reports
- David O'Brien
Billi drives top line growth
Positives emerged, particularly in H2, as the recovery commenced within the kettle controls market. Billi was the architect of the revenue improvement, with LAICA also delivering a double-digit increase in the top line. Margins improved, notwithstanding a change in the mix. Encouragingly, investor concerns on debt were allayed with the careful management of cash, and latterly as bankers raised the net debt/EBITDA covenant to 2.75x. With further emphasis on costs and cash conservation and a lik...
- Andy Hanson
Strix (KETL LN) - FY23 results, forecasts rebased
Strix has reported FY23 results to 31 December 2023 with adjusted PAT of £20.1m, in line with our updated forecast and company guidance provided in January. Revenue grew 35.2% to £144.6m, benefitting from the full year inclusion of the Billi acquisition, albeit slightly below our forecast of £151.0m. Its core Kettle Controls division also performed robustly, growing 2.7%, ahead of the broader market and indicating market share gain. Recent acquisitions have noticeably improved the Group’s growth...
- Andy Hanson
Audio Note: Strix - FY23 trading broadly in line, new CFO
In this audio note, Zeus’ Andy Hanson summarises the investment case for Strix. Strix has released a pre-close trading update for its full year results to 31 December highlighting adj. PAT will be £20.1m on a reported basis and £20.6m at constant currency. Listen to the audio note below, and read the full research here.
- David O'Brien
Strong H2 cash flow
There are several encouraging messages which jump out from Strix’s trading update released today, led crucially by the strong cash generation during H2. This has enabled the Group to come in below the year end banking covenant test, thereby removing significant risk from the rating. In addition, the strong performance of Billi and LAICA has largely offset the slower than expected recovery within the regulated kettle controls market, resulting in FY23 numbers modestly below expectations at the ad...
- Andy Hanson
Strix (KETL LN) - FY23 trading broadly in line, new CFO
Strix has released a pre-close trading update for its full year results to 31 December highlighting adj. PAT will be £20.1m on a reported basis and £20.6m at constant currency. This is broadly in line with Zeus estimates and company guidance of £21.0m. Importantly, the operational performance by the Group, particularly in H2, has resulted in year-end net debt of c. £83.7m (2.15x EBITDA). This is within its debt covenant agreement of 2.5x and better than the Zeus forecast (FY23: £86.9m). Whilst t...
- David O'Brien
Temporary relaxation of covenants
Strix has issued a brief statement that should ease investors’ concerns in the short-term. The Group’s consortium of lenders has agreed to temporarily ease its key banking covenant (net debt/EBITDA) from 2.25x to 2.5x at the Q3 period end, reverting to 2.25x in December. The Board has also confirmed the timing of the payment of the interim dividend of 0.9p / share on 29 December. Finally, the announcement reported the wish of the CFO, Raudres Wong to retire from the Group, effective immediately....
- Emily Liu
Hybridan Small Cap Feast 27/10/2023
Dish of the day Joiners: No joiners today. Leavers: No leavers today. What’s cooking in the IPO kitchen?** Announced ITF 2 October: Adsure Services, the holding company for TIAA Limited, a specialist business assurance provider operating across the Housing, Healthcare, Government, Education, Charities, and other sectors in the UK, intends to join the Access Segment of the AQSE Growth Market. Admission expected on 30 October. Tekcapital announced intention to spin off and IPO on 2 October: MicroS...
- Andy Hanson
- David O'Brien
Recovery slow, new strategy in place
After early signs of green shoots during Q2, what is clear is that customers are mindful of conserving cash – ordering frequently but in lower volumes. As such and notwithstanding a very positive maiden H1 contribution from Billi, profitability has declined. The Board’s response includes a fine-tuning of strategy, focusing on the most promising new products, cross-selling between brands, distribution agreements in new territories, online product launches and adjustments to the Group’s capital al...
- Andy Hanson
Strix (KETL LN) - Interim results & CMD
Strix has announced interim results for the six months to June showing revenue up 28.6% to £65.2m. The strong top line growth, driven by its 2022 acquisition of Billi, has resulted in gross profits rising 22.6% to £23.9m. Excluding Billi, revenue was down c. 14% yoy. Following updated guidance in today’s announcement, along with its Capital Markets Day, we adjust our forecasts to reflect the slower than anticipated economic recovery along with the impact rising interest rates have had on profita...
- David O'Brien
Encouraging AGM update & Investor Day insights
The AGM update was encouraging and indicated that ‘green shoots’ continued to emerge, with momentum building during Q2 as the frequency of orders increased. Volumes, however, have yet to pick up, suggesting OEM customers are maintaining inventories and conserving cash. Significantly, the Group is seasonally H2 weighted with September to November critical months ahead of Christmas and Chinese New Year. Strix continues to trade in-line with market consensus (PAT of £25.8m) and as such, we see no r...
- Andy Hanson
- Andy Hanson
Audio Note: Strix - FY22 results in line; early signs of recovery in C...
In this audio note, Zeus’ Andy Hanson summarises the investment case for Strix. Strix has reported adjusted post tax profit in line with guidance, provided back in November, at £23.0m. Listen to the audio note below, and read the full research here.
- Liberum Research Team
- Liberum Research Team
- Edward Maravanyika
LIBERUM: Strix Group - FY22 in line, nascent signs of Controls bouncin...
Strix presented FY22 results that were in line with January 26th trading update at the PAT and Net Debt level. Revenue and EBIT were slightly weaker than consensus while total FY22 DPS came in at 6p/share vs consensus 6.5p/share as mgmt. opting to prioritise repayment of debt. Shares up 7% on the results as market encouraged by the outlook statement that highlighted green shoots of recovery emerging in China/Kettle Controls in early part of FY23 after a tough FY22, with OEM capacity utilisation ...
Hybridan Small Cap Feast - 29 Mar 23
29 March 2023 @HybridanLLP Status of this Note and Disclaimer This document has been issued to you by Hybridan LLP for information purposes only and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. This document has no regard for the specific investment objectiv...
- Liberum Research Team
- Liberum Research Team
- Andy Hanson
Strix (KETL LN) - FY22 results in line; early signs of recovery in Con...
Strix has reported adjusted post tax profit in line with guidance, provided back in November, at £23.0m. Revenue of £106.9m is down 10.5% yoy and broadly in line with the Zeus estimate of £110.0m. The decline in revenue is a consequence of destocking across the supply chain in the Controls division. Both the Appliance (+1%) and Water (+8%) divisions showed organic growth yoy whilst benefitting from the addition of the Billi acquisition that completed at the end of November. Importantly, in terms...
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