Strix Group PLC Pre-Close Trading Update (6900N)
January 22 2019 - 2:00AM
UK Regulatory
TIDMKETL
RNS Number : 6900N
Strix Group PLC
22 January 2019
22 January 2019
Strix Group Plc
("Strix" or the "Group")
Pre-Close Trading Update
Another solid performance with strong cashflow driving lower Net
Debt
Strix Group Plc (AIM: KETL), the AIM listed global leader in the
design, manufacture and supply of kettle safety controls and other
complementary water temperature management components, is pleased
to announce the following trading update for the year ended 31
December 2018.
Strix has delivered a strong performance across the Group during
2018 and the Board confirms that it expects to report results in
line with market expectations for the financial year. The Board
also expects to report a net debt position of c.GBP28 million.
Whilst 2018 has seen significant volatility caused by
geo-political events including Brexit, USA/China and USA/Turkey
trade tensions, the global kettle market still posted growth of
c.7% with strong progress in North America, Russia and South East
Asia offsetting softening in Europe, the UK and Turkey.
During the period, the Group maintained its global market
leading share of the kettle controls market at c.38% by volume with
the U9 series of controls supporting growth in less regulated
markets and ongoing strong performance in the USA offsetting a
slight softening within the China domestic market.
The Group's Aqua Optima brand has experienced another strong
year of growth following a re-positioning of the brand in the UK
market and an increased presence at multiple retailers. The brand
has entered into new collaborations, including with Parkrun and
TerraCycle, in order to further increase consumer reach and brand
recognition. As a result, Aqua Optima has increased its combined
brand and private label volume share to over 25% of the UK market.
The Board continues to search for new differentiated technologies
to enhance the product portfolio in Aqua Optima to drive future
growth and support expansion outside of the UK.
The Group has continued to progress the relocation of our
manufacturing operations in China in the second half of the year.
An appropriate site has now been identified near our existing
facility and the Group is in the process of finalising an agreement
to purchase the land with the local government in the district in
which the site is located. The Board anticipates factory
construction will begin in the second half of 2019 and will take
approximately two years to complete. A further update and guidance
will be given with the full year results.
Further successful Intellectual Property protection initiatives
have also been undertaken to both enforce the Group's patent rights
and, where they have expired, utilise other legal redress such as
copyright to take legal action against those that seek to copy its
products in order to protect the Group's revenue streams. The Group
will continue to vigorously defend its patent position to ensure
that consumers, its customers and its brand are protected.
Given the Group's performance in 2018 and the Board's confidence
in the continued strength of its cash generation, the Board
re-confirms its intention to pay total dividends of 7.0p per share
in respect of the 2018 financial year, inclusive of the 2.3p per
share paid as an interim dividend.
The Group will be announcing its results for the year ended 31
December 2018 on Thursday 21 March 2019. An analyst briefing will
be held on the day in the City of London. Analysts interested in
attending should contact heather.armstrong@investor-focus.co.uk or
+44 (0)20 3934 6630.
Mark Bartlett, Chief Executive Officer, said:
"Strix has achieved another strong performance in line with
market expectations. In particular, cashflow generation has been
strong which has helped achieve an improved net debt figure, ahead
of market expectations.
"We have maintained our strong global market position in the
face of a competitive market environment, and have been largely
unaffected by the uncertainty caused by Brexit and US trade tariffs
as a result of our diverse global presence. We have also taken
appropriate actions to mitigate future supply risks.
"As a result, we look forward to the year ahead with confidence
and have put in place the foundations to achieve our objectives for
2019."
Enquiries:
Strix Group Plc +44 (0) 1624 829 829
Mark Bartlett, CEO
Raudres Wong, CFO
Zeus Capital Limited (Nominated Advisor
and Joint Broker) +44 (0) 20 3829 5000
Nick Cowles / Jamie Peel / Jordan Warburton (Corporate Finance)
Canaccord Genuity Limited (Joint
Broker) +44 (0) 20 7523 8000
Chris Connors / Michael Reynolds
IFC Advisory Limited (Financial PR
and IR) +44 (0) 20 3934 6630
Graham Herring / Tim Metcalfe / Heather
Armstrong
ABOUT STRIX GROUP PLC
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 listed on the Alternative Investment Market of the
London Stock Exchange (AIM: KETL).
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END
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