Earnings release
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RNS Number : 0854T Strix Group PLC 30 July 2025 30 July 2025 Strix Group Plc ("Strix", the "Group" or the "Company") Trading Update Strix Group Plc (AIM:KETL), the global leader in the design, manufacture and supply of kettle safety controls and othercomponents and devices involving water heating and temperature control, steam management and water filtration, is pleasedto provide an update on trading for the six-month period ended 30 June 2025. Following a strong Q125 performance, Billiand the Consumer Goods division have seen a good trading performance during the period and achieved growth in line withexpectations, while the Controls division came under pressure in Q225 from geopolitical and macroeconomic uncertainties. As flagged in the Group's FY24 outlook statement, macro-uncertainties, particularly surrounding indirect tariff impacts and aweaker US$, have led to reduced Q225 sales volumes and contributed to order delays in the Group's Controls division. TheGroup has maintained its market-leading position and, as a result, now expects trading volumes to return to a more typical H2weighting, consistent with historical trends. Despite these macro challenges, the Controls division has made meaningful progress in other areas. The new NextGeneration control production line in Strix's Chinese facility has been successfully completed, and the launch to market hasbeen well received, with Next Gen controls now confirmed in new products at several of the Group's partner OEMs. Asdemonstrated by the launch of the Low Cost and Next Generation controls, new product development within the Controlsdivision is focused on delivering solutions that can expand into additional market segments, defend against copyistmanufacturers and increase Strix's overall addressable market. As stated in the Group's FY24 results, Strix's direct sales into the US are limited to c. £7.0m within the Controls division,with no material sales from Consumer Goods and none from Billi. Billi continues to perform strongly, maintaining its double-digit growth rates as it gains further traction with customers acrossits key target markets. This includes strong sales growth in Europe and Southeast Asia, reflecting the success of its ongoinggeographical roll-out strategy. In its largest market, Australia, newly launched products in H224 and H125 have been wellreceived and continue to gain momentum. The Consumer Goods division has performed well, returning to solid growth in the period, following a successful restructurein 2024. Product manufacture in China for its leading global baby brand customer continues to be rolled out and additionalproducts have been launched in the period as expected. The net debt position continues to be a key priority for the management team. However, in line with seasonality and due tothe Q225 macro-driven volume reductions in the Controls division, net debt has increased during the period. Strix hascontinued to manage cash generation and conservation to mitigate the impact of this and will work to return the net debtposition to within the Group's stated appetite of 1.0-2.0x as soon as possible (FY24: 1.87x). The Group confirms that a competitive refinancing process has been formally initiated to provide cost effective and flexiblefunding to support the Group's medium-term investment-driven growth aspirations. These aspirations will be furthersupported by the completion of the repayment of the term loan used to finance the Billi acquisition in 2022. Strix has beenpaying approximately £14.0m on an annualised basis in cash to satisfy this term loan and the final repayment is due inNovember 2025. Despite macroeconomic challenges, Strix has continued to drive its medium-term growth strategy, implementing measures tomitigate and minimise the largely uncontrollable impacts of global market volatility. The Group remains focused onmanaging its cost base and debt position, while balancing investment decisions through the economic cycle, furthersupported by the completion of paying down the Billi debt and the refinancing exercise. Strix remains well placed tocapitalise on a recovery in end markets. Notice of Results The Group expects to report its Interim Results for the six-month period ended 30 June 2025 on 30 September 2025.Management will be hosting a briefing for equity analysts on the day of results, for further details, please email:strix@gracechurchpr.com. For further enquiries, please contact:
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Strix Group Plc +44 (0) 1624 829829Mark Bartlett, CEOClare Foster, CFO Zeus (Nominated Advisor and Joint Broker) +44 (0) 20 3829 5000 Nick Cowles / Jordan Warburton (Investment Banking)Dominic King (Corporate Broking) Stifel Nicolaus Europe Limited (Joint Broker) +44 (0) 20 7710 7600Matthew Blawat / Francis North Gracechurch Group (Financial PR and IR) +44 (0) 20 4582 3500Heather Armstrong / Claire Norbury Information on Strix Founded in 1982, Isle of Man based Strix, is a global leader in the design, manufacture and supply of kettle safety controlsand 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. Kettlesafety controls require precision engineering and intricate knowledge of material properties in order to repeatedly functioncorrectly. Strix has built up market leading capability and know-how, expanding into complementary products and technologies. TheGroup's brands include Aqua Optima, LAICA and Billi providing our customers with market leading water solutions on aglobal basis. Strix is quoted on the AIM Market of the London Stock Exchange (AIM:KETL). This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END TSTEAFXNAEXSEAA