REG - Strix Group PLC - Pre-Close Trading Update and Notice of Results

StrixAnnouncement

26/01/2023 07:01

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RNS Number : 8788N  Strix Group PLC  26 January 2023

Strix Group Plc

 

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

 

Pre-Close Trading Update and Notice of Results

 

Strix Group Plc (AIM: KETL) is pleased to announce a pre-close trading update
for the year ended 31 December 2022.

 

Despite the challenging macroeconomic and geopolitical environment, Strix has
achieved adjusted profit after tax for the full year of approximately £23m,
which is in line with previous guidance given at the trading update on 30
November 2022.

 

Whilst the uncertainty across a number of Strix's key export markets in Q4
remains, the disruptive effects of ongoing lockdowns being enforced in China
are now beginning to show signs of abating following the recent changes in
government policies and it is now anticipated that the Chinese economy will
see an improvement in Q2 2023.

 

Strix is continuing to implement a range of strategic initiatives in order to
minimise the impact of the headwinds it is facing. These include a new
internal restructuring programme and a focus on the reduction of inventory in
order to maximise cash generation for the Group.

 

Following the completion of the acquisition of Billi on 30 November 2022, the
integration remains on track and the Company is confident in the financial
performance of the business and delivering synergies in line with
expectations. Billi has a strong pipeline of orders, distributors appointed in
Asia that are already starting to deliver results and further new product
launches planned for Q2. Billi has a successful history of growth, with double
digit CAGR over the past five years and is highly cash generative.

 

Strix is focused and committed to returning to its core operating model of
being highly cash generative with no further M&A activity or investment
into new factory builds, significantly reduced capex and working capital over
the medium term.

 

The Group's net debt((1)) was £87m as at 31 December 2022. Capital allocation
decisions will prioritise debt reduction with a clear plan to get net debt /
EBITDA to below 2.0x during 2023 and the Board is currently reviewing the
level of the final dividend and further details will be provided at the
Preliminary Results.

 

During the period, the Group also delivered against its scope 1 & 2 net
zero targets ahead of its original target.

 

Notice of Results

 

The Group will announce its Preliminary Results for the twelve month period
ended 31 December 2022 on 29 March 2023.

 

((1) ) Net debt excludes the impact of IFRS 16 lease liabilities, pension
liabilities, deferred tax liabilities and earn-out provisions on satisfaction
of performance conditions.

 

 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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