City round-up: Strix; LBG Media Group
Isle of Man-based Strix has reported good interim progress with its figures for the half year to June 30, 2024, today.
The AIM-listed group, focused on kettle controls, appliances, and water purification and disinfection solutions, revealed a 3.5% increase in adjusted revenue levels, at £67.2m during the reporting period, led by a strong performance in Kettle Controls and a positive mix shift to higher margin sales in the regulated and less regulated markets.
Pre-tax profits rose 15.9% to £8m.
Net debt has been cut from £93.1m to £68.8m, due to strong cash management, and is significantly ahead of the year-end target.
During the period the group completed a successful five per cent equity placing originating from a reverse enquiry, generated gross proceeds of £8.7m.
The group also revealed a one year extension of its £80m RCF banking facilities was secured on September 11, 2024, extending maturity to October 25, 2026.
In March this year the group began a rebasing of the core business to build strong foundations to support its medium term opportunities for profitable growth
It has implemented a number of restructuring initiatives including the planned disposal of Halopure, expected to complete by the end of FY24, further streamlining of the Consumer Goods division to drive ongoing profitable growth, and partial relocation of manufacturing activity at the Ramsey factory to Strix’s China facility to improve shipping times, cost and environmental footprint.
The group also confirmed it has taken three successful actions on IP protection during the interim period, and more have been identified for the second half.
Strix said the rebasing of the business has made significant progress in the first half of the year which the group expects to see continue to the year end.
Following relatively lower trading for parts of Q3, Strix expects to have further clarity on the sales trends in the Kettle Control Markets as it moves into its peak season, supported by further product launches to increase the group’s target addressable market
And while currency headwinds and commodity prices continue to present obstacles, the group said it is actioning various strategies to mitigate the effect of these where possible.
Chief executive, Mark Bartlett, said: “Strix has made considerable progress on a number of fronts in the first half of the year, namely the continued rebasing of the business and the reduction of our debt position which I’m very pleased to report is ahead of our target.
“Operational improvements have been made across the group, better positioning us for medium and long term growth opportunities including new product launches, rationalisation of the Consumer Goods division and the roll out of Billi (a Strix brand) in key markets.”
He added: “We continue to see profitable growth opportunities in all of our core markets and look forward to executing on our strategy in the second half of the year, further improving our competitive position, strengthening the balance sheet and delivering profit growth.
“Notwithstanding the macro uncertainties, including the relatively lower trading for parts of Q3 in regulated Kettle Controls, the board expects to deliver full year results for the year in line with market expectations.”
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Lad Bible Group, the Manchester-headquartered content business has posted strong half year figures with turnover growing to £42.3m for the half year to 30 June 2024 and returning to pre-tax profits of £7.1m for the period.
The group is aiming for £200m of revenue and said it is confident in delivering on market expectations for the 12 months to 31 December 2024.
Highlights include Uber Eats sponsored Euros-themed editions of the hugely popular original series “Snack Wars”, launched in June, which it said demonstrates expanding capabilities and success in delivering brand sponsored content in a native format with viewing figures for these episodes surpassing viewership of the Euros final on the BBC.
New business wins in the US included Boston Beer Co., NYX and White Castle.
Solly Solomou
CEO, Solly Solomou commented: “Our strong first-half performance demonstrates excellent progress along our line of sight to £200m of revenue and showcases our team’s success in diversifying income and strengthening our operating model. Key sporting event activations and rising audience numbers confirm our position as the number one digital entertainment brand for young adults, a highly sought-after but challenging demographic for marketers.
“I am more excited than ever by the opportunity that lies ahead, particularly in the US, where we are going from strength to strength and where the complementary nature of our combined businesses is already demonstrating success. Our thoughtful and engaging campaigns, which frequently deploy messages of social responsibility, remain central to our mission.
“In the complex digital media landscape, the detailed understanding we have of our audience and our propensity to be agile in such a dynamic market provide a strong foundation for long-term growth and the delivery of shareholder value.”
LBG has changed its accounting reference date and financial year end so that, going forward, interim and annual accounts will be prepared and published for the six months ended 31 March and 12 months ended 30 September.
The decision to change the year end was taken to better guide business planning and investment pacing and improve visibility over market dynamics, providing transparency for stakeholders by bringing the calendar Q4 spend into the first half of the financial year. As a result, our audited FY24 results, which in the first instance will be for the nine-month period ending 30 September, are expected to be announced in January 2025.
