HeiQ PLC on Thursday said it is reviewing strategic options for individual units including mergers and sales, as it noted that pressure on consumer spending that impacted its revenue lines.

HeiQ shares dived 45% to 5.00 pence each on Thursday afternoon in London.

The materials and textiles company with its operational headquarters in Zurich, Switzerland, cautioned that market conditions have been ‘challenging’.

‘Pressure on consumer discretionary spending impacted our textiles, flooring, antimicrobials and other established revenue lines,’ it said.

HeiQ noted: ‘As previously announced, the company has been focusing on improving operational efficiencies and adapting its cost base. Sales volumes were stable throughout the period. However, sales prices remained lower than usual whilst the cost of raw materials, energy and logistics remained high.’

For the 18 months to June 30, revenue of $62 million is expected, compared to the $47.2 million achieved in calendar year 2022.

The firm had extended its financial year to June 30 of this year to ‘enable the new auditor to complete the audit’.

For the first half of 2024, revenue totalled $20.4 million, a slight decline on-year from $20.5 million a year ago.

HeiQ added: ‘The company has been focusing on improving operational efficiencies and adapting its cost base. Sales volumes were stable throughout the period. However, sales prices remained lower than usual whilst the cost of raw materials, energy and logistics remained high.’

HeiQ said it is reviewing strategic options for individual units, including mergers, sales or carve-outs, to improve the balance sheet and financial position of the company.

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