TIDMKETL
RNS Number : 0560G
Strix Group PLC
22 July 2021
Strix Group Plc
("Strix", the "Company" or the "Group")
Pre-Close Trading Update and Notice of Results
Strix Group Plc (AIM: KETL), the global leader in the design,
manufacture and supply of kettle safety controls and other
complementary water temperature management components, is pleased
to announce a trading update for the six month period ended 30 June
2021.
Trading Update
The Group has experienced positive trends and momentum in H1
2021 and will deliver revenue growth of circa 50%, including the
impact of LAICA, compared to the COVID-affected prior year and
remains confident that it will deliver revenue growth of circa 30%
for the Group in 2021.
The kettle controls category continues to perform strongly,
particularly within the regulated segment and a positive order book
gives management confidence for the second half of 2021 and
beyond.
Strix has also successfully implemented price increases on some
of its legacy products in both kettle controls and water
categories, alongside a range of other efficiency measures which
will help to minimise the impact of any cost inflation. Gross
profit margin for H1 2021 remains in line with management's
expectations and the Company will provide additional financial
guidance for H2 2021 in its interim results in September.
In the water category, the sales of its new products are
accelerating with additional product launches from LAICA that have
already been implemented during the period.
The Group also continues to see many of the new appliances
starting to penetrate the consumer markets across the world. The
Aurora appliance launched on Amazon under the Aqua Optima brand in
June and a version incorporating Strix's technology has recently
launched, initially in Asia, with a leading global brand.
The HaloPure technology is gaining wider recognition by the
market and, in addition to securing two contracts at a regional
government owned livestock company in China, the Group has reached
an agreement with a leading global company of poultry feeding
systems to mutually promote the HaloPure product and any relevant
technical support in the Chinese market. This provides further
confidence that the Group will secure 10 installations this
financial year, which demonstrates the continued focus on
commercialising this important product.
Corporate and Operational Review
The new manufacturing operations in China continue to make
excellent progress and remain on target and budget to be fully
operational by August as originally scheduled. 90% of the assembly
lines have now been moved and the commencement of the production
lines have begun successfully. The Company is particularly proud of
this achievement to date given the backdrop and impact of the
global pandemic.
Strix's experienced management team continues to ensure that the
integration of LAICA is executed effectively to capture identified
synergies in line with its strategic plan. The LAICA trading
performance in the first half of 2021 has also been strong
delivering greater than 20% revenue growth. The Company will
provide additional financial guidance at its interim results.
The Group continues to invest in strengthening its management
team in line with its strategic objectives and has recruited a new
Chief Technology Officer ("CTO") with significant expertise in
project planning and the successful implementation of
commercialisation strategies to bring high quality and innovative
new products to market in a timely and cost effective manner. This
appointment will be an invaluable addition to support Strix's new
product development initiatives which is an important part of the
Group's medium-term growth ambition. The new CTO will be joining in
November.
Strix has committed to implementing a sustainability strategy in
2021 and establishing baselines within identified key sustainable
development goals that will enable the Group to track improvements
year on year. Strix will publish these short-term key performance
targets, incorporating the benefits of the new factory in China, in
its interim results in September.
Financial Position
Strix remains in a strong position to continue to deploy capital
consistent with its allocation of capital priorities and is focused
on investing in compelling growth opportunities, in particular on
new product development and commercialisation strategy that
supports the medium-term growth ambition of the Group. In addition,
the Company continues to seek acquisition opportunities of niche
technologies that will add value across the Group.
Net debt (excluding the impact of IFRS 16 lease liabilities) as
at 30 June 2021 is GBP51.6m.
Notice of Results
The Group will be announcing its interim results for the six
month period ended 30 June 2021 on 22 September 2021.
Mark Bartlett, Chief Executive Officer, said:
"Overall, I am confident that the positive trends in current
trading and momentum so far in H1 2021 mean that we anticipate
delivering revenue growth of circa 30% for the Group in 2021 which
also underpins our confidence in achieving our medium-term target
to double the Group's revenues over the next five years."
For further enquiries, please contact:
Strix Group Plc
Mark Bartlett, CEO
Raudres Wong, CFO +44 (0) 1624 829829
Zeus Capital Limited (Nominated Advisor
and Joint Broker)
Nick Cowles / Jamie Peel / Jordan Warburton
(Corporate Finance) +44 (0) 20 3829 5000
Stifel Nicolaus Europe Limited (Joint
Broker)
Matthew Blawat / Francis North +44 (0) 20 7710 7600
IFC Advisory Limited (Financial PR and
IR)
Graham Herring / Tim Metcalfe / Florence
Chandler +44 (0) 20 3934 6630
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 is admitted to trading on the AIM Market of the London
Stock Exchange (AIM: KETL).
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