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Another bad buy MAG A NUS
Making a habit of this since Monday.
You shouldn't have sold MEAL then lied about not selling but at least it gave us all a good laugh at your expense on the board and exposed you even further.
Be warned of this ramping lunatic
big** !
Could be a little monster tomorrow, as news is good (and china thing is every day thing, and minor) offset by Billi revenues 2 fold.. :)
some bug buys, and shares being soaked up well.
IMHO
Hi Claire
Just bought in first time - got a general feel for the company
What’s your take on their Heat Pump tech and current revenue from same ?
Nice price to add to my SIPP today. Way overdone. A profitable business with a strong balance sheet. And a decent takeover completed.
Key for me is: "Strix has a strong balance sheet and it has significant financial flexibility for the medium term to navigate headwinds and deploy capital consistent with allocation of capital priorities."
I'm in for a quick recovery to the SP here...today looks like an over reaction
Just picked up a few up for the first time
Firstly: Billi will become more profitable, as Strix can leverage volume production to reduce costs and increase profit margins.
Secondly, Strix can now work to launch Billi into the US Market and Europe, so more revenue streams.
Thirdly, Billi has a lot of patents which now Strix owns.
Fourthly, more homes are updating to energy-efficient water pumps, and this is a massive market
This is now prime takeover territory.
took a punt at 79p seems a good price.seems it has been overdone on results day
working out how much this will now add to the bottom line. Need financial statements for Billi
Very positive and fair update here. Some have lost positions and shorts not sure what they are doing.
doing dd here.
Strix Group Plc (AIM:KETL), the AIM quoted global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, is pleased to announce, further to its announcement on 5 October 2022, that it has today completed the acquisition of Billi Australia Pty Ltd, Billi New Zealand Ltd and Billi UK Ltd (together "Billi").
The news was actually more positive, :)
hence more buying than selling today
Strix Group Plc (AIM:KETL), the AIM quoted global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, is pleased to announce, further to its announcement on 5 October 2022, that it has today completed the acquisition of Billi Australia Pty Ltd, Billi New Zealand Ltd and Billi UK Ltd (together "Billi").
Huge discount, based on what? covid....LOL
Yes bendi, you've quickly picked up on a behavioural affliction of mine, which is loss aversion - a difficulty in finally admitting I made a mistake... and it can of course lead me to average down on stocks I shouldn't.
However (famous last words) I believe this one's different. Strix is obviously not going bust. It's also gotten cheap by any measure for a company with Strix's dominant market share of safety kettle controls.
You rightly note that it can't be the profit forecast that's spooking the markets and yr suspicious mind (by no means meant to be an insult - it's good to have a suspicious mind when investing) naturally turns to a possible undisclosed 'skeleton in the cupboard'. However, I don't think management are keeping tight-lipped and are dishonestly manipulating or withholding information - or if they are, they're not doing a good job judging by the sp - coming so sooN after the covid protests in China, I think it's simply the market speculating v negatively about Strix's Chinese connections.
Myself, I've taken an active optimistic stance re the outlook for China, which is why i've invested in companies like AWE and investment trusts like JCGI and FCCS. Time will tell of course.
New to the BB, been watching Strix for a while
With the Australian acquisition the enlarged group should generate £150M revenue @ 38% GP and net profit of £23M
Servicing £60M plus of debt
They could half the dividend and Strix would still be yielding 5% and at same time paying off debt with the balance saved ?
Certainly starting to looking like an interesting investment
From a quick review of the last couple of years financial statements, this appears to be a classic case of a company wanting to have their cake & eat it, i.e. wanting to be a debt funded growth company whilst at the same time pay big dividends.
They generated operating cashflow of £53m in 2020+2021, £40m of which was spent on investing activities such as buying fixes assets, leaving a net £13m to support future growth.
However, dividend payments across both years totalled just shy of £32m, this was paid for by increasing their net borrowings by £29m. I.e. they've effectively been paying dividends via their RCF.
Now this was fine when times were good, however clearly economic activity has taken a turn for the worse + risks around Chinese operations should have been clear and obvious to management post pandemic. Quite why they decided to make another big acquisition in early October is anyone's guess, however it's added fuel to the fire re. debt.
Personally I don't see how paying the final dividend of around £12m is feasible or sensible in light of a profit shortfall of £4-6m versus expectations just over 2 months ago. Add in the fact their interest costs are likely around £4-5m per annum and in my view they need to suspend it and plough all free cash flow into deleveraging as rapidly as possible. Until they do that I wouldn't consider buying shares here.
Lowest of all time here, lower than pandemic days...based on what? Ha!
Not in ideal, but selling is like suicide
Overdone :)
someone is hovering all the sell shares up.
perfect opportunity for those that bought at the placing of 115 to massively average down.
the acquisition of Billi is a perfect fit for Strix, and now makes them a very exciting takeover target
Wed, 30th Nov 2022
Strix warns of China troubles as it completes Billi acquisition
(Sharecast News) - Kettle safety and water technology company Strix has completed the acquisition of Billi Australia, Billi New Zealand and Billi UK, it announced on Wednesday, as it also warned of trading difficulties amid China lockdowns.
The AIM-traded firm described Billi as a "leading brand", supplying premium filtered and non-filtered instant boiling, chilled and sparkling water systems, with manufacturing based in Australia.
It said Billi had a successful history of growth with, a double-digit revenue compound annual growth rate over the past five years, and "strong" cash conversion."The acquisition materially accelerates Strix's growth plans for its water and appliance categories and provides an entry into the high growth and strategically important hot tap market," the board said in its statement.
Looking at its current trading, meanwhile, Strix said that in recent weeks it had become "increasingly evident" that the disruptive effect of ongoing lockdowns being enforced in China, while relatively short in length, had adversely impacted two of the top five of Strix's major original equipment manufacturer (OEM) customers, with further disruption expected.
As a precaution, Strix said it had reinstated its secondary warehouse to minimise any disruption with its own shipments.
Strix said that as a result of lockdown situations and continued macroeconomic and geopolitical uncertainty, not only in China but across a number of its key export markets, it now expected adjusted profit after tax for the full year to be around £23m.
"The board recognises that these uncertainties could continue into 2023.
"December remains a significant period for the group due to the active trading ahead of the Chinese New Year public holiday when a number of its major customers and suppliers cease operations for a period."
Strix said it would announce a further update on trading on 26 January, consistent with its typical reporting timetable.
"Strix continues to maintain its strong market share position in kettle controls and is outperforming the market in the appliance and water categories.
"In addition, Strix has a strong balance sheet and it has significant financial flexibility for the medium term to navigate headwinds and deploy capital consistent with allocation of capital priorities."
36% fall today on RNS .
Doubled up for 79p Just after midday as it fell back to earlier day low .
In hindsight a mistake topping up with two buys 20th & 21st September @ 144p & 124p.
They did mange to raise 10M in a bookbuild @ 115p on the 5th October just 46 days ago .
The price had gone back to the 124p yesterday falling back from recent high of 128p on 15th November .
'I've risked at top-up at 81.7p because I have a 3-5 year outlook and don't want to accept I've got this one completely wrong.'
--------
The thing is, if you know deep down you made a mistake, then why would you throw good money after bad? I don't believe STRIX has levelled with investors yet. Eg in today's statement:
'. . . anticipates adjusted profit after tax for the full year to be approximately £23m'. NB adjusted profits. If you look at p/y PBT, you will see over the last 4 years £24.13m (2018), £22.88, £25.45m, £21.51m, and now for this year they forecast £23m. So it can't be the profit forecast that's spooking the market as this is hardly a profits warning. So there has to be something else, some other skeleton in the cupboard that they are being tight-lipped about.
We know the shorters got wind of it as early as January, and they've been proven 100% right. So I'd keep a close eye on the shorters now. If shorting increases, you will know there's even more bad news to come.
Doubtful - A second profits warning and China lockdowns.
What happened here. Why down?
This will be 90+ on close.
That's the type of wild unfounded speculation that belongs on the BOOHOO chat board