Strix Announces £10 Million Tender Offer Following Billi Sale

Strix Group (LSE:KETL) intends to return up to £10 million to shareholders through a tender offer priced at 43 pence per share, representing a 10.5% premium to the most recent closing price. The offer will cover up to roughly 10.1% of the company’s issued share capital and is scheduled to run from 10 to 30 April 2026, subject to shareholder approval at a general meeting on 30 April. The initiative follows the sale of Strix’s Billi division and forms part of a broader strategy aimed at returning capital and strengthening the company’s balance sheet.

Proceeds from the Billi disposal have already been used to significantly reduce debt. Around £105 million was allocated to repay multi-bank borrowing facilities, leaving the group with a net cash position of approximately £35 million. As a result, expected annual interest costs are set to fall to below £1 million. Alongside the tender offer, Strix has paused its previously announced £10 million share buyback programme. Management says the steps reflect a focus on enhancing shareholder returns while maintaining financial flexibility, including access to a £25 million undrawn revolving credit facility. A more detailed capital allocation strategy is expected to be presented later in the year.

The company’s outlook reflects a balance of positives and challenges. Technical indicators show strong upward momentum in the share price, while valuation appears relatively reasonable. However, concerns around profitability and leverage continue to weigh on the overall financial profile, highlighting areas the company will need to address to sustain longer-term growth.

More about Strix Group

Strix Group plc, listed on AIM, is a global specialist in the design, manufacture, and supply of kettle safety controls and related technologies. Its product portfolio includes components and systems for water heating, temperature regulation, steam management, and water filtration. Strix supplies these technologies to appliance manufacturers worldwide, positioning the company at the core of safety and efficiency in both household and commercial hot water applications.