REG - Strix Group PLC - Trading Update

StrixAnnouncement

Wed 07:02

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RNS Number : 0854T  Strix Group PLC  30 July 2025

30 July 2025

Strix Group Plc

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

Trading Update

 

Strix Group Plc (AIM:KETL), the 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,
is pleased to provide an update on trading for the six-month period ended 30
June 2025. Following a strong Q125 performance, Billi and the Consumer Goods
division have seen a good trading performance during the period and achieved
growth in line with expectations, while the Controls division came under
pressure in Q225 from geopolitical and macroeconomic uncertainties.

 

As flagged in the Group's FY24 outlook statement, macro-uncertainties,
particularly surrounding indirect tariff impacts and a weaker US$, have led to
reduced Q225 sales volumes and contributed to order delays in the Group's
Controls division. The Group has maintained its market-leading position and,
as a result, now expects trading volumes to return to a more typical H2
weighting, consistent with historical trends.

 

Despite these macro challenges, the Controls division has made meaningful
progress in other areas. The new Next Generation control production line in
Strix's Chinese facility has been successfully completed, and the launch to
market has been well received, with Next Gen controls now confirmed in new
products at several of the Group's partner OEMs. As demonstrated by the launch
of the Low Cost and Next Generation controls, new product development within
the Controls division is focused on delivering solutions that can expand into
additional market segments, defend against copyist manufacturers and increase
Strix's overall addressable market.

 

As stated in the Group's FY24 results, Strix's direct sales into the US are
limited to c. £7.0m within the Controls division, with no material sales from
Consumer Goods and none from Billi.

 

Billi continues to perform strongly, maintaining its double-digit growth rates
as it gains further traction with customers across its key target markets.
This includes strong sales growth in Europe and Southeast Asia, reflecting the
success of its ongoing geographical roll-out strategy. In its largest market,
Australia, newly launched products in H224 and H125 have been well received
and continue to gain momentum.

 

The Consumer Goods division has performed well, returning to solid growth in
the period, following a successful restructure in 2024. Product manufacture in
China for its leading global baby brand customer continues to be rolled out
and additional products have been launched in the period as expected.

 

The net debt position continues to be a key priority for the management team.
However, in line with seasonality and due to the Q225 macro-driven volume
reductions in the Controls division, net debt has increased during the period.
Strix has continued to manage cash generation and conservation to mitigate the
impact of this and will work to return the net debt position to within the
Group's stated appetite of 1.0-2.0x as soon as possible (FY24: 1.87x).

 

The Group confirms that a competitive refinancing process has been formally
initiated to provide cost effective and flexible funding to support the
Group's medium-term investment-driven growth aspirations. These aspirations
will be further supported by the completion of the repayment of the term loan
used to finance the Billi acquisition in 2022. Strix has been paying
approximately £14.0m on an annualised basis in cash to satisfy this term loan
and the final repayment is due in November 2025.

 

Despite macroeconomic challenges, Strix has continued to drive its medium-term
growth strategy, implementing measures to mitigate and minimise the largely
uncontrollable impacts of global market volatility. The Group remains focused
on managing its cost base and debt position, while balancing investment
decisions through the economic cycle, further supported by the completion of
paying down the Billi debt and the refinancing exercise. Strix remains well
placed to capitalise on a recovery in end markets.

 

Notice of Results

 

The Group expects to report its Interim Results for the six-month period ended
30 June 2025 on 30 September 2025. Management will be hosting a briefing for
equity analysts on the day of results, for further details, please email:
strix@gracechurchpr.com (mailto:strix@gracechurchpr.com) .

 

 

For further enquiries, please contact:

 

 Strix Group Plc                                      +44 (0) 1624 829829
 Mark Bartlett, CEO
 Clare Foster, CFO

 Zeus (Nominated Advisor and Joint Broker)            +44 (0) 20 3829 5000
 Nick Cowles / Jordan Warburton (Investment Banking)

 Dominic King (Corporate Broking)

 Stifel Nicolaus Europe Limited (Joint Broker)        +44 (0) 20 7710 7600
 Matthew Blawat / Francis North

 Gracechurch Group (Financial PR and IR)              +44 (0) 20 4582 3500
 Heather Armstrong / Claire Norbury

 

Information on Strix

Founded in 1982, 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, expanding into
complementary products and technologies. The Group's brands include Aqua
Optima, LAICA and Billi providing our customers with market leading water
solutions on a global basis.

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

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