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Started: EquityDevelopmen, 12 Jun 2024 08:54
Last post: EquityDevelopmen, 12 Jun 2024 08:54
Link to note: https://www.equitydevelopment.co.uk/research/successful-placing-to-accelerate-deleveraging
Strix has completed a new equity placing initiated by an investor that will raise approx. £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.
Please note, that the research note is “ Non-independent and categorised as Marketing Material”
The market likes it. ATM!
Sorry 5% not 4. At was getting late last night. Only reason I’m a bit disappointed is that they already had a plan in place, however on reflection is seems a great positive for the company as it was an existing investor that came to them with the offer, so someone has a lot of faith. I posted on the 27 of March that the BOD should consider a raise to deal with debt. Anyway let’s see what the market thinks today. I’m going to increase my hold by 10%.
Started: Tinkytown, 11 Jun 2024 12:05
Last post: Morbox, 11 Jun 2024 22:29
This RNS is a bolt out of the blue. A bit disappointed really. 4% diluted but at least no discount I suppose.
Not been in Strix since before the opening of their new factory, this was supposed to turbo charge their growth along with the SP and yet here they are at 80p.
With the cancellation of this year's dividend and the Kettle control division improving, I'd maybe suggest the bad news is priced in.
Is there a danger the board will want to reduce debt leverage further in 2024 and still pay no dividend?
At 80p and a dividend of 0.9p that is an 11% yield, the future certainly looks bright.
Last post: Morbox, 30 May 2024 09:08
Cheers Cheers for the link, been here since 2022 and added loads on the drop. Very happy to hold this under the radar company. Good interview, could have done without the personal stuff !
Good interview on All Points West podcast:
https://www.allpointswestpod.com/episodes/brewing-success-ceo-mark-bartlett-on-strix-groups-global-impact-on-kettle-safety-and-water-filtration
Started: Morbox, 16 Apr 2024 07:59
Last post: CVB123, 16 Apr 2024 20:27
CEO buying £50k worth of shares suggests he has confidence in Kettle Controls returning to pre-Covid sales. If that happens and Billi continues on its current path, we should expect faster deleveraging which should benefit the shares.
Nice to see a director buy, and happy that the market also thinks the board has done the right thing by cancelling the div.
Started: EquityDevelopmen, 3 Apr 2024 11:08
Last post: EquityDevelopmen, 3 Apr 2024 11:08
Mark Bartlett, CEO, and Clare Foster, CFO, of Strix Group plc (AIM: KETL) held an Investor Presentation covering their Full Year results. Management discussed the pace of recovery within Kettle Controls, the rationalisation that is ongoing within Consumer Goods, and the strong growth at Billi and Laica. They also examined their progress in paying down debt and the temporary pause in the dividend. Questions from investors were answered at the end.
Link to video:
https://www.equitydevelopment.co.uk/research/investor-presentation-qa-video-with-management-team-fy23-results
Started: EquityDevelopmen, 28 Mar 2024 11:55
Last post: Morbox, 28 Mar 2024 13:29
ED, thanks for posting. The new CFO seems to be very competent. This company I do feel is one that in a few years time you’ll be kicking yourself for not investing more (hopefully).
Mark Bartlett, CEO, and Clare Foster, CFO, of Strix Group plc answered a series of questions following publication of FY23 results for the 12 months ended 31st December 2023. Subjects ranged from growth in kettle controls to the dividend and Billi, as well as the outlook for the company. The interview is available to see below.
In a separate video, the team conducted an Investor Presentation where they discussed highlights of the period, provided a Financial review, and went into detail on performance and prospects for each of the Group's business categories.
Both videos have been divided into chapters for ease of viewing: https://www.equitydevelopment.co.uk/research/investor-presentation-video-/-qa-with-management-team-fy23-results
Https://www.manxradio.com/news/isle-of-man-news/strix-to-partially-close-ramsey-factory/
Haven’t read through the results yet but this was reported today.
Totally agree unhooked, why the hell they paid a div, who knows, but a different CFO now, so lets see. It's not often I say this but a rights issue should be discussed by the board (all funds to pay down debt).
Well, that's the divi gone. Classic! Poor management & capital allocation from the previous lot has reduced what was a highly profitable cash-generative business to one that got itself into so much debt that it has had to stop paying divis for a year. Not terribly happy. Long road back.
To me it looks like management have done the right thing. Loan covenant pushed to 2.75x from 2.25x which removes the right of a rights issue. In return they have cancelled the dividend for 2024. I think this is the right business decision. I’m happy to be patient as I do think Strix has tremendous potential once Kettle controls starts firing on all cylinders. Happy to stay on board.
Well, not too assured, HY results webcast the company while answering a question about why pay a Div, why not use it for debt, said our II expects a Div so we can afford to give a small one. Now final has been cancelled. Personally they shouldn’t have pay the HY one as well. Apart from that, looks like the corner has been turn. Will spend time later going through the results.
Started: EquityDevelopmen, 27 Mar 2024 08:11
Last post: EquityDevelopmen, 27 Mar 2024 08:11
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 likelihood that its markets will begin to deliver more meaningful recovery in H2, none of this good news looks factored into the current valuation.
The focus is shifting from survival to recovery and as such, we increase our fair value / share to 173p (149p).
Link to research report: https://www.equitydevelopment.co.uk/research/billi-drives-top-line-growth
Started: EquityDevelopmen, 11 Mar 2024 15:01
Last post: EquityDevelopmen, 11 Mar 2024 15:01
We are pleased to host the senior management of Strix Group plc, the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, for an Investor Presentation covering the company's Preliminary Results for the twelve month period ended 31 December 2023.
The online presentation will be hosted by Mark Bartlett, CEO, and Clare Foster, CFO.
This event will take place at 2.00pm on Tuesday 2nd April. The webinar is open to all existing and potential shareholders, and you may register below.
Questions can be submitted during the presentation to be addressed at the end.
Link to sign up: https://www.equitydevelopment.co.uk/news-and-events/strix-investorpresentation-2april2024
A good sign now would be the new CFO investing her money in a decent amount of shares.
Started: EquityDevelopmen, 25 Jan 2024 07:35
Last post: EquityDevelopmen, 25 Jan 2024 07:35
Research note here: https://www.equitydevelopment.co.uk/research/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 adj. EPS level.
With significant scope for recovery in its key market and the focus switching to the most profitable areas, we expect a marked uplift in profitability and its share rating over the medium term.
Started: Morbox, 10 Jan 2024 10:50
Last post: Morbox, 25 Jan 2024 07:22
Nothing bad, but still headwinds. Happy to carry on holding.
I think it maybe next week, going on the last two years. Some reason I had w/c 15th Jan, but can’t find where I got that from.
Got to say I'm a bit nervous about it. China still very weak, but staying with it and may add on any drop.
On a bit of a roll the last few weeks up to 67/68p but on diminishing volume. Nevertheless always good to raise the base level from which to rise again on better news. Holding and hoping.
Yep, something is not quite right, but I’m sticking with it for now. I’ve got the next update week commencing 15th Jan. I still think we will see headwinds in that one but hoping for a 2024 recovery back to above 100 would be a start.
I agree with Morbox, a CFO does not retire with immediate effect. Personal or family reasons would be in the statement if that was the case. Something's not quite right here.
My hunch is it'll be good for the business overall and reassuring to have an experienced non-exec temporarily takeover before a permanent replacement is found. Though I wonder if financial insects are about to crawl out of the woodwork.
The covenant dropping to a 2.25x ceiling at the end of December instead of September makes me question how much others already knew. Mr Thompson’s IC article was either incorrect at the time or he already knew more than other investors had been told.
I am unsure whether to be optimistic or pessimistic following this RNS. The next update will be interesting.
Didn't like the CFO myself but does have a large amount of shares.....
However they’ve dressed this up, imo it looks like a falling out to me. No CFO retires with immediate effect. The good news is that “ Strix also announces that it has proactively engaged and agreed with its banking syndicate a leverage ratio covenant relaxation to 2.5x in September 2023 and will then revert to 2.25x as at December 2023.” I did have concerns it would be breached and shows some flexibility.
Started: EquityDevelopmen, 30 Oct 2023 08:01
Last post: EquityDevelopmen, 30 Oct 2023 08:01
Lenders to Strix Group have agreed to temporarily ease its key banking covenant, and CFO announces retirement. Our forecasts are unchanged, but fair value adjusts to 167p per share.
Read / hear summary of new note below:
https://www.equitydevelopment.co.uk/research/temporary-relaxation-of-covenants
Started: ripley94, 10 Sep 2022 15:29
Last post: jimbren, 5 Oct 2023 20:47
Or is it Farringdon Capital Management, dutch-based, in fact. Their Factsheets don't indicate the greatest investment performance. Still, good to have buyers.
Blackwell LLC, a small hedge fund with a few stakes in US stocks. All revealed tomorrow. Looks like not bad news.
A very decent profitable company that has had a bit of a hard time but fundamentally sound with strong market presence.
Up 19% today to 66p .
One average down that has gone for me and looks like I got the bottom.
Sheer luck this share game.
Short squeeze maybe.
Unusually for me up on the Monday next trading day.
Topped up in ISA 53p yesterday.
Orders to be filled IMO, some big buys went through, they can have my mid 50's at 80p +, Happy to hold!
Anyone have an indication of what's caused the high volume today and the price rise, 17% as of now?
Kick up the @ss for the share price
Started: Run1, 5 Oct 2023 16:08
Last post: Run1, 5 Oct 2023 16:08
Well, I guess it would have been wise to follow Mark Bartlett's lead and have bought on Sept 22nd at 51p.
The executives may well have insights ....
Started: Morbox, 2 Oct 2023 13:49
Last post: Morbox, 2 Oct 2023 13:49
Not sure if he just crossed the threshold, or is a completely new holding but 4% nice to see no reduction RNS as yet!
Started: HorisM, 2 Oct 2023 10:34
Last post: headder, 2 Oct 2023 10:47
Looks to me that one of the big shareholders wants out. No RNS yet so expect selling to continue over the coming days at least. Don't expect a rapid rebound as quite a lot of buyers wouldn't touch this until they know who is selling, if it's octopus investments, they have 10% of the shares so the price could get silly. Also, the debt covenant reduces to 2.2X ebitda soon with uncertainties over refinancing, interest rates and profitability. Don't forget about placing risk via. share rights issue.
At the floor, big value play here.
company has got the bad news and costs out, so now they can move back to profit generation.
there was a 500k share sell and the price didnt move, so now big sellers cleared and floor formed.
Can see this move back to the 70's over the course of a couple of weeks.
Started: Mbrt, 25 Sep 2023 11:56
Last post: TheGreyMonk, 29 Sep 2023 19:46
Me neither - I listened to the Mark Bartlett video update and unless hes a blatant liar the shares are good value - I have bought a few
Interesting. Thank you Morbox. I will look into this as I must be more savvy in the new world.
It did not stop me buying more shares in KETL today.
Mainly they look at patterns and change the volumes that are either sold or bought to drive the price in the direction that they want, then sell a large volume/buy large volume to make a profit.
Article on it, but big institutions use them.
“What Is a Stock Trading Bot?
A stock trading bot is a computer program that analyzes data to identify and execute buying and selling stocks. Also known as algo trading bots, automated trading systems provide a data-driven and disciplined approach for investors.
Investors can apply a targeted investment strategy to uncover profitable trades using algorithmic trading to improve performance and uncover hard-to-see opportunities. Bots can evaluate these opportunities across a wide range of price movements and provide insights into market trends that humans might miss.
Traders and investors can create money management rules into automated trading systems that allow computers to complete trades. One of the biggest attractions of strategy automation is that such rules-based investing can force traders to be more methodical and objective in their approach, taking some of the emotion out of trading since trades are automatically placed once certain criteria are met.”
https://www.composer.trade/learn/best-stock-trading-bots
What do you suspect is happening Holden? I am ignorant to this. How are computers used to manipulate the price?
Started: EquityDevelopmen, 25 Sep 2023 12:24
Last post: EquityDevelopmen, 25 Sep 2023 12:24
We hosted an investor presentation with the senior management of Strix Group plc, where Mark Bartlett (CEO), Raudres Wong (CFO) and Harry Kyriacou (CCO & Managing Director, Consumer Goods) discussed:
- the performance in Kettle Controls where improvement is slower than anticipated
- the transformational and EBITDA contributing acquisition of Billi
- highlighted the plan to reduce net debt / EBITDA to below 1.5x in the medium term
- discussed areas of new product development
- outlined revenue & gross profit projections for each business unit out to 2026.
Strix Group is the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components. Management were discussing their Interim Results to the period ended 30 June 2023, and the strategic business objectives for the group to end 2026 as outlined in their Capital Markets Day.
The video has been divided into chapters as below:
0:00:00 Introduction
0:00:30 H1 highlights in detail
0:10:29 Financials
0:20:33 Business Categories
0:27:38 Outlook
0:30:16 Strategic Business Objectives (SBOs)
0:32:54 Group financials
0:35:40 Strix Kettle Controls
0:42:05 Billi
0:48:25 Consumer Goods
1:03:05 Human Resource Strategy & ESG
1:10:45 Summary
1:12:07 Questions & Answers
Link to video: https://www.equitydevelopment.co.uk/research/strix-group-investor-presentation-and-capital-markets-day-september-2023
Started: peacestatue, 25 Sep 2023 09:32
Last post: Morbox, 25 Sep 2023 10:11
On the webcast the board made it clear that dividend payments were required, as major shareholders were mostly income funds and it sounded like they were concerned if the div was scrapped.
The below link doesn’t (reg of interest) show he’s holding! An FT article in 2022 said he was holding in an ISA account, others mentioned in the article are within the register of interest.
https://www.ft.com/content/c54b905f-7568-4c1c-b8f2-e32907fc9503
https://members.parliament.uk/member/1132/registeredinterests
Well I am here because Lord Lee is a holder.
He s a holder because he likes well managed companies that pay a dividend.
As far as I am aware he hasnt sold out before this drop.
Of course I will be angry if he has and hasnt let us know.
I bought during the Truss effect ; that looked a good entry point but not as good as this.
They should stop paying dividents immediately and start paying off the debt.
They are not a Water Utility where the business model is to borrow stacks of money to pay stacks of dividends
because they dont make profits.
Does anyone have insights on the take of the major shareholders here?..
Started: JAdams5000, 22 Sep 2023 09:24
Last post: Morbox, 22 Sep 2023 13:04
Well to be fair he has put his hand in his pocket today.
Just took a dump
Hope so, one thing we do know that it wasn’t the director’s. That comment when asked about buying, “I’ll see what the market does over the next couple of days” hmm that’s commitment, not.
30 times the average daily volume was traded yesterday. I don't believe all of this was taken by traders or private investors. Expecting tr1 over the next couple of days
Need to get rid of yesterday’s traders first. I nearly doubled my holding yesterday and happy to wait now.
Yes, Interesting comment on the Q&A question on “private equity”.