London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
The dividend will get this back up soon.
Wonder if we will see a stock buy back by the BoD while the price is cheap. Let them reduce available shares while they increase revenue and profit over 2022.
Considering the head winds and the cash used to get China manufacturing going, the company are in a great position to ramp up so big numbers.
Not necessarily disagreeing with you pernix, I also see value here and joined the party this afternoon.
Just noting that the stock market has a habit of wrong-footing us, meaning most predictions don't age well.
I doubt very much that Chinese OEM's are complying with Western imposed sanctions.
Strix shares are good value. Equity Development are speculating that lost OEM business from Russia will not be covered across other markets. Maybe over cautious. Strix is gaining market share & reasonable to assume they looking at making up any business shortfalls. Who knows when they will reach 370 pence as Liberum broker suggests? All we can do is follow the trends & be rewarded with decent dividends.
Tomorrow morning could see this easily open up, with dividend on the table, buying up and holding is a good strategy to make easy money
"Upwards share trend is my friend"... Just not quite yet, eh?
The preliminary results for Strix Group plc for FY21 were encouraging, with results modestly ahead of consensus expectations with record levels at the revenue and PAT level. Although headwinds continue, leading to pressure on gross margins, management actions have ameliorated the impact of rising input costs and the target of doubling revenues till by 2025 is still on course.
However, we think sanctions on the Russian economy are likely to result in up to a c.£3m hit to revenues in both FY22 and FY23, resulting in a 2% reduction in adj. EPS in both periods. Although Strix does not sell directly into Russia, the Chinese OEMs supplied with kettle controls do. We therefore reduce our fair value / share to 293p, still representing a 22% premium to the current share price.
https://www.equitydevelopment.co.uk/research/exciting-product-pipeline
Looks like the final of the sellers are being cleaned out and autos triggered. Should see consolidation and a move back up to hold for dividend payments.
I would agree tree shake. Strix negatives were all flagged up before results today. So no major surprises. I think investors are comparing before inflation was a problem with every industry. That’s not the case & realisation should reflect the world economics now. I see Germany now cutting economic growth forecasts. That favours defensive growth shares like Strix.
Also the increase in dividend looks very nice.
Great share to load up on and make some free money :)
Yes, 370 pence Liberum target now. All industries are facing commodity price inflation & that lowers their target price from previous I would think.
Results looked decent, and the reduction in cash held is due to investments in new factory which is revenue generating.
Looks like this will bounce, was just a tree shake post results
"Strix rated by Liberum Broker as Buy with 370 pence target price."
You forgot to mention that they have reduced their price target from 460p to 370p.
Krustysmegma: I would say Strix results are decent. Times are changed now as the economic environment adjusts to slower growth worldwide. That means lower sales, profits for most companies going forward & that’s the comparison investors need to make with Strix results.
Net cash generated from activities is affected due to higher commodity costs, energy costs, cost cutting & currency hedging lowering cash returns. That is common with most manufacturing industries except currency hedges.
Then the new Chinese factory did only open only 6 months back & is delivering cost efficiencies but I guess will do more with time. That should pay for factory costs going forward & saves property rental costs too. Strix dividend is up with Board confidence in Strix meeting stated growth targets. Big vote of confidence here. Strix shares should rise as Investor embrace the Spring/Summer months. Liberum brokers still have today 370 pence price target after reviewing Strix results today. I’m buying Strix shares on weekness like today as represents good value with around 4% dividend yield.
pernix, I guess the results were ok but they're not exactly ripping it up are they? The part I don't like, and I suspect is the main reason for the market's negative reaction this morning, is "Net cash generated from operating activities £22.3m
2021/20 £31.2m (-28.5%)
2021/19 £34.4m (-35.2%)"
So for all the hype associated with the new factory in China coming onstream, net cash is down significantly.
On the positive side though, the dividend has increased again which is always welcome, but also a sign of confidence from the Board.
Still looks like testing 200 at some stage though, which of course would make the dividend even more attractive. I won't be adding for now.
To mitigate increasing costs, Strix said: "Strix has successfully implemented price increases on some of its legacy products in both kettle controls and water categories and will also be implementing further increases across the wider range with effect from 1 May 2022, which alongside a range of other efficiency measures and foreign exchange rate and commodity hedging arrangements will help to minimise the impact of any cost inflation."
Strix rated by Liberum Broker as Buy with 370 pence target price.
Strix earnings per share up. That’s a good result.
Adjusted basic earnings per share and adjusted diluted earnings per share were 15.2p (2020: 14.9p) and 14.9p (2020: 14.3p) respectively.
Strix has expanded share of the global kettle controls market further 1% to 56% by value (not to 70% as I said my mistake)
Strix Results today - The negatives of results were flagged up before like commodity inflation & freight inflation. These are common to all companies but Strix has coped well. Strix is hitting medium term growth targets of doubling sales in now 3 years time. Strix turnover up near 30%, profit margins only down slightly suggesting Strix can pass on inflation price rises to customers but still increase company sales. Strix share price is down a lot today but this is likely knee jerk results reaction but under calm scrutiny should bounce back. There are very few companies with near dominant market share like Strix & they increased market share to near 70% (up 1%). I do see inflation as transitory with energy prices coming down in the future as more supply comes on stream. Global economic growth to be lower with lower demand for energy usage as well & lower freight costs. Strix has defensive growth capabilities, people buy kettles as essential safety convenience products in lockdowns & more home working trends globally. As economies slow down people are at home more too. The Italian acquisition is also generating higher sales as successful integration & so was a good decision to buy. No word on new contracts as yet but I think this is pipeline news. Strix is highly cash generative, sales are growing, profits are growing, dividends are up. I would say Strix shares are a Buy & are good value at these levels.
Well next week Strix trading results are out. Strix did stockpile raw materials as commodity prices were up last year. This should offset some commodity price inflation. Customers were paying for higher prices which is good. Additional cost cutting and currency measures should also help. There is inflation everywhere so it's a playing field here. Most important Strix can and are able to push price rises onto their customers which is very key and they have high profit margins which protects them too. Together with geographical spread of markets and some essential products I hope this bodes well for the future. Strix shares are at a discount which means they are good value. Their rising trend should continue with increasing organic sales and newer contracts as stated in the pre-close trading comments only 5 weeks ago.
Strix 300p soon? Swinging up share chart trends now. Share volumes, values rising. That’s a turnaround & Strix trading results next week. Upwards share trend is my friend with shares now rising into 260’s. This should be surpassed more swiftly now.
As yesterday US Federal Reserve wants lower inflation, price stability foremost. Might help lower inflation with oil prices coming off the boil too with other commodities. Now expect lower economic growth worldwide. My previous post was worst case for cyclicals with rampant inflation. If Strix can pass on price increases then better than most. Hope the shares go up as they are now trending upwards. It has been volatile trading across most shares with geopolitics driving sentiment & lots of news flow !
Strix Group plc, the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components will be conducting an investor presentation covering their Full Year results for the year ended 31st December 2021.
The online presentation will be hosted by Mark Bartlett, CEO, and Raudres Wong, CFO.
This event will take place at 11.30am on Thursday 31st March.
The webinar is open to all existing and potential shareholders. Questions can be submitted during the presentation to be addressed at the end.
Sign up here to register: https://www.equitydevelopment.co.uk/news-and-events/strix-fypresentation-31march2022
#KETL Despite macro uncertainties, the sharp decline in the share price of Strix over the last six months is surprising given operational newsflow. The recent trading report highlighted that record revenue and profits had been achieved in FY21, with the latest update underlining the progress made towards the five-year goal of doubling revenues. Our estimates are unchanged.
With several milestones passed and the roll-out of Aurora ahead of budget, the growth in the number of retail listings and secured distribution agreements remains encouraging. With additional launches, such as December’s induction kettle (securing a German design award) we think the outlook remains promising for Strix Group, as reflected in their stated target of doubling revenues in the five years to 2025. We look forward to further guidance on the company’s financials with the announcement of their results towards the end of the month.
https://www.equitydevelopment.co.uk/research/milestones-passed