Strix Group Plc (LON:KETL) has announced it final results, notice of AGM and publication of Annual Report.
Financial Summary
| Results from continuing operations1 | CER3 | CER3 | AER | AER | |
| Adjusted measures | FY24 | Change | FY24 | Change | FY23 |
| £m | %/bps | £m | %/bps | £m | |
| Revenue | 145.7 | 1.3% | 144.0 | 0.1% | 143.8 |
| Gross profit | 54.6 | -4.6% | 54 | -5.8% | 57.3 |
| Gross profit % | 37.5% | -230bps | 37.5% | -230bps | 39.8% |
| EBITDA | 35.7 | -10.0% | 35.4 | -10.8% | 39.7 |
| EBITDA % | 24.5% | -310bps | 24.6% | -300bps | 27.6% |
| Operating profit | 27.6 | -15.1% | 27.5 | -15.6% | 32.5 |
| Profit before tax | 18.7 | -16.3% | 18.5 | -17.1% | 22.3 |
| Net debt2 | 63.7 | -23.9% | 83.7 | ||
| Net debt leverage | 1.87x | -14.6% | 2.19x | ||
| Operating cash conversion | 114.0% | 910bps | 104.9% | ||
| ROCE | 21.7% | -60bps | 22.3% | ||
| Diluted earnings per share (pence) | 6.7 | -27.7% | 6.6 | -28.0% | 9.2 |
| GAAP Measures | |||||
| Revenue | 141.8 | -1.4% | 143.8 | ||
| Gross profit | 50.9 | -10.9% | 57.2 | ||
| Gross profit % | 35.9% | -390bps | 39.8% | ||
| Profit before tax | 5.0 | -72.6% | 18.1 | ||
| Diluted earnings per share (pence) | 0.8 | -88.7% | 7.5 |
1. Adjusted results from continuing operations exclude adjusting items and results from discontinued operation, see notes 6(b) and 28.
2. Net debt is as defined by the Group’s bank facility agreement and excludes the impact of IFRS 16 lease liabilities and accrued interest.
3. “CER”, being Constant Exchange Rate, is calculated by translating the FY24 figures by the average FY23 exchange rate, and “AER” being Actual Exchange Rate.
Financial Highlights
· Adjusted revenues increased by 1.3% to £145.7m at CER in FY24, despite challenging macro conditions and ongoing rationalisation
· Adjusted profit before tax of £18.7m, ahead of market consensus and comfortably within previously announced range of £18.0m-£19.0m
· Management’s continued focus on net debt reduction and cash generation resulted in a £20.0m decrease in net debt to £63.7m (FY23: £83.7m)
· Strong cash management reduced net debt leverage to 1.87x, well within announced target range of 1.0x-2.0x
· Following a successful new product launch, Billi returned to double-digit growth in Q424, contributing 30.3% of Group revenue
· As reported at HY24, further restructuring and rebasing of the business has led to a number of adjusting items, see note 6(b)
Operational Highlights
· Welcomed Clare Foster as Chief Financial Officer alongside other key strategic hires across the Group
· Built strong foundations through comprehensive restructure and rebasing of the business to support the Group’s medium-term opportunities for profitable growth:
o Further rationalisation of Consumer Goods division, with a focus on more profitable products, geographic expansion and new product development
o Disposal of HaloSource completed in Q424
o Partial relocation of manufacturing facility at the Ramsey factory to Strix’s China facility improving shipping times, cost and environmental footprint
· Launch and first sales of the new Low-Cost control and the development of the Next Generation of innovative controls is making good progress
· Successful launch of new Billi products and initial distribution agreements in Europe secured
· Consumer Goods division won incremental white label retail contracts for 2025 and began manufacturing appliances for an existing baby brand OEM customer out of its China factory
Outlook
· Controls division’s new Industrial Design Service proved to be of particular interest at the Spring Canton Fair, with multiple projects signed up to and more to follow
· Some evidence that macro-uncertainties could weigh on Q225 Controls sales, potentially deferring volumes into Q325
· Billi’s double-digit growth has continued into H125 as it gains further traction with customers across its key target markets
· Despite some initial weakness in certain sectors, Consumer Goods is now in a stronger and better focused position to execute on the sale of more profitable products, geographic expansion and new product innovation
· Too early to determine the net global impact of the evolving tariff arrangements, however Strix’s direct sales into the US are limited with no material sales from Consumer Goods and none from Billi
· Strong foundations mean the Board remains confident in the Group’s outlook, with its full year expectations unchanged
Mark Bartlett, Chief Executive Officer of Strix Group Plc, commented: “Strix has continued to make strong progress on achieving its goals for the year, in particular the restructuring and rebasing of the business which has been transformative, and reduction of our net debt position to well within our targeted range. Strategic progress has been made across all divisions – with our Low-Cost controls successfully launching in less regulated markets, significant new partnerships secured by the streamlined Consumer Goods division, and Billi’s return to double-digit growth in Q424, to provide clear validation of Strix’s approach to acquisitions which support the Group’s longer-term growth opportunities.
During the period, Strix cemented the foundations for its medium-term growth prospects – further improving our competitive position and delivering adjusted profit before tax slightly ahead of consensus. Whilst macroeconomic conditions remain challenging at least in the short-term, we continue to see opportunity in our key markets and appropriate investment across the Group remains ongoing to protect new product development and other projects to support our medium-term growth aspirations. We look forward to continuing this momentum in the coming year.”
Analyst & Investor Presentation
Strix will be hosting a presentation for analysts later this morning, at 09:30am (BST). Analysts wishing to attend should email [email protected] for details.
Strix will also be conducting an online Investor Presentation on Thursday 1 May 2025 at 11.30am (BST) providing an update to investors following today’s results and to answer questions submitted by viewers.
The webinar is open to all existing and potential shareholders, and registration is free. You can sign up to register here: https://www.equitydevelopment.co.uk/news-and-events/strixgroup-investorpresentation-1may2025
