REG - Strix Group PLC - AGM Statement

StrixAnnouncement

20/06/2024 07:00

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RNS Number : 0236T  Strix Group PLC  20 June 2024

20 June 2024

Strix Group Plc

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

AGM Statement

 

Strix Group Plc (AIM:KETL), the AIM quoted global leader in the design,
manufacture and supply of kettle safety controls and other complementary water
temperature management components, provides an update ahead of its Annual
General Meeting ("AGM") at 9:00am (BST) today at the Company's Head Office,
located at Forrest House, Ronaldsway, Isle of Man IM9 2RG.

 

At the meeting, Mark Bartlett, Chief Executive Officer of Strix, will make the
following statement:

 

"The Kettle Controls market continues to show some promising signs of recovery
as we move into the peak season. Whilst it is too early in the season to
determine whether this uptick is due to stock refill or an ongoing improvement
in consumer demand, the initial indicators are encouraging.

"I am pleased to confirm that Profit before tax for the 2024 full year remains
in line with current market expectations. Additionally, the cash conservation
actions taken in HY 2024 have resulted in year-to-date cash generation for the
Group running slightly ahead of expectations.  This positive trend further
supports an anticipated net debt leverage position of less than 2.0x.

 

"The recent 5% Equity Placing allows the Group to achieve net debt leverage
reduction 4-6 months earlier than originally anticipated, securing an
associated interest saving benefit due to the margin ratchet mechanism
contained within the current facilities.  This earlier leverage reduction
facilitates upcoming discussions and refinancing plans with the Group's
banking syndicate.

 

"It remains the Company's intention to finalise a full refinance of its
banking facilities in 2025 to advance the Group's growth aspirations.
Accelerated deleveraging will enable the Group to expedite its investment in
new technologies, to support longer term growth opportunities while still
delivering on its stated target to reduce net debt leverage to 1.5x by the end
of FY 2025.  Once this debt leverage target has been achieved, the Board
remains committed to maintaining a leverage range of between 1.0x to 2.0x for
the medium term.

 

"Restructuring initiatives continue to be implemented across the Group to
drive profitable growth, support improved efficiency, sustainability and cost
control, whilst securing a suitable platform and resources for our mid-term
growth objectives.

 

"The Group will announce a Pre-Close Trading Update for the six months period
ended 30 June 2024 on 25 July 2024."

 

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

 IFC Advisory Limited (Financial PR and IR)           +44 (0) 20 3934 6630
 Graham Herring / Tim Metcalfe / Florence Chandler

 

The person responsible for arranging release of this Announcement on behalf of
the Company is Mark Bartlett.

Information on Strix

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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