Strix to deliver confident trading strategy in virtual Capital Markets Day
Isle of Man-based Strix Group is hosting a virtual Capital Markets Day this afternoon to provide an update on its medium-term strategy and current trading.
The AIM-listed group specialises in temperature control systems for kettles, but has diversified into water purification and disinfection solutions in the livestock farming industry in China, where it already operates manufacturing facilities.
In its medium-term strategy update the company said the board expects to double group revenues over the next five years, primarily through rganic growth in its water and appliances categories; continue to grow market share in kettle controls; invest in compelling growth opportunities with particular focus on a new product development and commercialisation strategy that supports the medium-term growth ambition; and execute on ESG commitments to provide a safer sustainable future for its customers.
Current trading reveals strong order book visibility for December which now underpins the board’s confidence that 2020 profitability for the group – excluding the impact of the LAICA acquisition – will show modest growth versus the prior year.
Record sales since June have been driven by the replenishment of pipe-line stock and a better than expected seasonal uplift, it said.
Buffer stock has been implemented to minimise any disruption during Brexit negotiations and all manufacturing locations remain fully operational.
Also, adjusted net debt remains in line with expectations and the group has a strong liquidity position.
Despite the unprecedented global macroeconomic disruption caused by the COVID-19 pandemic, the group said it is robust and, as a market leader with a global footprint, remains highly confident in its future prospects.
Strix said its investment proposition is underpinned by a high quality, resilient and robust business model which benefits from geographic and product diversification; a continued focus on efficiency measures and strategic initiatives to manage its highly variable cost base and prudently invest in compelling growth opportunities; a conservative balance sheet and low leverage provides financial flexibility for the medium term to navigate headwinds and deploy capital consistent with allocation of capital priorities; and a progressive dividend policy linked to underlying earnings has been maintained reflecting the board’s confidence in the outlook for the group.
