REG - Strix Group PLC - Review of the Last Six Months & Trading Update

StrixAnnouncement

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RNS Number : 8347V  Strix Group PLC  09 March 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

Strix Group Plc

 

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

 

Review of the Last Six Months & Trading Update, Cost Optimisation
Programme and CEO 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,
announces a trading update, cost optimisation programme and CEO update.

 

Review of the Last Six Months & Trading Update

 

Back in September 2025, in the face of the macroeconomic challenges, a marked
slowdown in the Controls division in Q225, a backdrop of increasing commodity
prices and to support a future refinance, the Board announced decisions at the
time to implement an accelerated debt reduction programme. Subsequently in
Q425, the Board received an unsolicited offer for the Billi division, and
concluded that it was a sufficiently attractive offer and the optimal time to
dispose of this division, bringing the Group back into a strong net cash
position and removing the reliance on future debt funding.

 

As part of the accelerated debt reduction programme, the Group set a target to
reduce inventory on hand in the Controls division by c.£8 million in the last
six months of the financial period. This resulted in a significant
restructuring of production volumes in the Group's Chinese manufacturing
facility which, coupled with the ongoing trading improvements, has enabled
this reduction to be achieved ahead of schedule by 31 December 2025.

 

As has been widely reported, copper and silver commodity prices have increased
significantly (c.50% and c.300% respectively) since the start of 2025, with
heightened volatility especially in the price of silver in Q126. Due to the
focus on debt reduction, the Company had reduced capacity to take actions to
manage the impact of this via forward funding. However separately, and
consistent with its Chinese competitors in the market, the Group has initiated
a product price increase process ahead of Chinese New Year, with the
expectation that these will be executed for most Controls customers ahead of
the financial period end.

 

Whilst market conditions remain challenging, Strix is encouraged to report
that the early indications of post-tariff improvement in the Controls division
that it experienced in Q425 have continued to build in early 2026. With
trading volumes, most notably in the lower margin, less regulated markets to
date, and order books for March, now holding at consistently higher levels
than the Group saw in Q125.

 

However, what the Group has not experienced to date, is any anticipated
catch-up of volumes lost over the course of 2025, particularly in the
regulated markets, which it had previously anticipated to come through in the
run-up to the busier April to June production period. Alongside this, the
Board has made the commercial decision to reduce seasonal promotional activity
in the final quarter.

 

The Group will continue to monitor production volumes and inventory levels
closely, to ensure that ongoing balance sheet efficiency is appropriately
balanced against further trading levels increases.

 

As a result of the above, the Group now expects to generate revenue of c.£150
million and adjusted profit before tax in the range of £9.8 million to 10.2
million for the financial period ending 31 March 2026 ("FY26").

 

Following its restructuring last year, the Consumer Goods division has
returned to growth. Whilst 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.

 

Cost Optimisation Programme

 

The recent completion of the disposal of Billi provides the opportunity to
optimise how the Group operates, rightsizing the business to match demand and
streamlining spending to invest in growth.

 

The Group has commenced a cost optimisation programme based on defined
initiatives, which initially aims to deliver gross annualised savings, before
investments of c.£2 million over the next 18 months. The Company will provide
further details of its progress in this regard as part of the 31 March 2026
results announcement, but tangible results are already starting to be
delivered.

 

Disposal

 

The successful completion of the disposal of Billi was announced on 30 January
2026, generating net proceeds (after estimated closing adjustments) of c.£105
million. This transaction provides an immediate return to balance sheet
strength, leaving the Group with a strong net cash position on completion of
c.£35 million. In the immediate term, the Group has used the net proceeds of
the disposal to repay its existing multi-bank debt facilities, retaining a
smaller undrawn one-bank revolving credit facility of £25 million.

 

The Group continues to be highly cash generative at the operating level, due
to beneficial trading structures with its Chinese OEM customer base. With net
interest costs now significantly reduced (<£1 million per annum; CY25:
c.£7.5 million), Strix will retain more of this cash within the business to
meet strategic investment growth opportunities.

 

The initial £10 million share buyback programme commenced on 4 February 2026.
So far as part of the share buyback programme, 2,993,329 million shares
(c.£1.5 million) have been purchased at an average price of c.48.7p. In the
short-term, the Board continues to review ways of efficiently returning
additional capital to shareholders. A full Capital Allocation Framework will
be announced later in the year as part of a wider strategic update.

 

In connection with the disposal, the Company has agreed heads of terms for a
manufacturing and development agreement, to provide engineering, research and
development support to Billi going forward. This has the potential to result
in a longer-term manufacturing partnership and therefore allow Strix to
benefit financially from Billi's growth under its new ownership. The Company
will be working with Rachel Pallett in her new capacity as the CEO of Billi.

 

CEO update

 

The Company's process to recruit a new CEO, which is being led by Gary Lamb,
Chairman is ongoing and a further announcement will be made prior to Mark
Bartlett stepping down at the end of May 2026.

 

 

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 information contained within this announcement is considered by Strix to
constitute inside information as stipulated under the Market Abuse Regulation
(EU) No.596/2014 (as it forms part of UK domestic law by virtue of the
European Union (Withdrawal) Act 2018). On the publication of this announcement
via a Regulatory Information Service, such information is now considered to be
in the public domain.

 

The person responsible for arranging release of this announcement on behalf of
the Company is Mark Bartlett, Chief Executive Officer.

 

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 and LAICA 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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