HeiQ, a materials company, has announced a widened pretax loss for the first half of the year, citing challenging trading conditions and weaker demand across all segments.
For the six months ended June 30, the company reported a pretax loss of $6.4 million, compared to a loss of $1.65 million during the same period last year. Adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) was $3.6 million, down from a profit of $721,000.
Revenue for the period was $20.5 million, reflecting a 26% decrease from $27.56 million in the previous year.
Challenges and Response
Chairwoman Esther Dale-Kolb addressed the challenging market conditions for the company's commercialized product range and highlighted the steps taken to reduce costs and reorganize the business. These actions were undertaken during the first half of 2023.
Outlook and Resources
The board is confident that the company has sufficient resources to replace the currently uncommitted credit facilities with committed, long-term facilities.
HeiQ also reported that its revenue for 2022 amounted to $47.2 million, compared to $55.4 million in the previous year. This decline was primarily attributed to the impact of the coronavirus lockdown in China, one of the company's major markets, as well as a decrease in the textiles and flooring segments by 15%.
The pretax loss for the year was $29.8 million, compared to a loss of $1.4 million in the previous year.