,144
Other
non-current
liabilities 2,293 - - - - 5,300 7,593
Trade and other
payables 7,928 - - (969) - - 6,959
Accrued
liabilities 4,100 (1,922) - - - - 2,178
Deferred revenue 3,972 - - - - (3,300) 672
Short-term
borrowings 1,503 - - 80 - - 1,583
Leases (current) 1,262 - - (132) - - 1,130
Total
Liabilities 31,643 (1,922) - (957) 407 - 31,171
Consolidated statement of comprehensive income
June 30, 2022
Restatement Restatement Restatement
Revenue Goodwill Restatement Restatement R&D
US$'000 As presented recognition impairment Leasing PPA Chrisal revenues As Restated
----------------- ------------- ------------ ------------ ------------- ------------- ------------ ------------
Net result for
the period
Revenue 30,280 (722) - - - (2,000) (27,558)
Selling and
general
administration
expense (13,878) - - (7) (131) - (14,016)
Finance costs (537) - - 13 - - (524)
Income tax (287) - - - 33 - (254)
Income (loss)
after taxation 906 (722) - 6 (98) (2,000) (1,654))
Income (loss)
after taxation
attributable to
HeiQ
Stockholders 1,112 (722) - 3 (98) (2,000) (1,705)
Income after
taxation
attributable to
non-controlling
interest (206) - - 3 - - (203)
Income (loss)
after taxation 906 (722) - 6 (98) (2,000) (1,908)
Earnings per share
June 30, 2022
Restatement Restatement
Revenue Goodwill Restatement Restatement Restatement
US$'000 As presented recognition impairment Leasing PPA Chrisal R&D revenues As Restated
-------------- ------------- ------------- ------------- ------------- ------------- ------------- ------------
Basic
earnings
(loss) per
share 0.84 (0.55) - - (0.07) (1.51) (1.29)
New standards, interpretations and amendments not yet effective
for the current period
The following new standards and amendments were effective for
the first time in these financial statements but did not have a
material effect on the Group:
-- Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2);
-- Classification of Liabilities as Current or Non-current (Amendments to IAS 1);
-- Definition of Accounting Estimates (Amendments to IAS 8); and
-- Deferred Tax Related to Assets and Liabilities arising from a
Single Transaction (Amendments to IAS 12).
3. Significant accounting policies
The Company has applied the same accounting policies and methods
of computation in its interim consolidated financial statements as
in its 2022 financial statements.
New and amended standards and Interpretations issued by the IASB
that will apply for the first time in the next annual financial
statements are not expected to impact the Group as they are either
not relevant to the Group's activities or require accounting which
is consistent with the Group's current accounting policies.
Use of estimates and judgements
There have been no material revisions to the nature and amounts
of estimates of amounts reported in prior periods.
4. Significant events and transactions
Acquisition of Tarn Pure
On January 12, 2023, HeiQ Plc, completed the acquisition of the
entire issued share capital of Tarn-Pure Holdings Ltd
("Tarn-Pure"). Tarn-Pure is a UK-based intellectual property
company holding critical EU and UK regulatory registrations to sell
elemental copper and elemental silver for use in disinfecting
hygiene applications. To acquire Tarn-Pure, HeiQ paid the vendors
GBP530,000 (approximately US$621,000) in cash with an additional
GBP317,000 (approximately US$372,000) satisfied through the
issuance of 455,435 new ordinary shares of 30p each in the Company
(the "Consideration Shares"), issued at a price of 69.6p per share
resulting in a total consideration of GBP847,000 (approximately
US$993,000). The purchase price allocation has not been finalized
yet and is subject to possible changes in valuation of the assets
acquired. it will be completed in the 2023 annual report.
The following table provides an overview of the preliminary
purchase price allocation. It summarizes the consideration paid,
the fair value of assets acquired, liabilities assumed, and
goodwill arising on acquisition at the acquisition date.
Preliminary purchase price allocation US$'000
Consideration:
Cash paid to shareholders 621
Shares issued to shareholders 372
---------------------------------------------- --------
Total Consideration 993
---------------------------------------------- --------
Fair value of net assets acquired:
Inventory 13
Cash 2
Trade and other receivables 23
Borrowings (42)
Intangible assets identified on acquisition:
Customer Relationship 123
Regulatory asset 682
Deferred tax liability on intangible assets (201)
---------------------------------------------- --------
Total net assets 599
---------------------------------------------- --------
Goodwill 394
---------------------------------------------- --------
Total 993
---------------------------------------------- --------
5. Revenue
The Group's focus on materials innovation which includes
scientific research, manufacturing and consumer ingredient
branding. The primary source of revenue is the production and sale
of functional ingredients, materials and finished goods. Other
sources of revenue include research and development, take-or-pay
and exclusivity services.
The following table reconciles HeiQ Group's revenue for the
periods presented:
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Revenue by type of product US$'000 US$'000 US$'000
------------------------------------ ------------- ------------- -------------
Revenue recognized at point in time
Functional ingredients 15,747 21,156 36,175
Functional materials 546 434 2,000
Functional consumer goods 2,702 5,042 6,827
Services 980 160 160
Revenue recognized over time
Services 525 766 2,040
------------------------------------ ------------- ------------- -------------
Total revenue 20,500 27,558 47,202
------------------------------------ ------------- ------------- -------------
Unsatisfied performance obligations
The transaction prices allocated to unsatisfied and partially
unsatisfied obligations at June 30, 2023 are as set out below:
As at As at
June 30, December 31,
2023 2022
Unsatisfied performance obligations US$'000 US$'000
------------------------------------------- ---- ---- ---------- --------------
Exclusivity services 1,800 2,100
Research and development services 3,500 3,750
Total unsatisfied performance obligations 5,300 5,850
------------------------------------------------------- ---------- --------------
Management expects that 10 per cent of the transaction price
allocated to the unsatisfied contracts as of June 2023 will be
recognized as revenue during the 2023 reporting period (US$0.5
million). The remaining 90 per cent, US$4.8 million will be
recognized in the 2024 (US$1.1 million), 2025 (US$3.1 million) and
2026 financial year (US$0.6 million).
Disclosure related to contracts with customers
Contract assets and contract liabilities are disclosed under
Note 23 and Note 33, respectively. Impairment losses recognized on
any receivables or contract assets arising from the Group's
contracts with customers are disclosed under Note 21 and Note 23,
respectively.
6. Operating Segments
Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker, who is responsible for
allocating resources and assessing performance of the operating
segments, has been identified as the Board of Directors of the
Company.
For management purposes, the Group is organised into business
units and the following reportable segments:
Segment Activity
-------------------- ------------------------------------------------------------------------------------------------
Textiles & Flooring Provide innovative ingredients to make textiles & flooring more functional, durable and
sustainable.
-------------------- ------------------------------------------------------------------------------------------------
Life Sciences Offer biotech solutions to replace harmful substances in domestic, commercial and industrial
usage, for a more balanced microbiome and environment
-------------------- ------------------------------------------------------------------------------------------------
Antimicrobials Functionalize different hard surfaces in everyday products and our surroundings
-------------------- ------------------------------------------------------------------------------------------------
Other activities All other activities of the Group including Innovation Services, Business Development, and
other non-allocated functions.
In 2023 new overhead allocation rules were introduced and as a
result more overhead costs were allocated to segments. 2022 segment
revenue and profits are restated below using the new rules to allow
for like for like comparison.
Segment revenues and profits
The following is an analysis of the Group's revenue and results
by reportable segment:
Textiles & Flooring Life Sciences Antimicrobials Other activities Total
----------------------------
Six months to June 30, 2023 US$'000 US$'000 US$'000 US$'000 US$'000
---------------------------- ------------------- ------------- -------------- ---------------- --------
Revenue 15,531 2,479 1,164 1,326 20,500
Operating profit (loss) 1,117 (693) (1,710) (4,716) (6,002)
Finance result (379)
Loss before taxation (6,381)
Taxation (146)
---------------------------- ------------------- ------------- -------------- ---------------- --------
Loss after taxation (6,527)
---------------------------- ------------------- ------------- -------------- ---------------- --------
Depreciation and amortization
------------------------------ --------- ------------------ ---------- ------------ ----------
Property, plant and equipment 298 171 15 227 710
Right-of use assets 90 74 22 292 479
Intangible assets 144 (144) 277 401 247 1,069
Impairment loss
------------------------------ ------------------- ------------- -------------- ---------------- -------
Property, plant and equipment - - - - -
Intangible assets - - - - -
Textiles & Flooring Life Sciences Antimicrobials Other activities Total
------------------------------
Six months to June 30, 2022 US$'000 US$'000 US$'000 US$'000 US$'000
------------------------------ ------------------- ------------- -------------- ---------------- -------
Revenue 19,538 3,891 3,028 1,102 27,558
Operating profit (loss) 2,682 (537) (468) (3,249) (1,572)
Finance result (82)
Loss before taxation (1,654)
Taxation (254)
------------------------------ ------------------- ------------- -------------- ---------------- -------
Loss after taxation (1,908)
------------------------------ ------------------- ------------- -------------- ---------------- -------
Depreciation and amortization
------------------------------ ----------- ----------- ----------- ------------- -------
Property, plant and equipment 208 173 17 246 644
Right-of use assets 75 72 24 325 497
Intangible assets 36 274 349 7 666
Impairment loss
-----------------------------
Property, plant and equipment - - - - -
Intangible assets - - - - -
Textiles
& Flooring Life Sciences Antimicrobials Other activities
------------------------
US$'000 US$'000 US$'000 US$'000 Total
Year ended December 31,
2022 (restated) (restated) (restated) (restated) US$'000
------------------------ ------------ ------------- -------------- ---------------- --------------------
Revenue 34,184 6,164 4,182 2,672 47,202
Operating profits loss (4,231) (5,537) (10,116) (9,359) (29,245)
Finance result (590)
Loss before taxation (29,835)
Taxation 21
------------------------ ------------ ------------- -------------- ---------------- --------------------
Loss after taxation (29,814)
------------------------ ------------ ------------- -------------- ---------------- --------------------
Depreciation and amortization
------------------------------ ----- --- --- --- ------------
Property, plant and equipment 334 335 28 585 1,282
Right-of use assets 123 145 42 628 938
Intangible assets (107) 550 699 293 1,435
Impairment loss
------------------------------ ------ ------ ------ -------
Property, plant and equipment - 730 - - 730
Intangible assets - 2,402 8,247 1,002 11,651
Segment revenue reported above represents revenue generated from
external customers. There were no intersegment sales in the six
months ended June 30, 2023 (2022: nil).
Geographic information
Six months to June 30, 2023 Six months to June 30, 2022 Year ended December 31, 2022
Revenue by region US$'000 US$'000 US$'000
----------------------- ---------------------------- ---------------------------- -----------------------------
North & South America 9,694 11,098 20,425
Asia 4,798 8,955 13,376
Europe 5,848 7,327 13,109
Others 160 178 293
------------------------ ---------------------------- ---------------------------- -----------------------------
Total revenue 20,500 27,558 47,202
------------------------ ---------------------------- ---------------------------- -----------------------------
As at As at December 31,
June 30, 2023 2022
Non-current assets by region US$'000 US$'000
------------------------------ -------------- -------------------
Europe 28,956 22,290
Asia 2,701 8,102
North & South America 7,557 7,734
Others 518 612
------------------------------- -------------- -------------------
Total non-current assets 39,732 38,738
------------------------------- -------------- -------------------
Information about major customers
During the six months ended June 30, 2023, no customers
individually totalled more than 10% of total revenues (2022:
none).
7. Cost of sales
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Cost of sales US$'000 US$'000 US$'000
----------------------------------------------- ---- -------------- -------------- --------------
Material expenses 10,351 12,114 20,942
Personnel expenses 1,563 1,477 2,830
Depreciation of property, plant and equipment 352 342 652
Other costs of sales (156) 2,194 9,321
----------------------------------------------------- -------------- -------------- --------------
Total cost of sales 12,110 16,127 33,745
----------------------------------------------------- -------------- -------------- --------------
Other costs of goods sold include freight and custom costs,
warehousing and allowances on inventory.
8. Other income
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Other income US$'000 US$'000 US$'000
-------------------------------------------------- ---- -------------- -------------- --------------
Gain on disposal of property plant and equipment 12 9 21
Foreign exchange gains 517 2,334 3,539
Fair value gain on derivative liabilities 248 - 371
Other income 169 405 901
-------------------------------------------------------- -------------- -------------- --------------
Total other income 946 2,748 4,832
-------------------------------------------------------- -------------- -------------- --------------
9. Selling and general administration expenses
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
-----------------------------------------------------------
US$'000 US$'000 US$'000
Selling and general administration expenses (restated*)
----------------------------------------------------------- ---- -------------- -------------- --------------
Personnel expenses 6,849 7,808 14,977
Depreciation of property, plant and equipment 358 302 630
Amortization 1,069 666 1,435
Depreciation of right-of-use assets 479 497 938
Net credit losses on financial assets and contract assets - - 85
Other 5,508 4,743 12,904
----------------------------------------------------------------- -------------- -------------- --------------
Total selling and general administration expenses 14,263 14,016 30,969
----------------------------------------------------------------- -------------- -------------- --------------
Other selling and general administration expenses include costs
for infrastructure, professional services and marketing as well as
R&D and laboratory related costs, information technology &
data expenses, sales representative & distribution
expenses.
10. Personnel expenses
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Personnel expenses US$'000 US$'000 US$'000
--------------------------------------- ---- -------------- -------------- --------------
Wages & salaries 7,224 7,930 15,274
Social security & other payroll taxes 802 624 1,685
Pension costs 254 244 710
Share-based payments 132 486 138
--------------------------------------------- -------------- -------------- --------------
Total personnel expenses 8,412 9,285 17,807
--------------------------------------------- -------------- -------------- --------------
Reported as cost of sales (Note 7) 1,563 1,477 2,830
Reported as selling and general administration expense (Note 9) 6,849 7,808 14,977
------------------------------------------------------------------ ------ ------ -------
Total personnel expenses 8,412 9,285 17,807
------------------------------------------------------------------ ------ ------ -------
11. Other expenses
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Other expenses US$'000 US$'000 US$'000
-------------------------------------------------------- ---- -------------- -------------- --------------
Foreign exchange losses 928 1,621 3,050
Loss on disposal of property, plant and equipment 30 12 16
Transaction costs relating to mergers and acquisitions 23 - 50
Write off intangible assets 14 - 897
Other 80 102 171
-------------------------------------------------------------- -------------- -------------- --------------
Total other expenses 1,075 1,735 4,184
-------------------------------------------------------------- -------------- -------------- --------------
12. Finance income
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Finance income US$'000 US$'000 US$'000
---------------------------------------- ---- -------------- -------------- --------------
Interest income 3 1 5
Gains on foreign currency transactions - 440 678
Other 2 1 -
---------------------------------------------- -------------- -------------- --------------
Total finance income 5 442 683
---------------------------------------------- -------------- -------------- --------------
13. Finance costs
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
US$'000 US$'000 US$'000
---------------------------------------
Finance costs (restated*)
--------------------------------------- ---- -------------- -------------- --------------
Lease finance expense 95 81 163
Interest on borrowings 122 43 110
Bank fees 167 34 98
Loss on foreign currency transactions - 366 902
--------------------------------------------- -------------- -------------- --------------
Total finance costs 384 524 1,273
--------------------------------------------- -------------- -------------- --------------
14. Income tax
The components of the provision for taxation on income included
in the "Statement of profit or loss and other comprehensive income"
are summarized below:
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022 2022
Current income tax expense US$'000 US$'000 US$'000
-------------------------------------------- ---- -------------- -------------- --------------
Swiss corporate income taxes 21 30 58
United States state and federal taxes 101 383 393
Taiwan corporate income taxes 81 78 118
Belgium corporate income taxes 83 76 (123)
Germany corporate income taxes - (17) 51
Others 11 79 63
-------------------------------------------------- -------------- -------------- --------------
Total current income tax expense 297 629 560
-------------------------------------------------- -------------- -------------- --------------
Deferred income tax expense (restated*)
-------------------------------------------- ---- -------------- -------------- --------------
Switzerland (22) (69) 90
United States (4) (71) (606)
China (2) (128) 117
Austria (2) (4) 20
Belgium (68) (71) (136)
Others (53) (32) (66)
-------------------------------------------------- -------------- -------------- --------------
Total deferred income tax expense (income) (151) (375) (581)
-------------------------------------------------- -------------- -------------- --------------
Total income tax expense (income) (146) (254) (21)
-------------------------------------------------- -------------- -------------- --------------
As at June 30, As at December 31,
2023 2022
Net tax (assets)/liabilities US$'000 US$'000
----------------------------------- --------------- -------------------
Opening balance - (prepaid taxes) (343) 51
Assumed on asset acquisition - (32)
Income tax expense for the year 297 560
Taxes paid (506) (870)
Foreign currency differences (3) (52)
------------------------------------ --------------- -------------------
Net tax (asset)/liability (555) (343)
------------------------------------ --------------- -------------------
As at As at
June 30, December 31,
2023 2022
Net tax (assets) liabilities US$'000 US$'000
----------------------------------- --------------- -------------------
Prepaid income taxes (798) (657)
Income tax liabilities 243 314
------------------------------------ --------------- -------------------
Net tax (asset)/liability (555) (343)
------------------------------------ --------------- -------------------
15. Earnings per share
The calculation of the basic earnings per share is based on the
following data:
Six months to Six months to Year ended
June 30, June 30, December 31,
2023 2022* 2022
Earnings US$'000 US$'000 US$'000
---------------------------------------------------------------- ---- -------------- -------------- --------------
Loss attributable to the ordinary equity holders of the parent entity (6,436) (1,705) (29,251)
*Earnings have been restated in the comparative period as
described in note 2.
The effect of share options is anti-dilutive and therefore not
disclosed.
As at As at As at
June 30, June 30, December 31,
2023 2022 2022
Number of shares US$'000 US$'000 US$'000
-------------------------------------------------------------------- ---- ------------ ------------ --------------
Weighted average number of ordinary shares for the purposes of basic
earnings per share 140,507,712 131,781,726 133,426,953
Basic earnings per share is calculated by dividing the
profit/loss after tax attributable to the equity holders of the
Company by the weighted average number of shares in issue during
the year. The effect of share options is anti-dilutive and
therefore not disclosed.
16. Intangible assets
Brand names and
Internally customer Acquired Other intangible
Goodwill developed assets relations technologies assets Total
Cost US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
As at January 1,
2022 21,382 3,509 4,503 3,180 2,332 34,906
Additions arising
from internal
development - 2,165 - - - 2,165
Other
acquisitions - - - - 1,700 1,700
Disposals /
write-offs - (85) - - (812) (897)
Currency
translation
differences (795) 5 (160) (165) 14 (1,101)
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
As at December
31, 2022 20,587 5,594 4,343 3,015 3,234 36,773
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
Additions arising
from internal
development - 583 - - - 583
Business
combinations 394 - 123 - 682 1,199
Other
acquisitions - - - - 82 82
Disposals /
write-offs - (14) - - - (14)
Currency
translation
differences 294 162 61 57 73 647
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
As at June 30,
2023 21,275 6,325 4,527 3,072 4,071 39,270
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
Amortization and accumulated impairment losses
--------------------------------------------------------------------- ------------------ ----------------- --------
As at January 1,
2022 2,305 474 602 234 518 4,133
Amortization for
the period - 198 695 334 208 1,435
Impairment loss 10,576 880 73 - 122 11,651
Currency
translation
differences (750) 3 (72) (45) (24) (888)
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
As at December
31, 2022 12,131 1,555 1,298 523 824 16,331
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
Amortization for
the period - 331 360 167 211 1,069
Currency
translation
differences 158 48 (5) (3) - 198
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
As at June 30,
2023 12,289 1,934 1,653 687 1,035 17,598
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
Net book value
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
As at December
31, 2022 8,456 4,039 3,045 2,492 2,410 20,442
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
As at June 30,
2023 8,986 4,391 2,874 2,385 3,036 21,672
------------------ ----------- ----------------- ----------------- ------------------ ----------------- --------
17. Property, plant and equipment
Machinery and Computers and Furniture and Land and
equipment Motor vehicles software fixtures buildings Total
Cost US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at January 1,
2022 7,288 536 914 474 1,523 10,735
Additions 2,272 26 197 50 2,736 5,280
Disposals (69) (12) - - - (81)
Reclassifications (407) 59 - 348 - -
Currency
translation
differences (233) (1) (21) (23) (91) (369)
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at December 31,
2022 8,851 608 1,090 849 4,168 15,565
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
Additions 504 32 2 42 4 584
Disposals (807) (45) (3) - - (855)
Reclassifications (32) - - 32 - -
Currency
translation
differences 118 2 29 17 41 207
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at June 30,
2023 8,634 597 1,118 940 4,213 15,502
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
Depreciation and accumulated impairment losses
---------------------------------------------------- ----------------- ----------------- ----------------- -------
As at January 1,
2022 2,723 330 619 86 112 3,870
Charge for the
year 763 90 218 83 128 1,282
Eliminated on
disposal (27) (5) - - - (32)
Impairment loss 730 - - - - 730
Reclassifications (222) - - 222 - -
Currency
translation
differences (67) - (9) (3) (7) (86)
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at December 31,
2022 3,900 415 828 388 233 5,764
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
Charge for the
period 437 42 59 55 117 710
Eliminated on
disposal - (21) (1) - - (22)
Currency
translation
differences 68 1 24 7 7 106
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at June 30,
2023 4,405 437 910 450 356 6,558
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
Net book value
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at December 31,
2022 4,951 193 262 461 3,935 9,802
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
As at June 30,
2023 4,229 160 208 490 3,856 8,944
------------------ ---------------- -------------- ----------------- ----------------- ----------------- -------
18. Right-of-use assets
Land and buildings Motor vehicles Machinery and equipment Total
Cost US$'000 US$'000 US$'000 US$'000
As at January 1, 2022 8,913 611 341 9,865
Additions 86 174 1,921 2,181
Disposals due to expiry of lease - (36) - (36)
Disposals due to business combination* (467) - - (467)
Modification to lease terms** (1,199) - - (1,199)
Currency translation differences (381) (67) (26) (474)
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at December 31, 2022 6,952 682 2,236 9,870
---------------------------------------- ------------------- --------------- ------------------------ ---------
Additions 98 93 791 982
Disposals due to expiry of lease (220) - - (220)
Modification to lease terms** (253) (54) - (307)
Currency translation differences 160 18 30 208
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at June 30, 2023 6,737 739 3,057 10,533
---------------------------------------- ------------------- --------------- ------------------------ ---------
Depreciation
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at January 1, 2022 1,716 109 66 1,891
Depreciation for the year 730 140 68 938
Disposals due to expiry of lease - (36) - (36)
Modification to lease terms** (693) - - (693)
Currency translation differences (34) (6) (9) (49)
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at December 31, 2022 1,719 207 125 2,051
---------------------------------------- ------------------- --------------- ------------------------ ---------
Depreciation for the period 357 76 46 479
Disposals due to expiry of lease (118) - (32) (150)
Modification to lease terms** (173) (16) - (189)
Currency translation differences (21) 5 3 (13)
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at June 30, 2023 1,764 272 142 2,178
---------------------------------------- ------------------- --------------- ------------------------ ---------
Net book value
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at December 31, 2022 5,233 475 2,111 7,819
---------------------------------------- ------------------- --------------- ------------------------ ---------
As at June 30, 2023 4,973 467 2,915 8,355
---------------------------------------- ------------------- --------------- ------------------------ ---------
*With the acquisition of ChemTex Laboratories' property, plant
and equipment, the Group no longer has a lease liability with a
third party.
**The Group agreed to shorten the agreed lease terms of two
existing leases from 2032 to 2027. These modifications have
resulted in a reduction in the total amounts payable under the
leases and a reduction to both of the right-of-use assets and lease
liabilities with effect from the date of modification.
19. Other non-current assets
As at As at
June 30, 2023 December 31, 2022
Other non-current assets US$'000 US$'000
-------------------------- -------------- ------------------
Deposits 96 80
Other prepayments 86 57
--------------------------- -------------- ------------------
Other non-current assets 182 137
--------------------------- -------------- ------------------
20. Inventories
As at As at
June 30, 2023 December 31, 2022
Inventories US$'000 US$'000
--------------------------- -------------- ------------------
Functional ingredients 11,044 7,420
Functional materials 1,188 4,000
Functional consumer goods 2,174 1,748
---------------------------- -------------- ------------------
Total inventories 14,406 13,168
---------------------------- -------------- ------------------
The cost of inventories recognized as an expense in the six
months ended June 30, 2023 in respect of continuing operations was
US$ 12,110,000 (December 31, 2022: US$ 33,597,000 ).
21. Trade receivables
As at As at
June 30, 2023 December 31, 2022
Trade receivables US$'000 US$'000
-------------------------------------- -------------- ------------------
Not past due 5,027 2,788
< 30 days 1,256 520
31-60 days 402 781
61-90 days 667 215
91-120 days 94 180
>120 days 1,223 2,407
--------------------------------------- -------------- ------------------
Total trade receivables 8,669 6,891
--------------------------------------- -------------- ------------------
Provision for expected credit losses (413) (404)
--------------------------------------- -------------- ------------------
Total trade receivables (net) 8,256 6,487
--------------------------------------- -------------- ------------------
The average credit period on sales of goods varies by region
from 30 - 120 days. No interest is charged on outstanding trade
receivables. The Group always measures the loss allowance for trade
receivables at an amount equal to lifetime ECL. The expected credit
losses on trade receivables are estimated using a provision matrix
by reference to past default experience of the debtor and an
analysis of the debtor's current financial position, adjusted for
factors that are specific to the debtors, general economic
conditions of the industry in which the debtors operate and an
assessment of both the current as well as the forecast.
As at June 30, 2023, the Group has recognized an expected credit
loss of US$413,000 (2021: US$404,000).
22. Other receivables and prepayments
As at As at
June 30, 2023 December 31, 2022
Total other receivables and prepayments US$'000 US$'000
------------------------------------------ -------------- ------------------
Contract assets 108 115
Receivables from tax authorities 2,271 1,864
Prepayments 969 1,023
Other receivables 883 1,260
------------------------------------------ -------------- ------------------
Total other receivables and prepayments 4,231 4,262
------------------------------------------ -------------- ------------------
23. Contract assets
Amounts relating to contract assets are balances due from
customers under construction contracts that arise when the Group
receives payments from customers in line with a series of
performance-related milestones. The Group recognizes a contract
asset for any work performed. Any amount previously recognized as a
contract asset is reclassified to trade receivables at the point at
which it is invoiced to the customer.
As at As at
June 30, 2023 December 31, 2022
Contract assets US$'000 US$'000
---------------------------------- ------------------------ -------------------
Research and development services 108 65
Exclusivity services - 50
Total contract assets 108 115
---------------------------------- ------------------------ -------------------
Current assets 108 115
Non-current assets - -
Total contract assets 108 115
---------------------- --- ---
Revenues related to research and development services were
recognized at the point of delivering proof of concept and
completing testing services. Performance obligations related to
exclusivity services were deemed fulfilled by the Group upon
completion of the contractual term. Payment for the above services
is not due from the customer yet and therefore a contract asset is
recognized.
The directors of the Company always measure the loss allowance
on amounts due from customers at an amount equal to lifetime ECL,
taking into account the historical default experience, the nature
of the customer and where relevant, the sector in which they
operate. There has been no change in the estimation techniques or
significant assumptions made during the current reporting period in
assessing the loss allowance for the amounts due from customers
under construction contracts.
Lifetime Expected credit losses on contract assets
The following table details the risk profile of amounts due from
customers based on the Group's provision matrix. Based on the
historic default experience, the following expected credit loss has
been recognized:
As at As at
June 30, 2023 December 31, 2022
Expected credit loss US$'000 US$'000
------------------------------------------------- ------------------------ -------------------
Expected credit loss rate 0% 0%
Estimated total gross carrying amount at default 108 115
Lifetime ECL - -
------------------------------------------------- ------------------------ -------------------
Net carrying amount 108 115
------------------------------------------------- ------------------------ -------------------
24. Issued share capital and share premium
Movements in the Company's share capital and share premium
account were as follows:
Number of shares Share capital Share premium Totals
No. US$'000 US$'000 US$'000
--------------------------------------------- ---------------- ------------- ------------- -------
Balance as of January 1, 2022 130,583,536 51,523 144,191 195,714
Issue of shares to vendors of Life Materials 347,552 141 471 612
Issue of shares as deferred consideration 3,461,615 1,359 2,921 4,280
Issue of shares to Advisory Board and others 164,721 60 175 235
Issue of shares to vendors of ChemTex Labs 2,176,884 795 1,177 1,972
Issue of shares to vendors of Chrisal 3,348,164 1,223 1,838 3,061
---------------------------------------------- ---------------- ------------- ------------- -------
Balance as at December 31, 2022 140,082,472 55,101 150,773 205,874
---------------------------------------------- ---------------- ------------- ------------- -------
Issue of shares Tarn Pure (a) 455,435 160 212 372
Balance as at June 30, 2023 140,537,907 55,261 150,985 206,246
---------------------------------------------- ---------------- ------------- ------------- -------
The par value of all shares is GBP0.30. All shares in issue were
allotted, called up and fully paid.
The share premium account represents the amount received on the
issue of ordinary shares by the Company in excess of their nominal
value and is non-distributable.
The Company issued new ordinary shares for the following:
On January 12, 2023, HeiQ plc completed the acquisition of 100%
of the issued share capital and voting rights of Tarn Pure for a
total consideration of US$993,000. The purchase consideration was
payable partly in cash (US$621,000) and partly by the issue of
455,435 new ordinary shares for (US$372,000). See Note 4 for
details.
25. Share-based payments
Equity-settled Share Option Scheme
Following employee departures, the number of options expected to
vest dropped to 2,279,236 as per June 30, 2023 (December 31, 2022:
2,497,281). The expense arising from these share-based payment
transactions was US$132,000 for the six months ended June 30, 2023
which compares against an income of US$12,000 for the year ended
December 31, 2022 following a drop in market expectations during
the second half of 2022. In the six months ended June 30, 2022, the
Group incurred an expense of US$415,000.
Other share-based payments
Remuneration of US$764,000 in relation to the acquisition of
Life Materials Technologies Limited is linked to a service period
of five years. An expense of US$75,000 was recognized in the six
months ended June 30, 2023 (six months ended June 30, 2023:
US$71,000; year ended December 31, 2022: US$150,000). The remainder
of approximately US$469,000 is expected to be expensed over the
period from July 1, 2023, to June 30, 2026.
26. Other reserves
Other reserves comprise the share-based payment reserve, the
merger reserve, the currency translation reserve and the other
reserve.
The retained deficit comprises all other net gains and losses
and transactions with owners not recognized elsewhere.
Movements in the other reserves were as follows:
Share-
based Currency
payment translation Other Total Other
reserve Merger reserve reserve reserve reserves
Note US$'000 US$'000 US$'000 US$'000 US$'000
--------------- ------------------ ------------ ---------------- ----------------- ------------- ---------------
Balance at January 1, 2022 474 (126,912) 387 (1,144) (127,195)
Other comprehensive
(loss)/income - - (1,914) 1,104 (810)
Total comprehensive
(loss)/income for the year - - (1,914) 1,104 (810)
------------------------------ --- ------------ ---------------- ----------------- ------------- ---------------
Share-based payment charges 25 (12) - - - (12)
Transactions with owners (12) - - - (12)
Balance at December 31, 2022 462 (126,912) (1,527) (40) (128,017)
------------------------------ --- ------------ ---------------- ----------------- ------------- ---------------
Other comprehensive
(loss)/income - - 429 - 429
Total comprehensive
(loss)/income for the period - - 429 - 429
------------------------------ --- ------------ ---------------- ----------------- ------------- ---------------
Share-based payment charges 132 - - - 132
Transactions with owners 132 - - - 132
Balance at June 30, 2023 594 (126,912) (1,098) (40) (127,456)
------------------------------ --- ------------ ---------------- ----------------- ------------- ---------------
The share-based payment reserve arises from the requirement to
fair value the issue of share options at grant date. Further
details of share options are included at Note 25.
The currency translation reserve represents cumulative foreign
exchange differences arising from the translation of the financial
statements of foreign subsidiaries and is not distributable by way
of dividends.
Dividend paid by subsidiary
In June 2022, HeiQ Chrisal N.V. declared and paid a dividend of
EUR470,000 (approximately US$496,000) of which 49% or US$243,000
was paid to minority shareholders.
Capital contributions from minority shareholders
The Group received in 2022 a capital contribution from a
minority shareholder of US$764,000 which arose from a waived
loan.
27. Borrowings
The Group's borrowings are held at amortized cost. They consist
of the following:
As at As at
June 30, 2022 December 31, 2022
Borrowings US$'000 US$'000
Unsecured bank loans 8,533 3,573
Secured bank loans 213 628
Loans from non-controlling interest 591 137
Total borrowings 9,337 4,338
------------------------------------ -------------- ------------------
The other principal features of the Group's borrowings are as
follows:
Unsecured bank loans
A credit facility amounting to CHF 2,400,000 (US$2,574,000) was
taken out in December 2022 which incurs interest at a fixed rate of
2.2%. It was repaid on February 28, 2023 and the loan was replaced
with a new credit facility worth CHF 4,500,000 (US$ 4,964,000).
Several loans amounting to US$1.6 million were assumed through
the acquisition of Chrisal. They finance the acquisition of
property, plant and equipment as well as the prepayment of
provisional taxes. A further EUR277,000 was taken out in February
2023 which is repayable over ten years. As at June 30, 2023, a
total of EUR1,271,000 (US$1,387,000) is outstanding (December 2022:
EUR938,000 (US$999,000)). The loans are repayable over a period of
up to ten 10 years. These loans all have fixed interest rates
between 0.78 and 3.95% and the weighted average fixed interest rate
on the outstanding balances is 2.85%.
Loans from non-controlling interests
A loan is payable to a minority shareholder of Life-Materials
Latam Ltda, Brazil. Interest is fixed at 0.5%. There is no specific
repayment date, but the loan is payable once the entity is able to
repay it. The balance was BRL 1,020,000 (approximately US$210,000)
as at June 30, 2023 (December 31, 2022 is BRL 715,683
(US$137,000).
Secured bank loans
A bank loan taken out in October 2020 which incurs interest at a
fixed rate of 3.25% and which is secured on property owned by a
company which is controlled by a minority shareholder of HeiQ
Medica. It is repayable in equal monthly instalments of EUR8,000
(US$9,500) over eight years up to September 2028. As at June 30,
2023, EUR542,500 (US$592.000) is outstanding (December 31, 2022:
US$629,000).
The following table provides a reconciliation of the Group's
future maturities of its total borrowings for each year
presented:
As at As at
June 30, 2023 December 31, 2022
Maturity of borrowings US$'000 US$'000
--------------------------------------------- ------------------------ ------------------------
Not later than one year 7,471 2,893
Later than one year but less than five years 721 1,029
After more than five years 1,145 416
--------------------------------------------- ------------------------ ------------------------
Total borrowings 9,337 4,338
--------------------------------------------- ------------------------ ------------------------
28. Deferred tax
The following are the major deferred tax liabilities and assets
recognized by the Group and movements thereon during the current
and prior reporting period.
Capital allowances,
depreciation and other
Pension fund obligations Tax losses Share-based payments temporary differences Total
Deferred tax US$'000 US$'000 US$'000 US$'000 US$'000
------------------------ ------------------------ ---------- -------------------- ----------------------- -------
Balance at January 1,
2022 429 178 85 (1,686) (994)
Charge to profit or loss 49 (150) 1 681 581
Charge to other
comprehensive income (276) - - - (276)
Foreign currency
differences (12) (28) 5 9 (26)
------------------------ ------------------------ ---------- -------------------- ----------------------- -------
Balance as at December
31, 2022 190 - 91 (996) (715)
------------------------ ------------------------ ---------- -------------------- ----------------------- -------
Charge to profit or loss 9 - 25 117 151
Business combinations - - - (201) (201)
Foreign currency
differences 6 - 1 - 7
------------------------ ------------------------ ---------- -------------------- ----------------------- -------
Balance as at June 30,
2023 205 - 117 (1,080) (758)
------------------------ ------------------------ ---------- -------------------- ----------------------- -------
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against
current tax liabilities and when they relate to income taxes levied
by the same taxation authority and the Group intends to settle its
current tax assets and liabilities on a net basis. The following is
the analysis of the deferred tax balances (after offset) for
financial reporting purposes:
As at As at
June 30, 2023 December 31, 2022
Deferred tax US$'000 US$'000
--------------------------------------- --------------- -------------------
Deferred tax assets 579 538
Deferred tax liabilities (1,337) (1,253)
---------------------------------------- --------------- -------------------
Net deferred tax assets (liabilities) (758) (715)
---------------------------------------- --------------- -------------------
Deferred tax liabilities related to capital allowances and
depreciation decreased following the amortization of intangible
assets acquired in the business combinations in 2021.
29. Other non-current liabilities
As at As at
June 30, 2023 December 31, 2022
Other non-current liabilities US$'000 US$'000
Defined benefit obligation IAS 19 Switzerland 1,023 952
Defined benefit obligation IAS 19 Thailand 130 134
Contract liabilities 4,233 3,614
Deferred grant income 386 14
Total other non-current liabilities 5,772 4,714
---------------------------------------------- -------------- ------------------
30. Trade and other payables
As at As at
June 30, 2023 December 31, 2022
Trade and other payables US$'000 US$'000
------------------------------- ------------------------ -------------------
Trade payables 6,086 3,321
Payables to tax authorities 326 375
Other payables 2,241 1,626
------------------------------- ------------------------ -------------------
Total trade and other payables 8,653 5,322
------------------------------- ------------------------ -------------------
Trade payables principally comprise amounts outstanding for
trade purchases and ongoing costs. Other payables relate to
employee-related expenses, utilities and other overhead costs.
Typically, no interest is charged on the trade payables. The Group
has financial risk management policies in place to ensure that all
payables are paid within the pre-agreed credit terms.
The directors consider that the carrying amount of trade
payables approximates to their fair value.
31. Accrued liabilities
As at As at
June 30, 2023 December 31, 2022
Accrued liabilities US$'000 US$'000
-------------------------- ------------------------ ------------------
Costs of goods sold 909 875
Personnel expenses 1,415 1,737
Other operating expenses 1,368 2,366
-------------------------- ------------------------ ------------------
Total accrued liabilities 3,692 4,978
-------------------------- ------------------------ ------------------
32. Deferred revenue
As at As at
June 30, 2023 December 31, 2022
Deferred revenue US$'000 US$'000
-------------------------------- ------------------------ ------------------
Contract liabilities 1,230 1,176
Prepayments for unshipped goods 80 94
Deferred grant income 55 15
-------------------------------- ------------------------ ------------------
Total deferred revenue 1,365 1,285
-------------------------------- ------------------------ ------------------
33. Contract liabilities
As at As at
June 30, 2023 December 31, 2022
Contract liabilities US$'000 US$'000
---------------------------------- -------------- ------------------
Exclusivity agreements 1,585 1,832
Research and development services 3,878 2,958
Total contract liabilities 5,463 4,790
---------------------------------- -------------- ------------------
Current liabilities (Note 32) 1,230 1,176
Non-current liabilities (Note 29) 4,233 3,614
Total contract liabilities 5,463 4,790
---------------------------------- ----- -----
Revenue relating to both exclusivity and research and
development services is recognized over time although the customer
pays up-front in full for these services. A contract liability is
recognized for revenue relating to the services at the time of the
initial sales transaction and is released over the service
period.
34. Other current liabilities
As at As at
June 30, 2023 December 31, 2022
Current liabilities US$'000 US$'000
--------------------------------------------------- ------------------------ ------------------
Deferred consideration in relation to acquisitions 92 92
Call option liability 453 686
--------------------------------------------------- ------------------------ ------------------
Other current liabilities 545 778
--------------------------------------------------- ------------------------ ------------------
35. Contingent assets and liabilities
On October 10, 2022 the Group announced that it has filed a
complaint in the United States District Court for the Western
District Of North Carolina, Charlotte Division, against ICP
Industrial Inc, for breaching its Exclusive Agreement terms.
Because of the claimed contract breach, the Group has not
recognized any income or assets from the contract. Within the same
legal proceeding, ICP Industrial Inc, has filed a counter claim
against the Group. Although the Group is confident in its legal
position, the outcome of the legal proceedings as well as the
court-mandated mediation remains uncertain. Therefore, while a
future economic benefit is expected, it can not be reliably
quantified at this point in time and could bear the risk of
prejudice given the ongoing legal proceedings.
36. Provisions
As at As at
June 30, 2023 December 31, 2022
Provisions US$'000 US$'000
Current liabilities - 339
Non-current liabilities - -
Total provisions - 339
----------------------------------------- ------------------------ ------------------
Legal/Compliance provision Total
Current liabilities US$'000 US$'000
----------------------------------------- ---------------------------- ------------------
Balance at January 1, 2022 - -
Additional provision in the year 339 339
Utilization of provision - -
Exchange difference - -
----------------------------------------- ---------------------------- ------------------
Balance as at December 31, 2022 339 339
----------------------------------------- ---------------------------- ------------------
Additional provision in the period - -
Utilization of provision (339) (339)
Exchange difference - -
----------------------------------------- ---------------------------- ------------------
Balance as at June 30, 2023 - -
----------------------------------------- ---------------------------- ------------------
The Group was contacted by the United States Environmental
Protection Agency ("EPA") in connection with violations of the
Federal Insecticide, Fungicide and Rodenticide Act ("FIFRA")
pertaining to mislabelling. As at December 31, 2022, the Company
has assessed the claim and made a provision for US$339,000 which
was paid in May 2023.
This provision is reported in Note 31 as Accrued liabilities -
Other operating expenses.
37. Notes to the statements of cash flows
Non-cash transactions
Certain shares were issued during the year for a non-cash
consideration as described in Note 24.
During the year ended December 31, 2022, additions to buildings
and land amounting to US$1,862,000 million were financed by issuing
shares.
Working capital reconciliation:
The Company defines working capital as trade receivables, other
receivables and prepayments less trade and other payables, accrued
liabilities and deferred revenue.
Assumed on acquisition of
Opening balances subsidiaries Change in balance Closing balances
-----------------------------
Six months ended June 30, 2023 US$'000 US$'000 US$'000 US$'000
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Inventories 13,168 13 1,225 14,406
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Trade receivables 6,487 11 1,758 8,256
Other receivables and
prepayments 4,262 12 (43) 4,231
Trade and other receivables
and prepayments 10,749 23 1,715 12,487
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Trade and other payables 5,322 - 3,331 8,653
Accrued liabilities 4,978 - (1,286) 3,692
Deferred revenue incl.
non-current contract
liabilities 4,913 - 1,072 5,985
Trade and other payables,
accrued liabilities and
deferred revenue 15,213 - 3,117 18,330
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Assumed on acquisition of
Opening balances subsidiaries Change in balance Closing balances
-----------------------------
Six months ended June 30, 2022 US$'000 US$'000 US$'000 US$'000
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Inventories 13,770 - 2,414 16,184
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Trade receivables 14,656 - 3,462 18,118
Other receivables and
prepayments 3,876 - (1,854) 2,022
Trade and other receivables
and prepayments 18,532 - 1,608 20,140
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Trade and other payables 8,271 - (1,312) 6,959
Accrued liabilities 3,386 - (1,208) 2,178
Deferred revenue incl.
non-current contract
liabilities 1004 - 4,968 5,972
Trade and other payables,
accrued liabilities and
deferred revenue 12,661 - 2,448 15,109
------------------------------ ---------------- ----------------------------- ----------------- ----------------
Assumed on acquisition of
Opening balances assets Change in balance Closing balances
-----------------------------
Year ended December 31, 2022 US$'000 US$'000 US$'000 US$'000
------------------------------ ---------------- ---------------------------- ------------------ ----------------
Inventories 13,770 - (602) 13,168
------------------------------ ---------------- ---------------------------- ------------------ ----------------
Trade receivables 14,656 - (8,169) 6,487
Other receivables and
prepayments 3,876 - 386 4,262
Trade and other receivables
and prepayments 18,532 - (7,783) 10,749
------------------------------ ---------------- ---------------------------- ------------------ ----------------
Trade and other payables 8,271 - (2,949) 5,322
Accrued liabilities 3,386 9 1,583 4,978
Deferred revenue incl.
non-current contract
liabilities 1,004 - 3,909 4,913
Trade and other payables,
accrued liabilities and
deferred revenue 12,661 9 2,543 15,213
------------------------------ ---------------- ---------------------------- ------------------ ----------------
Consideration for acquisition of businesses (Note 4)
Six months ended June 30, 2023 US$'000
Consideration payment for acquisition of Tarn Pure 621
Cash assumed on acquisition of Tarn Pure (2)
Net consideration payment for acquisitions of businesses and assets 619
Year ended December 31, 2022 US$'000
Consideration payment for acquisition of Life Materials Technologies Ltd 1,400
Consideration payment for acquisition of ChemTex assets 187
Net consideration payment for acquisitions of businesses and assets 1,587
38. Related party transactions
The Group have not identified any significant transactions with
related parties. There are no loans outstanding with related
parties.
39. Material subsequent events
As communicated on July 06, 2023, HeiQ Plc sold a 1.5% minority
interest in HeiQ AeoniQ GmbH to MAS Holdings for US$1.5 million. It
was also agreed that a further 1% shareholding will be sold to MAS
Holdings for US$1 million subject to the achievement of a mutually
agreed milestone.
40. Ultimate controlling party
As at June 30, 2023, the Company did not have any single
identifiable controlling party.
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END
IR FFFLLILLAFIV
(END) Dow Jones Newswires
October 30, 2023 03:01 ET (07:01 GMT)
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