REG - Strix Group PLC - Trading update and management change

StrixAnnouncement

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RNS Number : 9851I  Strix Group PLC  26 November 2025

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.
 
26 November 2025

Strix Group Plc

 

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

 

Trading update and management change

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,
today provides an update on trading and an upcoming management change.

Trading update

Further to the change of financial year end from 31 December 2025 to 31 March
2026 announced on 30 September 2025, the Group delivered revenue of £64.6m,
net debt of £70.3m (as defined in our banking facility agreement) and net
debt leverage of 2.5x, for the 6-month period ended 30 September 2025. These
figures are to be used as comparators for future reporting periods.

As previously noted, macroeconomic and geopolitical headwinds, particularly
indirect tariff impacts and a weakening US dollar, contributed to a marked
slowdown in the Controls division in Q225. Conditions partially stabilised in
Q325, and following recent discussions with key customers and partners at the
Canton Fair, suggest early indications of improvement emerging in Q425. This
is despite activity levels in South Africa, Turkey and US markets remaining
slower than expected. With tariff-related disruption beginning to ease, the
Board anticipates that this trend will continue to build into Q126.

The Group has always maintained a focus on retaining its Controls market share
via the regular introduction of enhanced technology and more cost competitive
products. This is demonstrated by the recent launch of the lower price point
Low-Cost and Next Generation controls, which are solutions enabling the Group
to expand into additional market segments, defend market share
against copyist manufacturers and increase Strix's overall addressable
market. In the current period, the division continues to experience higher
activity from copyists, with several actions being taken to further protect
Strix products and IP.

Elsewhere in the Group, Billi has continued to deliver a strong performance,
reporting double-digit growth rates (at constant exchange rate), and the
geographical rollout strategy has continued to progress, gaining traction with
new customers in key markets. The division's new HQ site in Australia, with a
new enlarged manufacturing facility, is now operational.

Following its restructuring last year, the Consumer Goods division has
returned to growth. Product manufacture in China for its leading global baby
brand customer continues to be rolled out, and additional products were
launched in the period as expected. While the Small Domestic Appliance market
continues to experience high levels of volatility, a number of important
operational and product innovation initiatives were delivered that have
strengthened the division's competitive position and broadened its product
offering, which are expected to support ongoing sustainable growth.

Assuming the post-tariff improvement in the financial performance of the
Controls division experienced in October and November continues to build, the
Board believes the Group is trading broadly in line with market expectations
for the financial period ending 31 March 2026 ("FY26").

Accelerated debt reduction programme

Over the last two months, the Group has made substantial progress on its
accelerated debt reduction programme, initiating a number of key actions to
enhance working capital efficiency. This includes a significant restructuring
of planned production volumes in its China factory aimed at reducing inventory
on hand by c.£8m over the last six months of the financial period. The Group
has also successfully put in place extended non-recourse debt factoring in its
Italian operations, bringing average debtor balances down by c.£2m. In
addition, the Board has decided to cancel the final dividend proposed for
FY24, which was due to be paid in December 2025, to further support the
Group's focus on reducing the net debt position.

Supplementing these direct actions, the business has continued to maintain
careful control of operational and capital expenditure. This close focus on
cash generation and conservation will continue to roll out into 2026, further
assisted by ongoing post-tariff recovery in the highly cash-generative
Controls market. The Group is pleased to report that the final Billi
acquisition loan repayment will be made on 28 November 2025. This brings to an
end the £14m per annum amortisation that the Group has been paying over the
last three years and thereby freeing up funds to reduce RCF borrowing levels.
To further accelerate debt reduction and in recognition of the current market
capitalisation, the Board is assessing a variety of operational and corporate
actions to enhance stakeholder value.

The above measures, alongside ongoing supportive and open dialogue with the
existing lending group, will allow Strix to maintain cost effective funding
and pave the way for a successful future refinance process. The Board has set
a target to reduce the Group's net debt leverage to c.1.5x in the next 12-18
months, while also managing and minimising the impact of global volatility in
the short term. The Board looks forward to providing further details on the
Group's progress towards this important goal in future updates.

Management change

The Company announces that Mark Bartlett will step down by mutual agreement as
Chief Executive Officer ("CEO") and a Board Director with effect from 29 May
2026. Mark joined Strix in 2006 and has served as CEO since 2015.

The Company has initiated the process to recruit a new CEO, which is being led
by Gary Lamb, Chairman. A further announcement will be made, as appropriate,
in due course.

Commenting on the Group's trading, Mark Bartlett, CEO of Strix, said:

"While market conditions have remained challenging, we are pleased to see
early indications of improvement in the Controls division. Billi continued to
deliver a strong performance and the Consumer Goods division returned to
growth following its restructuring last year. Alongside this, we have made
substantial progress on our accelerated debt reduction programme and are
targeting to reduce net debt leverage to c.1.5x in the next 12-18 months."

Commenting on the management change, Gary Lamb, Chairman of Strix, said:

"On behalf of the Board, I would like to thank Mark for his contribution both
as a member of the Strix Board and to the wider Strix business for almost 20
years. We wish him all the best for the future."

 

For further enquiries, please contact:

 

 Strix Group Plc                                         +44 (0) 1624 829829
 Gary Lamb, Chairman

 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).

 

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