RNS Number : 3014B
Strix Group PLC
30 September 2025
30 September 2025
Strix Group Plc
("Strix", the "Group" or the "Company")
Interim results for the six months ended 30 June 2025
Financial Summary
Results from continuing operations1
CER3
CER3
AER3
AER3
HY24
HY25
Change
HY25
Change
Adjusted measures
£m
%/bps
£m
%/bps
£m
Revenue
61.9
(6.4)%
60.5
(8.5)%
66.1
Gross profit
22.5
(14.8)%
22.0
(16.7)%
26.4
Gross profit %
36.3%
(360)bps
36.3%
(360)bps
39.9%
EBITDA
13.9
(16.8)%
13.7
(18.0)%
16.7
EBITDA %
22.5%
(280)bps
22.6%
(270)bps
25.3%
Operating profit
9.8
(23.4)%
9.7
(24.2)%
12.8
Profit before tax
6.2
(20.5)%
6.1
(21.8)%
7.8
Net debt2
68.8
-
68.8
Net debt leverage
2.21x
25.5%
1.76x
Operating cash conversion
51.8%
(6,350)bps
115.4%
Diluted earnings per share (pence)
2.9
-
1.7p
(41.4)%
2.9
GAAP Measures
Revenue
60.5
(5.3)%
63.9
Operating profit
6.7
509.1%
1.1
Profit/(loss) before tax
3.1
181.6%
(3.8)
Diluted earnings/(loss) per share
0.5p
121.7%
(2.3)p
1. Adjusted results from continuing operations exclude adjusting items (see note 10) and results from discontinued operations.
2. Net debt is as defined by our bank facility agreement and excludes the impact of IFRS 16 lease liabilities and accrued interest.
3. "CER" being Constant Exchange Rate, is calculated by translating the HY25 figures by the average HY24 exchange rate, and "AER" being Actual Exchange Rate.
Financial Highlights
·
Adjusted revenue decreased by (6.4)% to £61.9m at CER (AER: (8.5)%) to £60.5m; HY24: £66.1m)
o Billi - continued to deliver strong revenue growth, up 10.4% at CER
o Consumer Goods - returned to solid 7.0% growth at CER, following the restructuring in FY24
o Controls - geopolitical and macro uncertainties due to indirect tariffs impacts, significantly decreased revenues by (24.2)% at CER
·
Adjusted gross margins at 36.3% are down (360) bps at CER (AER: 36.3%, (360) bps) mainly due to lower Controls sales and the roll out of appliance manufacture for a leading Consumer Goods customer
·
Reflecting the challenging trading conditions in Controls, adjusted PBT was down (20.5)% at CER to £6.2m (AER: (21.8)% to £6.1m; HY24: £7.8m)
·
Operating cash conversion rates of 51.8% are temporarily below target (75-85%), as demand volatility has increased Controls inventory levels
·
Prudent cost management has reduced opex and capex spend by c.£2.0m, despite ongoing investments in priority areas
·
Net debt increased to £68.8m (FY24: £63.7m), retaining RCF facility headroom of £4.1m at the end of HY25 (FY24: £10.5m)
o Net debt leverage ratio at 2.21x (FY24: 1.87x) which remains comfortably within covenants of 2.75x (FY24: 2.75x)
·
Refinance process currently on hold, given macro trading volatility: o Proactive and supportive dialogue with the existing lending group, to amend current facilities to ensure they appropriately support the business (maturity date October 2026) o An accelerated debt reduction programme is underdevelopment to enhance future refinance options
Operational Highlights
· Billi demonstrated strong underlying performance and geographical rollout strategy progressing well in key markets
· Billi successfully moved its HQsite, expanding production capacity to support future growth
· Consumer Goodssaw strong appliance manufacturing growth and new product introductions with key OEM customer in the baby formula sector
· Macro challenges in Controls in H125 impacting revenue, but solid operational progress, including successful implementation of new Next Generation control production line in Chinese facility
Outlook & Post Period End
·
Continue to navigate and mitigate where possible the impacts of the volatile macroeconomic and geopolitical trading environment
·
Drive ongoing growth in Billi through continued geographic expansion and new product launches
·
Higher anticipated H225 seasonality, due to tariff-led disruption in H125 and a presumed part recovery of Controls in Q425
·
Attending Canton Fair in October 2025 to gather market intelligence and sentiment within the OEM community
·
Trading and accelerated debt reduction plan update scheduled for November 2025
·
Change of the Group Year Endto 31 March 2026 to align better with industry cycles, important industry events such as the Canton Fair and the key holiday season sales in Q4
·
Despite the macro challenges, the Board remains confident in the Group's medium-term outlook and expects trading for the 15 months to 31 March 2026 to be in line with management expectations
Mark Bartlett, Chief Executive Officer of Strix Group Plc, commented: "We are pleased to have progressed strategic initiatives across the business in HY25 despite volatile macro headwinds in the global SDA market. We have seen good progress in terms of new product development and geographical expansion across the divisions. It was especially pleasing to see Billi delivering such a strong performance throughout the period and Consumer Goods returning to growth.
As noted, macroeconomic and geopolitical issues, specifically indirect tariff impacts, have led to widespread uncertainty and a weakening US dollar, both of which have contributed to a Q225 significant slowdown in Controls, resulting in reduced revenue and an increase in overall net debt. These effects have been experienced across the industry.
Reducing the debt position within the stated appetite of 1.0-2.0x as soon as possible will be of critical focus to the Board over the next 12-18 months, whilst also managing and minimising the impact of global volatility in the short term. With strong foundations in place, the Board believes that Strix has and will continue to build resilience into its strategy and business model as the market continues to evolve."
Analyst & Investor Presentation
Strix will be hosting a presentation for analysts later this morning, at 11:00am (BST). Analysts wishing to attend should email strix@gracechurchpr.com for details.
Strix will also be conducting an online investor presentation on 2 October 2025 at 11:30am (BST), providing an update to investors following today's results and to answer questions submitted by viewers.
The webinar is open to all existing and potential shareholders, and registration is free. You can sign up to register here: https://us06web.zoom.us/webinar/register/WN_ysHvy2iFSiKFU6av2iWniA#/registration
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
Jordan Warburton / Louisa Waddell (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) 204 582 3500
Heather Armstrong / Claire Norbury
The person responsible for arranging release of this Announcement on behalf of the Company is Mark Bartlett.
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 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).
CEO's Report
Introduction
The Group reports mixed trading results for the first half of 2025. In terms of Billi and Consumer Goods, Strix has continued to deliver against its strategic initiatives, with both divisions reporting strong trading performances during the period. However, Controls has continued to face challenges due to macro headwinds, particularly indirect tariff implications and currency impacts, driving substantially lower order volumes and revenues in Q225. Q325 has seen a partial stabilisation of the market, although not yet a recovery in lost volumes.
Following the restructuring and rebasing initiatives undertaken in FY24, the Group has solid foundations to deliver on its strategy. Macroeconomic and geopolitical concerns continue to pose short-term challenges, but this foundational strength, combined with ongoing proactive mitigation measures undertaken by the Group, will allow Strix to bear the impacts of global market volatility and effectively capitalise when the Control's market starts to recover.
Market Overview
Macroeconomic and geopolitical headwinds have continued to impact in H125. UK manufacturing remains in a period of contraction (UK PMI 47.0 in August; 11th straight month below 50) amid weaker orders and tariff uncertainty, while broader global demand continues to be volatile. Albeit these are cyclical pressures and do not alter the Group's long-term growth strategy.
Political and economic uncertainty in key Regulated markets (UK and US) has tempered consumer spending and delayed orders in Controls, particularly due to indirect tariff effects and the impact of a weaker US dollar, as flagged in the July trading update. Conversely, Low-Cost controls are gaining traction in Less Regulated markets, validating the Group's investment in this space while also broadening its addressable market. Due to the largely replacement nature of the Controls business, management's Q425 expectations are based on a degree of Regulated market recovery coming through and therefore an expected higher than normal weighting to H225 in terms of sales.
Health, wellness and sustainability remain powerful category drivers across all divisions. Demand for efficient, filtered-water and energy-saving solutions continues to outpace general appliance demand, reinforcing Strix's product roadmap and brand positioning, particularly for the Consumer Goods and Billi divisions. External market data also points to steady Small Domestic Appliances ("SDA") growth in the coming years.
Urbanisation and return-to-office refurbishment continue to support premium hydration and boiling-water systems, particularly for Billi, where the division delivered growth in HY25 via an expanded product range. Billi AU successfully moved site, with the new manufacturing facility becoming operational in July 2025. This milestone increases production capacity to support future growth, with the official opening of the new site scheduled for Q425.
The Group continues to expect the global SDA market to reach 4.1 billion units by 2029 (c. 1.5% CAGR 2024-2029), consistent with prior guidance, while broader appliance market sources project mid-single-digit value growth through 2030-2032. Strix's mix shift toward Low-Cost controls and health and well-being solutions positions the Group to capture market share despite near-term volatility.
Controls
Controls contributed significantly reduced revenues, down (24.2)% to £23.1m (HY24: £30.5m) at CER following the previously noted geopolitical and macroeconomic uncertainties, which have contributed to order delays and lower production volumes at key OEMs. The division is seeing higher than normal activity from copyists, particularly in product lines aimed at the US market (representing approximately c. 10% of revenue generated in the Controls division). As a result, the number of actions taken to protect Strix products and IP has increased in HY25 as the safeguarding of the Group's market share increases in priority.
The Group continued to make significant operational progress during the first half in Controls. 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. Next Gen controls are now confirmed in new products at several of the Group's partner OEMs with initial shipments targeted for Q425. As demonstrated by the launch of the Low-Cost and Next Generation controls, new product development and product optimisation 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. The Next Gen component also offers the key benefit of being smaller in size, meaning the level of materials required is reduced and therefore margins are less affected by volatile commodity prices. The Group's enhanced Industrial Design Service also proved to be of particular interest at the Spring Canton Fair, with multiple projects signed up to and more expected to follow.
Billi
Billi has continued to deliver a strong performance in HY25, reporting double-digit growth rates of 10.4% and contributing £23.6m (HY24: £21.4m) in revenue. The geographical rollout strategy has continued to progress, gaining traction with new customers in key markets. The division also successfully moved its HQ site in Australia, with a new enlarged manufacturing facility operational in July 2025, increasing capacity for future growth. Billi is retaining its focus on innovation and new product development, with the smaller capacity Omnione™ unit to service the Australia and New Zealand residential market to launch in Q425.
Billi's main growth areas are focused on geographical expansion, particularly through Europe, South East Asia and the Middle East, alongside factors including custom tapware finishes, design profiles and space conservation requirements. The division continues to benefit from multiple recurring revenue streams including rental, servicing contracts and filter requirements, providing significant cashflow benefits to Strix.
Consumer Goods
Following the successful restructuring of the Consumer Goods division in 2024, it has been pleasing to see the division return to growth during HY25, contributing £15.2m (HY24: £14.2m) in adjusted revenues. 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.
Alongside this, a number of important initiatives were delivered which have strengthened the division's competitive position and broadened its product offering. A patent-pending filter series aimed at addressing potential PFAS contamination in household water supplies has been developed and launched, positioning the business at the forefront of solutions to an increasingly important health and environmental issue. In addition, September 2025 marked the launch of the LAICA brand in the UK, supported by a creative and innovative marketing campaign that is expected to build consumer awareness and unlock new growth opportunities in this market. The division is also planning the installation of new automated lines for the assembly and packaging of anti-bacterial filters has enhanced efficiency and capacity, ensuring the business is well placed to meet growing customer demand in Q425.
While the division sells into the SDA market, which as noted, continues to see high levels of volatility, these achievements reflect the continued momentum within the Consumer Goods division and its ability to deliver both operational improvements and product innovation, supporting its return to sustainable growth.
Sustainability
Sustainability remains at the core of Strix's purpose-driven growth strategy, and HY25 marked another period of tangible progress on the Group's "Planet, People, Purpose" framework, aligned to the UN Sustainable Development Goals. All the Group's primary operations continue to operate on a carbon-neutral basis.
The Group advanced a number of initiatives to strengthen its environmental commitments. Zero-pathway plans are being developed across all subsidiaries, with Billi's pathway already completed and further reviews underway to accelerate progress. Strix remains on track to achieve record internal electricity generation in 2025, while its 2023 CDP rating improved from 'C' to 'B', with the 2024 return submitted on schedule. Sustainability is also fully embedded into the Group's innovation agenda, with continued investment in the Next Generation control platform as it moves through commercialisation, alongside co-development programmes with leading Western partners focused on energy-efficient and sustainable hydration solutions.
Progress was also made in enhancing transparency and stakeholder engagement. LACIA published its first standalone integrated ESG report, developed in line with the International Framework, GRI Standards and the new VSME guidelines for non-listed SMEs. This report not only reflects LAICA's commitment to robust disclosure but also supports the Group's relationships with local financial institutions and government bodies.
On the social side, Strix launched its new global HR and people platform, HiBob. This initiative is designed to empower employees, promote collaboration, and strengthen connectedness across the organisation.
Together, these actions demonstrate how Strix continues to embed sustainability across every area of its operations-environmental performance, product development, governance, and people, ensuring that long-term structural growth is closely aligned with tangible ESG outcomes.
Refinancing
Following on from the significant reduction in net debt in FY24, and as announced in the Group's Trading Update published 30 July 2025, Strix formally initiated a competitive refinancing process with nine interested lending banks. Unfortunately, due to the difficult macro trading conditions, Strix has taken the decision to put this process on hold, as it became obvious that the Group would not be able to secure new appropriate, cost-effective and flexible funding at this time.
The Group's existing facilities continue to operate until October 2026 providing security and flexibility to the business. Strix has been in constructive and supportive discussions with its existing lending group to amend current facilities to ensure they appropriately support the business ahead of a future refinance process. Further details on this are provided in the CFO statement.
In the face of the macroeconomic and geopolitical challenges, and to support a successful future refinance, management is currently developing an accelerated debt reduction programme. Strix will report progress on this at the next trading update in November 2025.
Change of Year End
The Audit Committee has reviewed the date of the Group's financial year end and, to align better with industry cycles, especially around the key holiday season sales, as well as to allow Strix to integrate industry insights gained from attending the Canton Fair in April and October into its forecasting, the Company intends to change its accounting reference date and financial year end from 31 December to 31 March.
The Company will report its next audited results for the 15-month period to 31 March 2026.
The schedule of financial reporting events for Strix will therefore be as follows:
· Trading and debt reduction update in November 2025
· Trading update in spring 2026
· Publication of its audited accounts for the 15 months to 31 March 2026 (planned to be released in July 2026 but in any event no later than 30 September 2026)
Outlook
Strix continues to navigate and mitigate where possible, the impacts of the volatile macroeconomic trading environment in the SDA market. Following significant work in previous periods, the Group's business model remains resilient, and the Group remains well positioned to capitalise as end markets continue to evolve.
Although it is usual for sales to be H2 weighted, H225 is expected to be more heavily weighted than in previous years due to the order deferrals and volatility seen in Controls in H125 and a presumed part recovery of volumes in Q425. Strix will provide a further trading update to the market in November 2025 following the Canton Fair where the leadership team will gather market intelligence and sentiment within the OEM community in the face of the macro environment. At the same time, the Group will report back on progress on the accelerated debt reduction programme.
Looking ahead there can be no doubt that the macroeconomic and geopolitical environment will continue to present challenges. However, notwithstanding this, the strong foundations of the Group mean the Board remain confident in the Group's medium-term outlook and expect results for the 15 months to 31 March 2026 to be in line with management expectations.
Mark Bartlett
CEO
29 September 2025
CFO's Review
Financial performance - continuing operations
HY25 (CER)2
HY25 (AER)2
HY24
Adjusted Revenue1 £m
Change
Adjusted GP%1/3
Change
Adjusted Revenue1 £m
Change
Adjusted GP%1/3
Change
Adjusted Revenue1 £m
Adjusted GP%1,3
Controls
23.1
(24.2)%
37.7%
(340)bps
23.1
(24.2)%
37.7%
(340)bps
30.5
41.1%
Billi (previously PFS)
23.6
10.4%
48.4%
(130)bps
22.5
5.0%
48.7%
(100)bps
21.4
49.7%
Consumer Goods
15.2
7.0%
27.6%
(450)bps
14.9
5.0%
27.6%
(450)bps
14.2
32.1%
Group
61.9
(6.4)%
36.3%
(360)bps
60.5
(8.5)%
36.3%
(360)bps
66.1
39.9%
1. Adjusted results from continuing operations exclude adjusting items Note 10 and results from discontinued operations
2. "CER" being Constant Exchange Rate, is calculated by translating the HY25 figures by the average HY24 exchange rate, and "AER" being Actual Exchange Rate.
3. Certain costs of sales have been reclassified as Central cost for the first time in HY25 and do not form part of the divisional GP% presented above. The prior period numbers have been restated for comparability (see note 3)
Revenue
Group revenues were £61.9m, representing a 6.4% decrease at CER (AER: down (8.5)% to £60.5m), as growth in Billi and Consumer Goods was more than offset by macro challenges in the Controls market.
Controls revenues dropped significantly in the first six months, by (24.2)% at CER to £23.1m (AER: (24.2)% to £23.1m). The reduction in Regulated and Less Regulated markets was largely due to the indirect impact of US tariffs introduced in early April with Chinese OEM customers choosing to run down stocks, reduce order volumes, slow production levels and conserve cash due to the unsettled macro trading conditions. Direct tariff impacts are lesser, with only c.10% of our controls revenues ending up in the US market.
Billi continued to perform strongly, reporting double-digit growth, up 10.4% at CER to £23.6m (AER: 5.0% to £22.5m). This predominantly reflects market share gains from a key competitor in Australia, as new products continue to gain traction, coupled with the ongoing expansion into the UK and European commercial markets.
Strix is also pleased to report that the Consumer Goods division has seen a return to solid revenue growth in the first six months, up 7.0% to £15.2m at CER (AER: 5.0% to £14.9m), following the restructuring undertaken in FY24. This is largely driven by increased OEM business, including the continued roll out of appliance manufacturing for a key baby formula customer, initiated in Q424.
Trading profit
The Group's gross margin reduced by (360)bps to 36.3% (AER: 36.3%; HY24: 39.9%), driving gross profit of £22.5m, (14.8)% down at CER (AER: (16.7)% down at £22.0m; HY24: £26.4m).
As expected, the Consumer Goods division has seen lower gross margins of 27.6% in the period (HY24: 32.1%) due to the ongoing roll out of appliance manufacturing, with additional products being launched in the period and driving growth going forward.
Gross margins in Controls have decreased (340)bps to 37.7% (HY24: 41.1%). This largely reflects the impact of the reduction in high margin Regulated/Less Regulated sales over a semi-fixed cost base. Coupled with a weaker US$ in the period, as c.50% of Controls sales are made in US$.
Billi, which operates in the high growth/high margin premium tap market, continued to report very strong margins, remaining comfortably above 45% at 48.4% at CER (AER: 48.7%; HY24: 49.7%).
Net overhead and distribution costs are running £(0.9)m lower than the prior half year at £12.7m at CER (HY24: £13.6m) as these costs have been carefully managed in the face of the Controls trading shortfall.
Reflecting all of the commentary above, Strix has seen a decrease in adjusted profit before tax, down (20.5)% to £6.2m at CER (AER: £6.1m; HY24: £7.8m).
Finance costs
Finance costs have reduced against the prior period to £3.6m (HY24: £4.9m). This is due to the reduction in average gross debt and the lower net debt leverage, resulting from the extensive cash generation/conservation actions taken in FY24.
Non-recurring adjusting items
Non-recurring adjusting items largely relate to costs incurred due to the successful relocation of Billi's HQ into enlarged premises in Melbourne, Australia (c.£0.3m), fit to support the division's ongoing growth journey.
The business also incurred strategic review costs of c.£1.6m including third party advisor fees. In part, to support the preparation for the bank refinance process, but also to build greater clarity around the Group's medium-term growth aspirations.
Cash flow
The Group observed a lower than targeted operating cash conversion, with an adjusted operating cash conversion ratio of 51.8% (target: 75%-85%; HY24: 115.4%). This is expected to be a transient impact, largely due to demand volatility temporarily increasing Controls inventory levels in the period.
Net debt and capital allocation
The Group's net debt position (as defined in our banking facility agreement) is £68.8m (FY24: £63.7m).
Due to the lower trading and cash conversion levels, net debt leverage has increased to 2.21x (FY24: 1.87x). This remains comfortably within covenants of 2.75x (FY24: 2.75x).
Banking and refinance
As previously reported, the Group planned to initiate a full competitive refinancing process in FY25. With advisor support, this process was started in HY25, with information packs going out to nine interested lending parties. Unfortunately, this process was subsequently put on hold when it became obvious that the Group would not be able to secure new appropriate cost-effective and flexible funding in the context of the unsettled macro conditions.
Following on from the one-year extension request that was granted by the existing lending group in September 2024, the current RCF will mature in October 2026, with the last Billi amortisation loan payment (£3.5m) due in November 2025. This extension provides the Group with the security and flexibility to work with the existing lending group ahead of a future refinance process. With the Billi term loan completely repaid (previously £14.0m amortisation per annum), Strix will be able to better utilise its future cash generation to accelerate reduction of RCF drawdown levels.
Since making the decision to put the refinance process on hold, Strix has been in proactive and supportive dialogue with the existing lending group. With all parties working together to amend the current facilities to ensure they appropriately support the business. This has culminated in a resetting of the DSCR covenant to an Interest Cover metric considered more fitting to an RCF extension, as well as a temporary relaxation of the leverage ratio to 3.00x from 30 September 2025 to 30 June 2026, to better support the Group's short term commercial strategies.
In the context of the current macro conditions and to further support a future refinance process, management are committing to an accelerated debt reduction programme. Plans are currently under-development in this regard and we look forward to reporting back on progress in November 2025. To maintain cost effective funding and complimenting the planned debt reduction, we have also agreed with lenders that the existing £80m RCF facility will amortise in May 2026 by £5.0m and in August 2026 by a further £2.5m.
Clare Foster
Chief Financial Officer
29 September 2025
Consolidated income STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)
Note
Period ended 30 June 2025
Period ended 30 June 2024*
£000s
£000s
Income statement
Revenue - before adjusting items
60,501
66,096
Revenue - adjusting items
10
-
(2,200)
Revenue
60,501
63,896
Cost of sales - before adjusting items
(38,532)
(39,702)
Cost of sales - adjusting items
10
165
(1,062)
Cost of sales
(38,367)
(40,764)
Gross profit
22,134
23,132
Distribution costs
(4,479)
(5,489)
Administrative expenses - before adjusting items
(7,998)
(8,334)
Administrative expenses - adjusting items
10
(3,095)
(8,415)
Administrative expenses
(11,093)
(16,749)
Other operating income
159
194
Operating profit - before adjusting items
9,651
12,765
Adjusting items
10
(2,930)
(11,677)
Operating profit
6,721
1,088
Finance costs
4
(3,671)
(5,009)
Finance income
74
91
Profit before taxation - before adjusting items
6,054
7,847
Adjusting items
10
(2,930)
(11,677)
Profit/(loss) before taxation
3,124
(3,830)
Income tax expense - before adjusting items
(2,123)
(1,350)
Income tax credit - adjusting items
10
134
150
Income tax expense
(1,989)
(1,200)
Profit from continuing operations - before adjusting items
3,931
6,497
Adjusting items
10
(2,796)
(11,527)
Profit/(loss) from continuing operations
1,135
(5,030)
Loss from discontinued operations - before adjusting items
-
(245)
Loss from discontinued operations - adjusting items
10
-
(2,494)
Loss from discontinued operations
-
(2,739)
Profit/(loss) for the period
1,135
(7,769)
Profit/(loss) for the period attributable to:
Equity holders of the Company
1,205
(7,796)
Non-controlling interests
(70)
27
1,135
(7,769)
Profit/(loss) for the period attributable to equity holders of the Company arises from:
Continuing operations
1,205
(5,057)
Discontinued operations
-
(2,739)
1,205
(7,796)
Earnings/(loss) per share (pence) from continuing operations
Basic
5
0.5
(2.3)
Diluted
5
0.5
(2.3)
Earnings/(loss) per share (pence)
Basic
5
0.5
(3.5)
Diluted
5
0.5
(3.5)
*Prior period numbers have been re-presented (see note 1)
Consolidated STATEMENT of comprehensive income
FOR THE PERIOD ENDED 30 JUNE 2025 (UNAUDITED)
Period ended 30 June 2025
Period ended 30 June 2024 Restated*
£000s
£000s
Other comprehensive income/(expense)
Profit/(loss) for the period
1,135
(7,769)
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations, net of tax
(610)
(1,307)
Exchange differences on translation of discontinued operation, net of tax
-
(42)
Total comprehensive income/(expense) for theperiod
525
(9,118)
Total comprehensive income/(expense) for the period attributable to:
Equity holders of the Company
580
(9,130)
Non-controlling interests
(55)
12
525
(9,118)
Total comprehensive income/(expense) for the period attributable to equity holders of the Company arises from:
Continuing operations
580
(6,349)
Discontinued operations
-
(2,781)
580
(9,130)
*Prior period numbers have been re-presented (see note 1) and restated (see note 13).
consolidated statement of financial position
as at 30 June 2025 (unaudited)
Note
As at 30 June 2025
(audited) As at 31 December 2024
ASSETS
£000s
£000s
Non-current assets
Intangible assets
61,830
63,021
Property, plant and equipment
48,011
44,143
Deferred tax asset
916
1,512
Total non-current assets
110,757
108,676
Current assets
Inventories
6
31,193
25,391
Trade and other receivables
7
23,537
22,676
Current income tax receivable
-
292
Cash and cash equivalents
12,697
15,117
Total current assets
67,427
63,476
Total assets
178,184
172,152
EQUITY AND LIABILITIES
Equity
Share capital and share premium
32,002
32,002
Foreign currency translation reserve
(6,356)
(5,731)
Retained earnings
20,391
18,659
Non-controlling interests
616
671
Total equity
46,653
45,601
Current liabilities
Trade and other payables
31,163
30,729
Borrowings
8
5,261
11,230
Lease liabilities
1,501
1,129
Current income tax liabilities
2,236
2,396
Total current liabilities
40,161
45,484
Non-current liabilities
Lease liabilities
5,942
2,545
Deferred tax liability
8,693
8,998
Borrowings
8
75,997
68,807
Post-employment benefits
738
717
Total non-current liabilities
91,370
81,067
Total liabilities
131,531
126,551
Total equity and liabilities
178,184
172,152
consolidated statement of changes in equity
as at 30 June 2025 (unaudited)
Share capital and share premium
Share based payment reserve
Retained earnings
Foreign currency translation reserve
Total Equity attributable to owners
Non-controlling interests
Total Equity
£000s
£000s
£000s
£000s
£000s
£000s
£000s
Balance at 1 January 2025
32,002
-
18,659
(5,731)
44,930
671
45,601
Profit/(loss) for the period
-
-
1,205
-
1,205
(70)
1,135
Other comprehensive (expense)/income
-
-
-
(625)
(625)
15
(610)
Total comprehensive income/(expense) for the period
-
-
1,205
(625)
580
(55)
525
Share-based payment transactions
-
-
527
-
527
-
527
Total transactions with equity holders recognised directly in equity
-
-
527
-
527
-
527
Balance at 30 June 2025
32,002
-
20,391
(6,356)
46,037
616
46,653
Balance at 1 January 2024
23,642
572
18,167
-
42,381
653
43,034
Movement in opening balances due to restatement*
-
-
967
(2,359)
(1,392)
-
(1,392)
Balance at 1 January 2024 (restated)*
23,642
572
19,134
(2,359)
40,989
653
41,642
(Loss)/profit for the period
-
-
(7,796)
-
(7,796)
27
(7,769)
Other comprehensive expense (restated)*
-
-
-
(1,334)
(1,334)
(15)
(1,349)
Total comprehensive (expense)/income for the period (restated)*
-
-
(7,796)
(1,334)
(9,130)
12
(9,118)
Share-based payment transactions
-
129
-
-
129
-
129
Transfers between reserves
2
(698)
696
-
-
-
-
Issue of shares
8,748
-
-
-
8,748
-
8,748
Transaction costs
(390)
-
-
-
(390)
-
(390)
Total transactions with equity holders recognised directly in equity
8,360
(569)
696
-
8,487
-
8,487
Other transactions recognised directly in equity
-
(3)
-
-
(3)
-
(3)
Balance at 30 June 2024 (restated)*
32,002
-
12,034
(3,693)
40,343
665
41,008
*Prior period numbers have been restated (see note 13).
consolidated statement of cash flows
for the PERIOD ended 30 June 2025 (unaudited)
Period ended
Period ended
30 June 2025
30 June 2024
Note
£000s
£000s
Cash flows from operating activities
Cash generated from operations
9(a)
5,427
17,940
Tax paid
(1,440)
(1,365)
Net cash generated from operating activities
3,987
16,575
Cash flows from investing activities
Purchase of property, plant and equipment
(1,824)
(1,522)
Capitalised development costs
(914)
(2,068)
Purchase of other intangibles
(304)
(321)
Finance income
74
91
Net cash used in investing activities
(2,968)
(3,820)
Cash flows from financing activities
Drawdowns/(repayments) of borrowings
9(b)
576
(15,550)
Finance costs paid
(3,000)
(4,645)
Principal elements of lease payments
9(b)
(966)
(849)
Net proceeds from issue of new shares
-
8,418
Net cash used in financing activities
(3,390)
(12,626)
Net (decrease)/increase in cash and cash equivalents
(2,371)
129
Cash and cash equivalents at the beginning of the period
15,117
20,114
Effects of foreign exchange on cash and cash equivalents
(49)
(281)
Cash and cash equivalents at the end of the period
12,697
19,962
Notes to the condensed INTERIM cONSOLIDATED financial statements
for the PERIOD ended 30 June 2025 (unaudited)
1. Basis of preparation
These condensed consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all the information required for a complete set of financial statements prepared in accordance with UK-adopted International Accounting Standards. However, explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Group's financial position and its financial performance compared with the comparative periods ended 31 December 2024 and 30 June 2024. These interim financial statements should be read in conjunction with the last annual consolidated financial statements as at 31 December 2024.
The Group's annual financial statements are prepared in accordance with UK-adopted International Accounting Standards. The interim financial statements have been prepared in accordance with the accounting policies set out in the Group's Annual Report and Accounts for the year ended 31 December 2024, which is available at www.strixplc.com. The comparative figures for the financial year ended 31 December 2024 have been extracted from the full Annual Report and Accounts for that financial year. Those accounts have been reported on by the Company's auditor. The Independent Auditor's report was unqualified. These condensed consolidated interim financial statements are unaudited.
Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2025 reporting periods and have not been early adopted by the Group. These standards and amendments are outlined below.
Standard/Interpretation
Effective date Periods beginning on or after
Amendments to the Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7
1 January 2026
IFRS 19 Subsidiaries without Public Accountability: Disclosures
1 January 2027
IFRS 18 Presentation and Disclosure in Financial Statements
1 January 2027
Re-presentation of income statement
As permitted by IAS 1, the Group has elected to present its income statement (statement of profit or loss) separately from its statement of comprehensive income as this provides more relevant details to users. The Group previously presented a single statement of profit and loss and other comprehensive income.
Going concern
These interim financial statements have been prepared on the going concern basis. The Directors have made enquiries to assess the appropriateness of continuing to adopt the going concern basis.
In making this assessment they have considered:
· The current and historic trading and profitability performance of the Group.
· Income statement and cash flow forecasts for the period to 30 September 2026, including current and forecast debt covenant headroom.
· The current financial position of the Group, including (i) cash and cash equivalents balances of £12.7m (FY24: £15.1m) and (ii) undrawn and accessible RCF facilities of £4.1m (FY24: £10.5m). · The Group's current banking facilities mature on 25 October 2026. We are working in close partnership with our existing banking group to secure an extension to these facilities.
Based on these considerations, the Directors have concluded that there is a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. The key entities in the Group have traded profitably, excluding non-cash adjusted items, for an extended period of time. As a result, the Directors continue to adopt the going concern basis of accounting in preparing the interim financial statements and consider there are no material uncertainties about the Group's ability to continue as a going concern.
Seasonality of operations
The Group's revenue and profit after tax is subject to a degree of seasonality due to the occurrence of the Chinese New Year public holiday during the first half of the year and the seasonality of small domestic appliance markets. In the financial year ended 31 December 2024, 45% (FY23: 45%) of the Group's revenue accumulated in the first half of the year and £(7.8)m loss after tax was reported in HY24, against a £(1.4)m FY24 loss after tax (FY23: £3.8m profit after tax reported in HY23, against a £16.2m FY23 profit after tax).
2. Critical accounting judgements and estimates
In the application of the Group's accounting policies, the Directors are required to make judgements (other than those involving estimations) that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
In preparing these condensed consolidated interim financial statements, the significant judgements made by management in applying the Group's accounting policies and the key sources of estimation uncertainty include those disclosed in the consolidated financial statements for the year ended 31 December 2024.
Alternative performance measures (APMs) - Adjusting items
Management and the Board consider quantitative and qualitative factors in classifying items as adjusting items and exercise judgement in determining the adjustments to apply to International Financial Reporting Standards (IFRS) measures. This assessment covers the nature of the item, cause of occurrence, frequency, predictability of occurrence of the item or related event, and the scale of the impact of that item on reported performance (see note 10).
3. SEGMENTAL REPORTING
Management has determined the operating segments based on the operating reports reviewed by the Board of Directors that are used to assess both performance and strategic decisions. Management has identified that the Board of Directors is the chief operating decision maker in accordance with the requirements of IFRS 8 'Operating segments.
The Board of Directors has identified three reportable segments from a product perspective, selling primarily to Original Equipment Manufacturers and commercial and residential customers based in China, Italy, Australia, New Zealand and the United Kingdom:
1) Controls consists of the design, manufacture and sale of thermostatic controls and cordless interfaces.
2) Billi (previously Premium Filtration Systems (PFS)) is a leading brand for the supply of premium instant boiling, chilled and sparkling filtered water systems.
3) Consumer Goods includes products such as water dispensers, jugs, filters, water heating and temperature control, steam management and small household appliances for personal health and wellness.
For the first time in HY25, the Board has re-classified certain costs, including those relating to Group departments, as Central costs. This change was made to allow for improved analysis of underlying divisional trading performance. The prior period numbers have been restated for comparability.
The Board of Directors primarily uses a measure of gross profit to assess the performance of the operating segments, broken down into revenue and cost of sales for each respective segment which is reported to them on a monthly basis. Information about segment revenue, cost of sales and gross profit is disclosed below.
Reported results
Period ended 30 June 2025
£000s
Controls
Billi
Consumer Goods
Central
Total
Revenue
23,142
22,440
14,919
-
60,501
Cost of sales
(14,410)
(11,511)
(10,643)
(1,803)
(38,367)
Gross profit
8,732
10,929
4,276
(1,803)
22,134
Reported results
Period ended 30 June 2024 (restated)
£000s
Controls
Billi
Consumer Goods
Central
Total
Revenue
28,322
21,364
14,210
-
63,896
Cost of sales
(18,195)
(10,754)
(10,482)
(1,333)
(40,764)
Gross profit
10,127
10,610
3,728
(1,333)
23,132
Adjusted results
Period ended 30 June 2025
£000s
Controls
Billi
Consumer Goods
Central
Total
Revenue
23,142
22,440
14,919
-
60,501
Cost of sales
(14,410)
(11,511)
(10,808)
(1,803)
(38,532)
Gross profit
8,732
10,929
4,111
(1,803)
21,969
Adjusted results
Period ended 30 June 2024 (restated)
£000s
Controls
Billi
Consumer Goods
Central
Total
Revenue
30,522
21,364
14,210
-
66,096
Cost of sales
(17,972)
(10,754)
(9,643)
(1,333)
(39,702)
Gross profit
12,550
10,610
4,567
(1,333)
26,394
Results from discontinued operations are not included in these numbers and were previously reported under Billi.
The Group derives revenue from the transfer of goods and services over time and at a point in time. Revenue derived over time in the current period is £0.9m (HY24: £0.8m) and this is included in Billi. All other revenues are derived at a point in time.
Below is the geographical analysis of adjusted revenue from external customers.
Period ended 30 June 2025
Period ended 30 June 2024
Australia
14,500
14,199
China
24,296
28,455
Italy
6,112
6,177
UK
8,503
8,141
Others
7,090
9,124
Total
60,501
66,096
Assets and liabilities
No analysis of the assets and liabilities of each operating segment is provided to the Board of Directors as part of monthly management reporting. Therefore, no analysis of segmented assets or liabilities is disclosed in this note.
Non-current assets (i) attributed to country of domicile and (ii) attributable to all other foreign countries
In accordance with IFRS 8, the following table discloses the non-current assets located in both the Company's country of domicile (the Isle of Man) and foreign countries, primarily China, Italy, Australia, New Zealand and the United Kingdom where the Group's main principle operating subsidiaries are domiciled.
30 June 2025
31 December 2024
£000s
£000s
Country of domicile
Intangible assets
10,945
10,966
Property, plant and equipment
1,613
1,826
Total country of domicile non-current assets
12,558
12,792
Foreign countries
Intangible assets
50,885
52,055
Property, plant and equipment
46,398
42,317
Total foreign non-current assets
97,283
94,372
Total non-current assets
109,841
107,164
The above table excludes non-current deferred tax.
Major customers
In the first half of 2025, no customer individually accounted for at least 10% of total revenues (HY24: no customer).
4. finance costs
Period ended 30 June 2025
Period ended 30 June 2024
£000s
£000s
Letter of credit charges
76
80
Lease liability interest
183
90
Borrowing costs
3,412
4,839
Total finance costs
3,671
5,009
Further information about the Group's borrowings is provided in Note 8.
5. Earnings/ (loss) per share
The calculation of HY25 basic and diluted earnings per share is based on the following data:
Period ended 30 June 2025
Earnings (£000s)
Earnings for the purpose of basic and diluted earnings per share
1,205
Number of shares (000s)
Weighted average number of shares for the purposes of basic earnings per share
229,860
Weighted average dilutive effect of conditional share awards
6,016
Weighted average number of shares for the purposes of diluted earnings per share (000s)
235,876
Earnings per ordinary share (pence)
Basic earnings per ordinary share
0.5
Diluted earnings per ordinary share
0.5
Adjusted earnings per ordinary share (pence)
Basic adjusted earnings per ordinary share
1.7
Diluted adjusted earnings per ordinary share
1.7
The calculation of HY25 basic and diluted adjusted earnings per share is based on the following data:
Adjusting items
Period ended 30 June 2025
£000s
Profit for the period
1,205
Adjusting items before tax (note 10)
2,930
Tax impact
(134)
Adjusting items after tax
2,796
Adjusted earnings
4,001
The calculation of HY24 basic and diluted loss per share is based on the following data:
Period ended 30 June 2024
Continuing operations
Discontinued operations
Total
Loss (£000s)
Loss for the purpose of basic and diluted earnings per share
(5,057)
(2,739)
(7,796)
Number of shares (000s)
Weighted average number of shares for the purposes of basic earnings per share
219,933
219,933
219,933
Weighted average dilutive effect of conditional share awards
4,654
4,654
4,654
Weighted average number of shares for the purposes of diluted earnings per share (000s)
224,587
224,587
224,587
Loss per ordinary share (pence)
Basic loss per ordinary share
(2.3)
(1.2)
(3.5)
Diluted loss per ordinary share
(2.3)
(1.2)
(3.5)
Adjusted earnings/(loss) per ordinary share (pence)
Basic adjusted earnings/(loss) per ordinary share
2.9
(0.1)
2.8
Diluted adjusted earnings/(loss) per ordinary share
2.9
(0.1)
2.8
The weighted average dilutive effect of conditional share awards of 4,653,581 are not included in the weighted average calculation for diluted loss per ordinary share for HY24 because they are anti-dilutive since there is a loss after tax. These were however, considered for diluted adjusted earnings per ordinary share.
The calculation of HY24 basic and diluted adjusted earnings per share is based on the following data:
Period ended 30 June 2024
Continuing operations
Discontinued operations
Total
£000s
£000s
£000s
Loss for the period
(5,057)
(2,739)
(7,796)
Adjusting items before tax (note 10)
11,677
2,494
14,171
Tax impact
(150)
-
(150)
Adjusting items after tax
11,527
2,494
14,021
Adjusted earnings
6,470
(245)
6,225
The denominators used to calculate both basic adjusted and diluted adjusted earnings per share are the same as those shown above.
6. Inventories
30 June 2025
31 December 2024
£000s
£000s
Raw materials and consumables
9,136
8,009
Finished goods and goods in transit
22,057
17,382
31,193
25,391
The cost of inventories recognised as an expense and included in cost of sales amounted to £22.3m (HY24: £24.8m).
7. Trade and other receivables
As at 30 June 2025
As at 31 December 2024
£000s
£000s
Amounts falling due within one year:
Trade receivables current
15,221
15,254
Trade receivables past due
645
1,251
Trade receivables - gross
15,866
16,505
Loss allowance
(536)
(569)
Trade receivables - net
15,330
15,936
Prepayments
1,739
1,434
Advances to suppliers
1,675
520
VAT receivable
3,958
3,576
Other receivables
835
1,210
23,537
22,676
Trade and other receivables carrying values are considered to be equivalent to their fair values.
Advances to suppliers includes payments in advance for capital items of £1.2m (FY24: £0.5m).
8. Borrowings
30 June 2025
31 December 2024
£000s
£000s
Current bank loans
5,261
11,230
Non-current bank loans
75,997
68,807
81,258
80,037
The current portion of borrowings includes accrued interest of £1.1m (FY24: £1.2m).
Current and non-current borrowings are shown net of loan arrangement fees of £0.5m (FY24: £1.0m) and £0.6m (FY24: £0.7m) respectively.
9. Cash flow statement notes
a) Cash generated from operations
Period ended 30 June 2025
Period ended 30 June 2024
£000s
£000s
Cash flows from operating activities
Operating profit from continuing operations
6,721
1,088
Loss from discontinued operations before interest
-
(2,733)
Operating profit/(loss)
6,721
(1,645)
Adjustments for:
Depreciation of property, plant and equipment
2,067
2,176
Depreciation of right-of-use assets
918
785
Amortisation of intangible assets
1,860
1,730
Impairment of intangible assets and PPE from continuing operations
-
3,923
Impairment associated with discontinued operations
-
2,292
Other non-cash flow items
(165)
5,429
Share based payment transactions
582
129
Net exchange differences
260
318
12,243
15,137
Changes in working capital:
Increase in inventories
(5,727)
(3,721)
Decrease in trade and other receivables
245
3,731
(Decrease)/increase in trade and other payables
(1,334)
2,793
Cash generated from operations
5,427
17,940
Other non-cash flow items in HY24 includes inventory provision of £0.9m, receivable write off of £1.8m, provision for settlements of £3.1m, reductions in warranty provision of £0.7m and others of £0.3m.
b) Movement in net debt
Non-cash movements
At
Cash flows
Currency movements
Other movements
At
01-Jan-25
30-Jun-25
£000s
£000s
£000s
£000s
£000s
Borrowings, net of loan arrangement fees
(80,037)
(576)
(176)
(469)
(81,258)
Lease liabilities
(3,674)
966
237
(4,972)
(7,443)
Total liabilities from financing activities
(83,711)
390
61
(5,441)
(88,701)
Cash and cash equivalents
15,117
(2,371)
(49)
-
12,697
Net debt
(68,594)
(1,981)
12
(5,441)
(76,004)
Net debt as defined in our banking facility agreement is £68.8m (FY24: £63.7m) as it excludes accrued interest of £1.1m, right-of-use lease liabilities of £7.4m and £1.3m security/guarantee arrangements in relation to the new Billi HQ location (FY24: accrued interest of £1.2m; right-of-use liabilities of £3.7m).
10. ADJUSTING ITEMS
Adjusting items are excluded from our adjusted results by virtue of their nature, cause and predictability of occurrence, frequency and scale of impact on the underlying performance in order to better reflect management's view of the underlying trends and operating performance of the Group that is more comparable over time.
Adjusting items have been broken down as follows:
Adjusting items
Period ended 30 June 2025
£000s
Non-recurring items:
Restructuring/rebasing1:
Controls
32
Consumer Goods
(165)
Billi
299
Strategic review
1,613
Total (A)
1,779
Recurring items:
Share based payments
582
Amortisation charges on acquired intangibles
569
Total (B)
1,151
Adjusting items before tax (A+B)3
2,930
Tax impact of adjusting items
(134)
Adjusting items after tax
2,796
Period ended 30 June 2024
Adjusting items
Continuing operations
Discontinued operations
Total
£000s
£000s
£000s
Non-recurring items:
Restructuring/rebasing1:
Controls
1,186
-
1,186
Consumer Goods
6,362
-
6,362
Billi
-
2,494
2,494
Central Costs
230
-
230
Mergers and acquisitions
27
-
27
Settlements2
3,114
-
3,114
Total (A)
10,919
2,494
13,413
Recurring items:
Share based payments
129
-
129
Amortisation charges on acquired intangible assets
629
-
629
Total (B)
758
-
758
Adjusting items before tax (A+B)3
11,677
2,494
14,171
Tax impact of adjusting items
(150)
-
(150)
Adjusting items after tax
11,527
2,494
14,021
1 £(0.2)m (HY24: £1.1m) of adjusting (income)/costs from restructuring is included in Consumer Goods cost of sales and the balance of all other adjusting items are in administrative expenses (HY24: £0.2m Controls, £0.9m Consumer Goods).
2 £nil (HY24: £2.2m) of adjusting items in settlements are against Controls revenue, in line with IFRS 15 Revenue from Contracts with Customers.
3 £3.1m (HY24: £8.4m) of total adjusting items from continuing operations are included in administrative expenses.
Reconciliation of profit before taxation to Non-GAAP Measures
Period ended 30 June 2025
Period ended 30 June 2024
£000s
£000s
Profit/(loss) before taxation - continuing operations
3,124
(3,830)
Add back adjusting items in revenue: Settlements
-
2,200
Add back adjusting items in cost of sales: Restructuring/rebasing
(165)
1,062
Add back adjusting items in administrative expenses:
Restructuring/rebasing
331
6,716
Strategic review
1,613
-
Mergers and acquisitions
-
27
Settlements
-
914
Amortisation charges on acquired intangible assets
HY25
Adjusting items:
1. Restructuring/rebasing costs of £0.2m, include the following:
a) Site costs £0.3m - Billi relocation of the HQ to a larger site in Melbourne, Australia (£0.3m) and Controls closure of the HK office (£32k)
b) Consumer Goods £(0.2)m income - sale of inventory, previously written off as part of the commercial reviews in FY24
2. Strategic review £1.6m - Costs including third party advisor fees, incurred in part to support the preparation for the bank refinance process and also to build greater clarity around the Group's medium-term growth aspirations.
HY24
Adjusting items non-recurring from continuing operations:
1. Restructuring/rebasing of £7.8m, includes the following:
a) Consumer Goods £6.4m - Impairments amounting to £5.8m including tooling/intangibles, inventories and licensing agreements associated with product lines in the Consumer Goods division where the group does not intend to place further commercial focus or allocate resources. Decisions were made based on the level of additional investment in both time and resources required to get to an end product that can be successfully marketed, including the provision of a suitable marketing and promotional strategy versus the expected timing and profitability of that product line/group.
Additional personnel costs relating to the restructuring of the Consumer Goods division totalled £0.6m.
b) Controls £1.2m - Certain Controls capital expenditure projects were deferred to allow the business to retain additional cash within the Group and reduce net debt levels. This timing change resulted in the £0.8m impairment of specific fixed term licensing debtors that related to this technology.
Additional restructuring costs related to the announced part-closure of our Ramsey manufacturing site totalled £0.4m.
c) Central costs of £0.2m - Additional personnel costs relating to the restructuring of the central team totalled £0.2m.
2. Settlements - The £3.1m of non-recurring adjusting costs related predominantly to the Group being in the final stages of negotiating a commercial settlement with one of its key OEM customers for £2.2m. We accrued for this amount within the 30 June 2024 balance sheet as an adjusting post balance sheet event for HY24. As this is a non-recurring and material amount, this was presented as an adjusting item in the HY24 income statement as a reduction in revenue. The other £0.9m relates to a final settlement agreement with all parties to the LAICA acquisition, regarding the transfer of a Taiwanese property.
Adjusting items from discontinued operations:
Following a comprehensive review of the Group's business unit Halopure (part of PFS), it was concluded that the Group would look to dispose of this business on the open market. Disposal took place via sale at a nominal value in November 2024, and Halopure was disclosed as a discontinued operation in the Group's HY24 numbers. The net assets of the business were reclassified as assets held for sale in the Group's balance sheet and were impaired by £2.3m to reflect the minimal expected fair value less costs to sell on disposal. Redundancy costs of £0.2m were also recognised in line with efforts to dispose of the business.
11. CAPITAL Commitments
30 June 2025
31 December 2024
£000s
£000s
Contracted for but not provided in the interim financial statements: Property, plant and equipment
987
1,792
The above commitments relate to production line automation in the Group's factory in China in HY25 and FY24.
12. RELATED PARTY TRANSACTIONS
Key management compensation
The following table details the aggregate compensation paid in respect of key management, which includes the Directors and the members of the Operational Board, representing members of the senior management team from all key departments of the Group.
Period ended 30 June 2025
Period ended 30 June 2024
£000s
£000s
Salaries and other short-term employment benefits
1,197
1,088
Post-employment benefits
96
83
Share-based payment transactions
-
82
1,293
1,253
There are no defined benefit schemes for key management.
13. CORRECTION OF TECHNICAL ACCOUNTING ERROR
a) In 2024, the Group discovered a historic technical accounting error with the translation of the goodwill, acquired
intangibles and deferred tax liabilities on acquired intangibles for its subsidiaries Billi Australia and Billi New Zealand. The error resulted in a material understatement of other comprehensive expense recognised for FY23, and a corresponding overstatement of intangible assets and deferred tax liabilities in the statement of financial position.
b) The Group has also re-presented the translation of its foreign operations into a separate component of equity, foreign currency translation reserve as required by IAS 21. The translation of foreign operations was previously reported as part of retained earnings.
These were rectified in the full Annual Report and Accounts for the year ended 31 December 2024 by restating the FY23 balances, please refer to note 29 of those statements for full disclosure.
These corrections have had no impact on the Group's consolidated income statement, its consolidated statement of cash flows, its banking covenants or its prior year KPIs.
The impact of the corrections on period ending HY24, is as follows:
Consolidated statement of comprehensive income (extract)
HY24
(Decrease)
HY24
£000s
£000s
£000s
Restated
Loss for the period
(7,769)
-
(7,769)
Other comprehensive expense for theperiod
Exchange differences on translation of foreign operations
(1,035)
(272)
(1,307)
Exchange differences on translation of discontinued operations
(42)
-
(42)
Total comprehensive expense for theperiod
(8,846)
(272)
(9,118)
Total comprehensive income is attributable to
Equity holders of the Company
(8,858)
(272)
(9,130)
Non-controlling interests
12
-
12
(8,846)
(272)
(9,118)
14. Post balance sheet events (non-adjusting)
On 26 September 2025, an amendment to the existing banking facilities was signed, covering:
· Removal of the DSCR covenant and introduction of an interest cover ratio (at 3.5x), to better fit in with the RCF extension.
· Temporary relaxation of the net debt leverage ratio to 3.00x (previously: 2.75x), from 30 September 2025 up to and including the 30 June 2026, to better support the Group's short-term commercial strategies.
· Introduction of RCF step-down payments of £5m in May 2026 and £2.5m in August 2026, aligning with management's accelerated debt reduction commitment.
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