Strix Group (LSE:KETL) has reported stabilising trading conditions across its business, with improved performance in its Controls division and a return to growth in Consumer Goods. The company now expects revenue of approximately £150m for the year ending 31 March 2026, alongside adjusted pre-tax profit in the range of £9.8m to £10.2m.
Performance has been influenced by higher input costs, particularly for copper and silver, as well as the absence of a rebound in volumes within regulated markets and a reduction in promotional activity. However, management noted that ongoing inventory reductions and implemented price increases are beginning to support margins.
The group has also significantly strengthened its financial position following the sale of its Billi division, which generated net proceeds of around £105m. The transaction enabled Strix to repay its multi-bank debt facilities, leaving the company with approximately £35m in net cash and a reduced £25m revolving credit facility that remains undrawn.
Alongside the balance sheet improvement, Strix has introduced a cost optimisation programme expected to deliver around £2m in annualised savings over the next 18 months. The company has also launched a £10m share buyback programme and reached heads of terms for a manufacturing and development partnership with Billi. Meanwhile, the search for a new chief executive continues ahead of the planned departure of current CEO Mark Bartlett in May 2026.
The company’s outlook reflects a combination of strong technical momentum and relatively reasonable valuation metrics, balanced against financial performance challenges. While the share price trend remains positive, ongoing issues related to profitability and leverage highlight areas that will need improvement to support sustainable long-term growth.
More about Strix Group
Strix Group, founded in 1982 and headquartered on the Isle of Man, is a global leader in the design and manufacture of kettle safety controls and related technologies used in water heating and temperature management. Listed on AIM under the ticker KETL, the company has expanded into broader water-related technologies, including filtration and consumer water solutions through brands such as Aqua Optima and LAICA.
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