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:
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Strix Group Plc
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+44 (0) 1624 829829
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Mark Bartlett, CEO
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Clare Foster, CFO
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Zeus (Nominated Advisor and Joint
Broker)
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+44 (0) 20 3829
5000
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Nick Cowles / Jordan Warburton
(Investment Banking)
Dominic King (Corporate
Broking)
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Stifel Nicolaus Europe Limited
(Joint Broker)
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+44 (0) 20 7710 7600
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Matthew Blawat / Francis
North
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IFC Advisory Limited (Financial PR
and IR)
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+44 (0) 20 3934 6630
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Graham Herring / Tim Metcalfe /
Florence Chandler
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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).