Full steam ahead
Strix has published its prelims which are slightly ahead of market expectations despite a backdrop of global disruption caused by COVID 19. Net sales fell just 2% YoY, with no impact on net profits on the back of strong cost management. The progressive dividend policy has been maintained. Encouragingly, FY21 profit expectations are well underpinned from a diversified base and while the shares are already up materially YTD the Strix story remains compelling.Upgrade potential from LAICA acquisition. This €31.6m bolt on deal makes sense strategically and is already delivering. Synergy benefits could yet be material, with the cross-selling of Aqua Optima and LAICA’s established product range.
Investment case. The share price has rallied very strongly up from its March ‘20 lows (at the nadir of COVID market anxiety). Strix has reassured investors of both its defensive qualities, but also of its ability to deliver growth through both its water and appliances categories, as well as a strong commitment to ESG principles driving both product development and best practice. Strix remains a unique strategic asset on AIM, with industry leading margins.
Strix Group is a holding company. Through its subsidiaries, Co. is engaged in the designing, manufacturing and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration. Co.'s core products are kettle safety controls, which are responsible for disconnecting the power to the heating element when either water has boiled, operated with no water present, or in some products when the kettle is lifted off its base.
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