We expect to see continued market volatility and macroeconomic uncertainty in the UK throughout 2019, not least due to Brexit.
But typically, where there is volatility, there is also opportunity.
While large-cap businesses are generally impacted by macro factors, smaller companies tend to operate in more insulated, niche markets where they are well-positioned and have the ability to react in a more agile manner when facing wider economic headwinds.
One hidden gem we have uncovered is Strix Group, the global market leader in the design, manufacture and supply of kettle controls. Operating in a niche market, Strix has a strong, established position, which it leverages to drive sustainable, high-quality earnings streams.
In addition to an attractive and well-covered dividend, there are exciting growth prospects for Strix in the US, through increasing kettle penetration, and in the adjacent area of water filtration systems through its Aqua Optima product.
Strix Group (LON:KETL), 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.