Last checked at 27 May 2021 07:00
27 May 2021
Strix Group Plc
("Strix", the "Company" or the "Group")
AGM Statement
Strix Group Plc (AIM: KETL), the global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components provides an update ahead of its Annual General Meeting ("AGM") at 9 a.m. today.
At the meeting, Mark Bartlett, Chief Executive Officer of Strix, will make the following statement:
"We are pleased to report that our improved performance in the second half of 2020 has continued so far through the first half of 2021 and now anticipate delivering revenue growth of circa 30% for the Group during 2021.
The kettle controls category is performing strongly, particularly within the Regulated segment and a strong order book gives management confidence for H2 2021 and beyond.
We have also successfully implemented price increases on some of our legacy products in both kettle controls and water categories, which alongside a range of other efficiency measures, including continued automation and strategic initiatives, has enabled us to proactively offset cost inflation.
In the water category, the sales of the new products launched are starting to accelerate with additional product launches from LAICA implemented in H1 including GlaSSmart (instant water filtering bottle), tap filters and the myLAICA sports bottles.
We are also seeing that many of the appliances created are starting to penetrate the consumer markets across the world. The Aurora appliance will launch on Amazon under our Aqua Optima brand in June and a version incorporating Strix technology has recently launched, initially in Asia, with a leading global brand.
Our HaloPure technology continues to gain wider recognition by the market and two further contracts have been secured this month at a regional government owned livestock company in China. This livestock company owns more than 40 farms in three provinces which will help further promote the profile of this solution. Given this momentum, I am confident of securing 10 installations during the financial year, which remains in line with our previously communicated plans to commercialise this technology.
I am pleased with the integration of LAICA which remains in line with our plan for capturing identified synergies and driving future margin expansion. The trading performance in 2021 has also been strong delivering circa 20% revenue growth.
The new manufacturing operations in China remain on target and budget to be fully operational by August as originally scheduled. All of the press and mould machines and 40% of the assembly lines have been moved and the commencement of the production lines have begun. A corporate video giving an updated overview of the new factory is now available via this link: https://player.vimeo.com/video/555060716 and will be on our website after the AGM.
The Group has relocated its offices in Seattle to a new location to optimise costs and provide a more appropriate environment to support the future requirements of the business as we increase our focus on driving US sales growth within the water and appliance categories.
Strix remains in a very strong financial position to continue to deploy capital consistent with our allocation of capital priorities and invest in compelling growth opportunities with particular focus on a new product development and commercialisation strategy that supports our growth ambition. We are also actively seeking opportunities that will add value across the Group through niche acquisitions or technologies.
At the year-end results, I outlined that in 2021 Strix aims to bring its sustainability strategy to life, establishing baselines within our identified key sustainable development goals and track improvements to clearly monitor our progress year on year. In addition we will release key performance targets in our interim results in September incorporating the benefits of our new factory in China. A corporate update presentation containing our revised mission statement and code of business conduct is now available on our website.
Overall, I am confident that the positive trends in current trading and momentum so far in H1 mean that we anticipate delivering revenue growth of circa 30% for the Group during 2021 which also underpins our confidence in achieving our medium-term target to double the Group's revenues over the next five years."
For further enquiries, please contact:
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Strix Group Plc Mark Bartlett, CEO Raudres Wong, CFO | +44 (0) 1624 829829 |
Zeus Capital Limited (Nominated Advisor and Joint Broker) Nick Cowles / Jamie Peel / Jordan Warburton (Corporate Finance) | +44 (0) 20 3829 5000 |
Stifel Nicolaus Europe Limited (Joint Broker) Matthew Blawat / Francis North | +44 (0) 20 7710 7600 |
IFC Advisory Limited (Financial PR and IR) Graham Herring / Tim Metcalfe / Florence Chandler | +44 (0) 20 3934 6630 |
ABOUT STRIX GROUP PLC
Isle of Man based Strix, is a global leader in the design, manufacture and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration.
Strix's core product range comprises a variety of safety controls for small domestic appliances, primarily kettles. Kettle safety controls require precision engineering and intricate knowledge of material properties in order to repeatedly function correctly. Strix has built up market leading capability and know-how in this field since being founded in 1982.
Strix is admitted to trading on the AIM Market of the London Stock Exchange (AIM: KETL).