REG - Strix Group PLC - Completion of Acquisition and Trading Update

StrixAnnouncement

30/11/2022 07:00

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RNS Number : 0034I  Strix Group PLC  30 November 2022

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is
disclosed in accordance with the Company's obligations under Article 17 of
MAR.

 

Strix Group Plc

 

("Strix", the "Group" or the "Company")

 

Completion of Acquisition and Trading Update

 

 

Completion of Billi acquisition

 

Strix Group Plc (AIM:KETL), the AIM quoted global leader in the design,
manufacture and supply of kettle safety controls and other complementary water
temperature management components, is pleased to announce, further to its
announcement on 5 October 2022, that it has today completed the acquisition
of Billi Australia Pty Ltd, Billi New Zealand Ltd and Billi UK Ltd (together
"Billi").

 

Billi is a leading brand supplying premium filtered and non-filtered instant
boiling, chilled and sparkling water systems with manufacturing based in
Australia. Billi has a successful history of growth with a double-digit
revenue CAGR over the past five years and strong cash conversion. The
acquisition materially accelerates Strix's growth plans for its Water &
Appliance categories and provides an entry into the high growth and
strategically important hot tap market.

 

Trading update

 

In recent weeks it has become increasingly evident that the disruptive effect
of ongoing lockdowns being enforced in China, whilst relatively short in
length, have adversely impacted two of the top five of Strix's major OEM
customers, with further disruption anticipated. As a precaution, Strix has
reinstated its secondary warehouse to minimise any disruption with its own
shipments.

 

As a result of lockdown situations as described above and continued
macroeconomic and geopolitical uncertainty, not only in China but across a
number of its key export markets it now anticipates adjusted profit after tax
for the full year to be approximately £23m. The Board recognises that these
uncertainties could continue into 2023.

 

December remains a significant period for the Group due to the active trading
ahead of the Chinese New Year public holiday when a number of its major
customers and suppliers cease operations for a period. Strix will announce a
further update on trading on 26 January 2023 which is consistent with its
typical reporting timetable.

 

Strix continues to maintain its strong market share position in Kettle
Controls and is outperforming the market in the Appliance and Water
categories. In addition, Strix has a strong balance sheet and it has
significant financial flexibility for the medium term to navigate headwinds
and deploy capital consistent with allocation of capital priorities.

 

 

 For further enquiries, please contact:

 Strix Group Plc                                                    +44 (0) 1624 829829

 Mark Bartlett, CEO

 Raudres Wong, CFO

 Zeus (Nominated Advisor and Joint Broker)                          +44 (0) 20 3829 5000

 Nick Cowles / Jamie Peel / Jordan Warburton (Investment Banking)

 Stifel Nicolaus Europe Limited (Joint Broker)                      +44 (0) 20 7710 7600

 Matthew Blawat / Francis North

 IFC Advisory Limited (Financial PR and IR)                         +44 (0) 20 3934 6630
 Graham Herring / Tim Metcalfe / Florence Chandler

 

ABOUT STRIX GROUP PLC

 

Isle of Man based Strix, is a global leader in the design, manufacture and
supply of kettle safety controls and other components and devices involving
water heating and temperature control, steam management and water filtration.

 

Strix's core product range comprises a variety of safety controls for small
domestic appliances, primarily kettles. Kettle safety controls require
precision engineering and intricate knowledge of material properties in order
to repeatedly function correctly. Strix has built up market leading capability
and know-how in this field since being founded in 1982.

 

Strix trades on the AIM Market of the London Stock Exchange (AIM: KETL).

 

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