The latest Investing Matters Podcast episode featuring financial educator and author Jared Dillian has been released. Listen here.
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Not before time indeed!
Inexplicable this is still trading below its Covid low. Only a matter of time before the full re-rate comes.
Not before time!
Some moment today, hope it keeps moving up.
Hope to god the don’t, this share would crash! And we don’t need another war.
Strix Group plc, the AIM quoted global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, conducted an investor presentation covering their Full Year results for the year ended 31st December 2022.
Mark Bartlett, CEO, and Raudres Wong, CFO ran investors through key highlights of the year and a detailed financial review, including an update on the transformational Billi acquisition and an in-depth look at each of the company's business categories. Management also answered a wide range of questions asked by the viewing audience.
If you missed the live event, you can watch the full video recording below, that has been divided into chapters for ease of viewing.
0:00:36 Introduction by Mark Bartlett, FY22 highlights
0:04:48 Kettle Controls green shoots, update on Billi, capital allocation
0:11:15 Financial review
0:23:28 Business Categories
0:34:25 ESG & Outlook
0:39:03 Questions & Answer session
Link to video: https://www.equitydevelopment.co.uk/research/strix-group-investor-presentation-final-results-march-2023
Don’t know, but added a few at 94p but will sell these at 100 ish. Many of my other shares are also down so I’m hoping just general market, long weekend probably doesn’t help, traders getting out (4 days is a longtime in this volatile market).
Any ideas what happened today - I thought we were consolidating on positive news!!
Great zoom meeting this morning, some good information given on current and new products. Mark Bartlett, seems to be across the business. Hopefully keeps around this price until new tax year!
Don’t forget the tune in to tomorrow’s zoom call.
Great post - still a good future hear and a good current price!
Investprs Chronicle on-line today - https://www.investorschronicle.co.uk/ideas/2023/03/29/green-shoots-for-this-stock-after-2022-s-perfect-storm/?xnpe_tifc=OFB_hIYdbfxpOIPsOFV749psafeWaeiWhFW5adLcbue3aG8Lbj43nkPlbdicauU.EG8.adJSOFYdhFzJxkH84.PL4DxpO1TT&utm_source=exponea&utm_campaign=Investment%20Daily%20Email%2030%20Mar%202023&utm_medium=email
Final para - "So, having rated the shares a hold at the interim results (‘Strix’s profits boil dry’, 21 September 2022), I feel the high-yielding shares now rate a recovery buy."
Still a way to go to reach my average, but also hope it's a reset from here.
UH, I agree that they went too fat too fast, I hope lessons learned (I know they’ve stated that, hope they keep to that). Get debt down and keep a reasonable div policy. I’m hoping in a year I’ll be glad adding more this morning (avg slightly up), but future yields at this price, looks very attractive.
Thats a fair point - but an increasing sustainable dividend from a rebased dividend will still be a decent yield. Share price has fallen too far. Im a buyer
Final divi savagely cut following their acquisition spree though....
I've been buying these over the past year - my first purchase was 300 shares at 159 , and I've now 7500 at just over 116 - as usual I started buying too soon but I'm reading the results and confident there's upside here
With FY22 now firmly in the rear-view mirror, Strix Group plc is looking forward with more optimism. China is re-opening for business following several COVID-related lockdowns and green shoots have begun to appear. Sales to OEMs have seen a substantial improvement in run-rates during the first two months of FY23 and, while a swallow does not make a summer, we see positive signs, not least the possibility that a recession may well be averted in Western economies. A combination of product launches, the acquisition of the high margin Billi and a cross fertilisation of sales between the consumer brands augurs well for FY23.
We expect FY23 to represent an inflection point for the Kettle Controls business. In the YTD, green shoots have appeared, with sales to OEMs rising 18% versus Q4 (which represented a low point in FY22). As COVID-related restrictions have been lifted in China, we expect revenues to improve further as bottlenecks are removed and trading returns to normal patterns. A combination of product launches within Water/Appliances/Billi, new listings (online and retail), and a cross-fertilisation of sales within the wider consumer areas is expected to result in strong growth in revenues and profitability.
Our comparative valuation models suggest that Strix Group is trading on the lowest FY1 EV/EBITDA and PER multiples within its peer group. Our fair value estimate of 216p/share is backed by a conservative DCF model and represents a significant uplift on the current share price. Even following the dividend cut, the FY1 yield amounts to 7.1%, with dividend growth slowing to reflect a desire to reduce indebtedness (we estimate the net debt/EBITDA ratio declining to 1.8x in FY23).
https://www.equitydevelopment.co.uk/research/green-shoots-now-visible
TGM, yes my avg is just under 90p, so more I think about it, a dog sale first thing and get the dog back in the new ISA year, the dog is Direct line!
I topped up yesterday afternoon and I've not seen anything in the results to stop me buying again this morning
Quick scan seems ok to me nothing unexpected, the cut is less than I thought happy with the final div, that’s just over 3.5% on yesterday’s price. May sell dog and put it in here, if a drop today!
“ As capital allocation decisions prioritise debt reduction, the Board is proposing a final dividend of 3.25p per share (2021: 5.60p) which would represent a total dividend of 6.00p per share (2021: 8.35p).”
SLove, wouldn’t mind a div cut, as long as it puts the company on the road of recovery, the market may also see it as a positive move. Oh well few hours to go, if there’s weakness hopefully it stays down for the new ISA allowance!
We are anticipating a big divi cut, so maybe the market is anticipating this to be severe. Also maybe manufacturing has been disrupted so to what extent against market forecasts? That’s the gamble. Like you Morbox I would top up but have an uneasy feel re tomorrows numbers. I hope I’m wrong. Let’s wait and see
Hopefully, some positive new tomorrow. Tempting to add more but a bit nervous. Anyway if some bad news it should be all out, then onwards and upwards.
Just under 93p now .
After my slice below 26th January 100p they topped out at 105p 6th February 2023.
Falling back to 96p 14/2/23 then back up to 103p by 27th before falling gradually back to this 93p last seen day before that 10% rise before the RNS 10% rise .
Roland Head ( Motley ) 2 penny stocks I’d buy now for the next bull market
Sun, 19 March 2023
A market-leading business
My next pick is kettle control maker Strix (LSE: KETL). This little-known business is the world’s largest producer of kettle safety controls — the part that makes your kettle switch off when it boils.
It has market share of about 50% for these parts. This reflects its trusted relationships with many manufacturers. The only problem with this is that it doesn’t leave much opportunity for growth.
To try and solve this problem, Strix has been buying up small companies in related areas, such as hot water taps and water filtering. The company has also built a new factory in China
Unfortunately, these moves have left the company with quite a lot of debt. The group’s financial situation was also madeworse by supply chain problems and Covid disruption in China last year.
A dividend cut is also expected in this month’s results, although broker forecasts suggest the stock could still yield 6%.
I’m not sure whether Strix’s recent acquisitions will ever be as profitable as its core business. One risk, in my view, is that some of this spending will eventually be written off.
However, I am encouraged by a recent change of tone from the company’s management. In an update in January, Strix said that was not planning any further acquisitions or factory builds.
Instead, the company wants to return to its “core operating model” of being highly cash generative.
If chief executive Mark Bartlett can deliver on this promise for shareholders, I think the shares could be cheap at current levels. If I was looking for a small-cap value stock to buy today, I’d certainly consider Strix.
Strix Group plc, the AIM quoted 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 2022.
The online presentation will be hosted by Mark Bartlett, CEO, and Raudres Wong, CFO.
This event will take place at 10.00am on Friday 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 to register here: https://www.equitydevelopment.co.uk/news-and-events/strix-fypresentation-31march2023