Successful placing to accelerate deleveraging
Strix has completed a new equity placing initiated by an investor that will raise approximately £8m of proceeds, with the placing shares expected to be admitted to trading on 14 June. The funds will accelerate the pace at which it achieves self-imposed targets on the level of headroom on its key banking covenant. As such, the refinancing of the Group’s banking facility set for 2025 should now be on more favourable terms. The group can now speed up investment in sustainable growth should suitable opportunities arise, while remaining cognisant of the balance sheet.We have slightly reduced our fair value to 167p / share, reflecting the level of adj. EPS dilution. In our view, the Group remains materially undervalued relative to its peers, particularly now its balance sheet has been strengthened.
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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