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(Alliance News) - Strix Group PLC on Wednesday posted a surge in first-half trading, with management tipping lockdown may have helped the kettle business as more people were at home making tea.
The Isle of Man-based kettle component manufacturer booked pretax profit in the six months to June 30 of GBP13.2 million, up 31% from GBP10.1 million in the same period last year.
Revenue climbed 58% to GBP54.7 million from GBP 34.7 million, and was up 25% on the same period in 2019.
Net cash generated from operations was GBP13.5 million, up 63% from GBP8.3 million last year.
"In some respects you could argue [lockdown] probably helped the business because so many people have been at home drinking tea and buying kettles," Chief Executive Mark Bartlett told Alliance News.
Net debt at the period end was 24% higher year-on-year at GBP46.0 million, but Strix attributed this to its acquisition of Veneto, Italy-based household appliance company, Laica, in October.
According to Strix, Laica has driven "strong revenue growth" over the period, as well as helped the company weather the impact of Brexit on logistics and shipping.
"Brexit was a little bit tough at the beginning of the year but with Laica in Italy, we've got a base in Europe that removes any of the Brexit issues we had before," said Bartlett.
"Logistics and shipping is at the moment very highly priced but in reality, as an overall cost to our products, it's not significant. And actually, 90% of our supply base is in China supplied to a Chinese factory, so we can do it by road or by sea. There's all sorts of different options."
Strix declared an interim dividend of 2.75 pence, up 5.8% on the 2.6 pence declared in 2020 and 2019.
The company said it is confident it will deliver full year results in line with market expectations, but has its eye on doubling revenue by 2025 as part of its five-year strategy.
"[We had a] great start in the first half of this year and for the forecast for the full year," said Bartlett.
"It's the first year or five and it's the start of our journey, and we're very happy with the way things are progressing."
Shares in Strix were up 2.5% at 356.52 pence in London on Wednesday.
By Josie O'Brien; josieobrien@alliancenews.com
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