Strix Group - regulated markets still difficult, costs being addressed
Strix Group’s trading update includes some emerging positives: volumes continue to build, particularly in less‑regulated control markets, growth has returned to Consumer Goods, and the recent disposal of Billi has transformed the balance sheet, leaving the group with net cash and capacity for shareholder returns.However, activity levels in the higher‑margin regulated segment are recovering more slowly, and the combination of softer revenue expectations, a lower‑margin mix and rising commodity prices leads to reduced estimates. Management has reinforced its cash‑conservation focus and implemented further cost‑reduction measures, while notifying customers of upcoming price increases.
Given the operational uncertainty, we continue to base our fair value assessment on the estimated NAV of 62p per share.
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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