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, will be hosting a virtual Capital Markets Day starting at 14:00 GMT today to provide an update on its medium-term strategy and current trading.
Medium-term strategy update:-
– The Board expects to double Group revenues over the next five years primarily through organic growth in its Water and Appliances categories;
– Continue to grow market share in Kettle Controls;
– Invest in compelling growth opportunities with particular focus on new product development and commercialisation strategy that support the medium-term growth ambition; and
– Execute on ESG commitments to provide a safer sustainable future for its customers.
Update on current trading:-
– Strong order book visibility for December now underpins Board’s confidence that 2020 profitability for the Group (excluding the impact of the LAICA acquisition) will show modest growth versus prior year;
– Record sales since June have been driven by replenishment of pipe-line stock and a better than expected seasonal uplift;
– Buffer stock implemented to minimise any disruption during Brexit negotiations and all manufacturing locations remain fully operational; and
– Adjusted net debt remains in line with expectations and the Group has a strong liquidity position.
Despite the unprecedented global macroeconomic disruption caused by the COVID-19 pandemic, the Group is robust and, as a market leader with a global footprint, remains highly confident in its future prospects. Strix’s investment proposition is underpinned by:-
– High quality, resilient and robust business model which benefits from geographic and product diversification;
– Continued focus on efficiency measures and strategic initiatives to manage its highly variable cost base and prudently invest in compelling growth opportunities;
– Conservative balance sheet and low leverage provides financial flexibility for the medium term to navigate headwinds and deploy capital consistent with allocation of capital priorities; and
– Progressive dividend policy linked to underlying earnings has been maintained reflecting Board’s confidence in the outlook for the Group.