Strix Group aims to finalise full refinance of banking facilities in 2025 to drive growth

Strix, the AIM-listed Isle of Man-based group, focused on kettle controls, appliances, and water purification and disinfection solutions, said it has seen “promising signs” of recovery in the kettle controls market.
It revealed the upturn ahead of its AGM at its IoM headquarters later this morning.
Chief executive, Mark Bartlett, will tell shareholders: “The Kettle Controls market continues to show some promising signs of recovery as we move into the peak season. Whilst it is too early in the season to determine whether this uptick is due to stock refill or an ongoing improvement in consumer demand, the initial indicators are encouraging.
“I am pleased to confirm that profit before tax for the 2024 full year remains in line with current market expectations. Additionally, the cash conservation actions taken in HY 2024 have resulted in year-to-date cash generation for the group running slightly ahead of expectations. This positive trend further supports an anticipated net debt leverage position of less than 2.0x.
“The recent 5% equity placing allows the group to achieve net debt leverage reduction 4-6 months earlier than originally anticipated, securing an associated interest saving benefit due to the margin ratchet mechanism contained within the current facilities. This earlier leverage reduction facilitates upcoming discussions and refinancing plans with the group’s banking syndicate.
“It remains the company’s intention to finalise a full refinance of its banking facilities in 2025 to advance the group’s growth aspirations. Accelerated deleveraging will enable the group to expedite its investment in new technologies, to support longer term growth opportunities while still delivering on its stated target to reduce net debt leverage to 1.5x by the end of FY 2025. Once this debt leverage target has been achieved, the board remains committed to maintaining a leverage range of between 1.0x to 2.0x for the medium term.
“Restructuring initiatives continue to be implemented across the group to drive profitable growth, support improved efficiency, sustainability and cost control, whilst securing a suitable platform and resources for our mid-term growth objectives.”
He revealed that the group will announce a pre-close trading update for the six months period ended June 30, 2024 on July 25.