Strix Group Plc (LON:KETL), the AIM quoted global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, has announced, further to its announcement on 5 October 2022, that it has today completed the acquisition of Billi Australia Pty Ltd, Billi New Zealand Ltd and Billi UK Ltd.
Billi is a leading brand supplying premium filtered and non-filtered instant boiling, chilled and sparkling water systems with manufacturing based in Australia. Billi has a successful history of growth with a double-digit revenue CAGR over the past five years and strong cash conversion. The acquisition materially accelerates Strix’s growth plans for its Water & Appliance categories and provides an entry into the high growth and strategically important hot tap market.
In recent weeks it has become increasingly evident that the disruptive effect of ongoing lockdowns being enforced in China, whilst relatively short in length, have adversely impacted two of the top five of Strix’s major OEM customers, with further disruption anticipated. As a precaution, Strix has reinstated its secondary warehouse to minimise any disruption with its own shipments.
As a result of lockdown situations as described above and continued macroeconomic and geopolitical uncertainty, not only in China but across a number of its key export markets it now anticipates adjusted profit after tax for the full year to be approximately £23m. The Board recognises that these uncertainties could continue into 2023.
December remains a significant period for the Group due to the active trading ahead of the Chinese New Year public holiday when a number of its major customers and suppliers cease operations for a period. Strix will announce a further update on trading on 26 January 2023 which is consistent with its typical reporting timetable.
Strix continues to maintain its strong market share position in Kettle Controls and is outperforming the market in the Appliance and Water categories. In addition, Strix has a strong balance sheet and it has significant financial flexibility for the medium term to navigate headwinds and deploy capital consistent with allocation of capital priorities.