Strix, Mark Bartlett, Chief Executive Officer, said:
“We are pleased to report a solid six months of trading for Strix in 2018. We have made positive progress with our strategic priorities, continued to invest in the growth of our business and maintained our global market share.
The global market has remained positive with an overall volume growth of c.6%. The North American market has been particularly strong, growing at >20%. As anticipated the China domestic market also experienced a positive recovery with volume growth of c.6%.
We have continued to invest in our facilities, through innovation, additional automation and lean manufacturing processes, resulting in a further 6% increase in efficiency.
Product development remains a core focus of the Group with positive progress on the U9 series of controls. We have secured a number of collaborations with key brands within the hot water and coffee on demand categories using our mature, patented heating technology to fulfil key consumer insights identified from independent research.
Aqua Optima continued to show strong growth with revenues up c.88% versus prior year securing a record share within the UK of >20% and increased distribution with the Aqua Optima brand now available in an additional 2,500 outlets.
We continue to build on our extensive customer relationships across the value chain whilst further developing our key technologies and seek to identify further incremental opportunities, both organic and inorganic, to drive shareholder value.
With trading in line with full year expectations, we look forward to the rest of 2018 with optimism and are delighted to announce an interim dividend of 2.3p per share.”
Strix Group Plc (LON: KETL), the AIM listed global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, today announced its unaudited interim results for the six months ended 30 June 2018.
FINANCIAL HIGHLIGHTS
· A solid first half performance and trading in line with full year market expectations
· Revenues of £42.9m (H1 2017: £42.2m), increase of 1.5%
· Gross profit margin increased to 37.9% (H1 2017: 37.2%)
· Adjusted EBITDA (1) of £14.8m (H1 2017: £14.2m), increase of 4.3%
· Adjusted EBITDA (1) margin of 34.5% (H1 2017: 33.6%)
· Adjusted PBT (1) of £11.0m (H1 2017: £11.2m), decrease of 1.9% due to net finance costs of £0.9m (H1 2017: £nil)
· Adjusted diluted EPS (1) of 5.3p, with adjusted PAT (1) of £10.6m (H1 2017: £11.0m), decrease of 3.5% due to timing of tax accrual vs prior year
· Decrease in net debt to £37.9m (2017: £45.9m), improvement of 17.4%
· Net cash generated from operating activities £15.2m (H1 2017: £15.4m), decrease of 0.9% due to working capital movements
· Interim dividend of 2.3p per share to be paid on 26 October 2018
OPERATIONAL HIGHLIGHTS
·Global market share maintained at c.38% by volume
·Successful launch of U9 with >1.1m controls produced
·Production efficiency increased by 6% due to continued automation and 16% increase in quality ppm
·Settlement of an infringement claim for 19 electronic appliances in China to defend IP
·Aqua Optima sales up by c.88% in H1, with record market share of c.20% achieved
1 Adjusted results exclude exceptional items, including share-based payments. Adjusted results are non-GAAP metrics used by management and are not an IFRS disclosure.
The comparative results are presented on the same basis as set out in the Group’s 2017 Annual Report, and cover a period when a different capital structure was in place and the Company was not listed on AIM.
