Strix declares annual profit, but is focused on reducing debt levels
AIM-listed Strix Group said it has achieved a profit for the year ended December 31, 2023, despite the challenging macroeconomic and geographical environment.
The Isle of Man-based group, focused on kettle controls, appliances, and water purification and disinfection solutions, issued a trading update for the period which revealed it has made an adjusted profit after tax of £20.6m on a constant currency basis, and £20.1m on a reported basis.
Demand in kettle controls in the key export regulated markets remains subdued, and while it has delivered quarter on quarter recovery during 2023 which it expects to continue, it remains around 20% lower by volume than 2021 and the recovery has been slower than anticipated.
Strix’s unregulated and China markets, which represents approximately 20% of Strix’s kettle controls’ gross profit, has shown more positive signs of growth.
Following its successful integration, Billi has delivered double digit revenue and profit growth on a constant currency basis which is consistent with its strong track record over the past five years. LAICA also performed robustly with double digit revenue and profit growth on a constant currency basis.
Cash generation for the group during the second half of the year was strong and year-end net debt will be around £83.7m. The company confirms this year-end position for the net debt to EBITDA was 2.15x and debt service coverage ratio was 1.15x, which are within its covenants.
Strix said it is now focused on delivering future profitable growth and the optimal resources required to achieve this.
This will include a new internal reorganisation programme that will help the group to continue to maximise cash generation and support debt reduction with a clear plan to get net debt/EBITDA to below 1.5x before the end of 2025. More details will be provided at the preliminary results in March.
The group also announced today that, further to the announcement made on October 27, 2023, Strix has appointed Clare Foster as chief financial officer.
Clare has more than 25 years of experience working in international businesses, and was most recently the group chief financial officer at Trifast, making her a valuable addition to Strix’s leadership team.
She will join Strix on February 1, 2024 and, following a handover period, will formally take office and join the board on April 2, 2024.
Mark Kirkland intends to step down as interim chief financial Ooficer on April 2, 2024, remaining in that role until then to finalise the preliminary results and support an effective transition.
He will continue to be a non-executive director on the Strix board.
