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(Sharecast News) - Kettle safety and water technology company Strix reported a 10.5% fall in revenue in its 2022 results on Wednesday, to £106.9m, driven primarily by a reduction in its kettle controls operations due to market conditions.
The AIM-traded firm said adjusted EBITDA totalled £32.1m, representing a decrease of 20.7% compared to the same period in the prior year, driven by the fall in revenue.
Adjusted profit after tax totalled £23m, in line with the guidance given in the November trading update.
It represented a 26.8% year-on-year decrease, due to a reduced EBITDA and an increase in SONIA through the year, coupled with higher net debt after the acquisition of Billi.
Strix said its net debt widened to £87.4m from £51.2m over the year, making for a net debt-to-adjusted EBITDA ratio of 2.2x.
Adjusted basic earnings per share and adjusted diluted earnings per share were 10.9p and 10.8p, respectively, down from 15.2p and 14.9p for 2021.
As capital allocation decisions prioritised debt reduction, the board of Strix proposed a final dividend of 3.25p per share, lower than the 5.6p it proposed for 2021.
That would make for a total 2022 dividend of 6p per share, down from 8.35p per share in the previous year.
"Following a period of uncertainty across a number of Strix's key export markets in the fourth quarter, recent sales data in 2023 indicates some green shoots are appearing and the path to a return of growth is opening across all segments," said chief executive officer Mark Bartlett.
"The successful integration of Billi will propel Strix into a new growth phase, further diversifying away from the core kettle controls business with strong potential for greater top line growth and improved margins going forward."
Bartlett said Strix was continuing to implement a range of strategic initiatives to minimise the impact of the continued headwinds it was facing, including a "functional streamlining programme" and a focus on the reduction of inventory in a bid to maximise cash generation.
"Strix will prioritise debt reduction and free cash flow generation, with a clear plan to get net debt-to-EBITDA to below 2.0x during 2023, and to below 1.5x during 2024."
At 1126 BST, shares in Strix Group were up 7.13% at 94.49p.
Reporting by Josh White for Sharecast.com.
