Cool textiles firm felt a chill – but is in prime place for a comeback

HEIQ

FRUSTRATINGLY, this Midas tip for 2021 has halved in value to 84p since the beginning of the year. The company develops products that make textiles cooler, warmer, stronger or more efficient and customers include household names such as Burberry, Uniqlo and North Face. The firm even signed a partnership with Lycra last summer to develop an eco-friendly, biodegradable alternative to polyester.

Yet HeiQ has been hit hard by the global shortage of raw materials and soaring shipping rates. Chief executive Carlo Centonze has had to delay orders so sales and profits fell at the half year and the shares have fallen steadily since.

MIDAS VERDICT: Investors have been bitterly disappointed by HeiQ’s performance, including Centonze, who owns around 10 per cent of the shares. At 84p however, the price should recover. Many of the issues that plagued HEIQ this year have been resolved and customers remain enthusiastic. Investors should not sell out now.

Traded on: Main market Ticker: HEIQ

Contact: heiq.com or 00 41 56 250 6850

SOURCEBIO

WHEN Midas recommended testing and diagnostics business SourceBio last January, the shares were £1.70. As one of the first private companies to receive government accreditation for its PCR tests, SourceBio rode high early last year but then slumped to £1.25 as Covid19 cases fell. The shares are still lower than they were at the start of the year but, at £1.60, they are really starting to fight back.

SourceBio was recently named best provider of day two PCR tests for travellers by Which? magazine and, from 2000 tests a day a few weeks ago, the group is now processing more than 7,000 daily – with numbers rising fast.

But SourceBio is much more than a Covid-testing company. The group works with a network of professional pathologists, helping overstretched hospitals to assess conditions, such as skin or intestinal cancer. Its laboratories are at the forefront of DNA sequencing that

makes personalised medicine possible. And there are specialised facilities too, for the safe storage of drugs. The group has around £20million in the bank and intends to use to develop the business organically and through acquisition.

MIDAS VERDICT: SourceBio shares have underperformed but they should recover.

The firm may be best known for PCR tests but its credentials spread much further. At £1.60, existing investors should hold. New investors may even choose to jump in at this point.

Traded on: AIM Ticker: SBI Contact: sourcebiointernational.com or 0115 973 9012