Strix Group delivers growth in Billi and Consumer Goods in Interim Results

Strix Group Plc (LON:KETL) has announced its interim results for the six months ended 30 June 2025.

Financial Summary

1.        Adjusted results from continuing operations exclude adjusting items (see note 10) and results from discontinued operations.

2.        Net debt is as defined by our 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 HY25 figures by the average HY24 exchange rate, and “AER” being Actual Exchange Rate.

Financial Highlights

Operational Highlights

Outlook & Post Period End

Mark Bartlett, Chief Executive Officer of Strix Group Plc, commented: “We are pleased to have progressed strategic initiatives across the business in HY25 despite volatile macro headwinds in the global SDA market. We have seen good progress in terms of new product development and geographical expansion across the divisions. It was especially pleasing to see Billi delivering such a strong performance throughout the period and Consumer Goods returning to growth.

As noted, macroeconomic and geopolitical issues, specifically indirect tariff impacts, have led to widespread uncertainty and a weakening US dollar, both of which have contributed to a Q225 significant slowdown in Controls, resulting in reduced revenue and an increase in overall net debt. These effects have been experienced across the industry.

Reducing the debt position within the stated appetite of 1.0-2.0x as soon as possible will be of critical focus to the Board over the next 12-18 months, whilst also managing and minimising the impact of global volatility in the short term. With strong foundations in place, the Board believes that Strix has and will continue to build resilience into its strategy and business model as the market continues to evolve.”

Analyst & Investor Presentation

Strix will be hosting a presentation for analysts later this morning, at 11:00am (BST). Analysts wishing to attend should email strix@gracechurchpr.com for details.

Strix will also be conducting an online investor presentation on 2 October 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://us06web.zoom.us/webinar/register/WN_ysHvy2iFSiKFU6av2iWniA#/registration

CEO’s Report

Introduction

The Group reports mixed trading results for the first half of 2025. In terms of Billi and Consumer Goods, Strix has continued to deliver against its strategic initiatives, with both divisions reporting strong trading performances during the period. However, Controls has continued to face challenges due to macro headwinds, particularly indirect tariff implications and currency impacts, driving substantially lower order volumes and revenues in Q225. Q325 has seen a partial stabilisation of the market, although not yet a recovery in lost volumes.

Following the restructuring and rebasing initiatives undertaken in FY24, the Group has solid foundations to deliver on its strategy. Macroeconomic and geopolitical concerns continue to pose short-term challenges, but this foundational strength, combined with ongoing proactive mitigation measures undertaken by the Group, will allow Strix to bear the impacts of global market volatility and effectively capitalise when the Control’s market starts to recover.

Market Overview

Macroeconomic and geopolitical headwinds have continued to impact in H125. UK manufacturing remains in a period of contraction (UK PMI 47.0 in August; 11th straight month below 50) amid weaker orders and tariff uncertainty, while broader global demand continues to be volatile. Albeit these are cyclical pressures and do not alter the Group’s long-term growth strategy.

Political and economic uncertainty in key Regulated markets (UK and US) has tempered consumer spending and delayed orders in Controls, particularly due to indirect tariff effects and the impact of a weaker US dollar, as flagged in the July trading update. Conversely, Low-Cost controls are gaining traction in Less Regulated markets, validating the Group’s investment in this space while also broadening its addressable market. Due to the largely replacement nature of the Controls business, management’s Q425 expectations are based on a degree of Regulated market recovery coming through and therefore an expected higher than normal weighting to H225 in terms of sales.

Health, wellness and sustainability remain powerful category drivers across all divisions. Demand for efficient, filtered-water and energy-saving solutions continues to outpace general appliance demand, reinforcing Strix’s product roadmap and brand positioning, particularly for the Consumer Goods and Billi divisions. External market data also points to steady Small Domestic Appliances (“SDA”) growth in the coming years.

Urbanisation and return-to-office refurbishment continue to support premium hydration and boiling-water systems, particularly for Billi, where the division delivered growth in HY25 via an expanded product range. Billi AU successfully moved site, with the new manufacturing facility becoming operational in July 2025. This milestone increases production capacity to support future growth, with the official opening of the new site scheduled for Q425.

The Group continues to expect the global SDA market to reach 4.1 billion units by 2029 (c. 1.5% CAGR 2024-2029), consistent with prior guidance, while broader appliance market sources project mid-single-digit value growth through 2030-2032. Strix’s mix shift toward Low-Cost controls and health and well-being solutions positions the Group to capture market share despite near-term volatility.

Controls

Controls contributed significantly reduced revenues, down (24.2)% to £23.1m (HY24: £30.5m) at CER following the previously noted geopolitical and macroeconomic uncertainties, which have contributed to order delays and lower production volumes at key OEMs. The division is seeing higher than normal activity from copyists, particularly in product lines aimed at the US market (representing approximately c. 10% of revenue generated in the Controls division). As a result, the number of actions taken to protect Strix products and IP has increased in HY25 as the safeguarding of the Group’s market share increases in priority.

The Group continued to make significant operational progress during the first half in Controls. The new Next Generation control production line in Strix’s Chinese facility has been successfully completed, and the launch to market has been well received. Next Gen controls are now confirmed in new products at several of the Group’s partner OEMs with initial shipments targeted for Q425. As demonstrated by the launch of the Low-Cost and Next Generation controls, new product development and product optimisation within the Controls division is focused on delivering solutions that can expand into additional market segments, defend against copyist manufacturers and increase Strix’s overall addressable market. The Next Gen component also offers the key benefit of being smaller in size, meaning the level of materials required is reduced and therefore margins are less affected by volatile commodity prices. The Group’s enhanced Industrial Design Service also proved to be of particular interest at the Spring Canton Fair, with multiple projects signed up to and more expected to follow.

Billi

Billi has continued to deliver a strong performance in HY25, reporting double-digit growth rates of 10.4% and contributing £23.6m (HY24: £21.4m) in revenue. The geographical rollout strategy has continued to progress, gaining traction with new customers in key markets. The division also successfully moved its HQ site in Australia, with a new enlarged manufacturing facility operational in July 2025, increasing capacity for future growth. Billi is retaining its focus on innovation and new product development, with the smaller capacity Omnione™ unit to service the Australia and New Zealand residential market to launch in Q425.

Billi’s main growth areas are focused on geographical expansion, particularly through Europe, South East Asia and the Middle East, alongside factors including custom tapware finishes, design profiles and space conservation requirements. The division continues to benefit from multiple recurring revenue streams including rental, servicing contracts and filter requirements, providing significant cashflow benefits to Strix.

Consumer Goods

Following the successful restructuring of the Consumer Goods division in 2024, it has been pleasing to see the division return to growth during HY25, contributing £15.2m (HY24: £14.2m) in adjusted revenues. Product manufacture in China for its leading global baby brand customer continues to be rolled out, and additional products have been launched in the period as expected.

Alongside this, a number of important initiatives were delivered which have strengthened the division’s competitive position and broadened its product offering. A patent-pending filter series aimed at addressing potential PFAS contamination in household water supplies has been developed and launched, positioning the business at the forefront of solutions to an increasingly important health and environmental issue. In addition, September 2025 marked the launch of the LAICA brand in the UK, supported by a creative and innovative marketing campaign that is expected to build consumer awareness and unlock new growth opportunities in this market. The division is also planning the installation of new automated lines for the assembly and packaging of anti-bacterial filters has enhanced efficiency and capacity, ensuring the business is well placed to meet growing customer demand in Q425.

While the division sells into the SDA market, which as noted, continues to see high levels of volatility, these achievements reflect the continued momentum within the Consumer Goods division and its ability to deliver both operational improvements and product innovation, supporting its return to sustainable growth.

Sustainability

Sustainability remains at the core of Strix’s purpose-driven growth strategy, and HY25 marked another period of tangible progress on the Group’s “Planet, People, Purpose” framework, aligned to the UN Sustainable Development Goals. All the Group’s primary operations continue to operate on a carbon-neutral basis.

The Group advanced a number of initiatives to strengthen its environmental commitments. Zero-pathway plans are being developed across all subsidiaries, with Billi’s pathway already completed and further reviews underway to accelerate progress. Strix remains on track to achieve record internal electricity generation in 2025, while its 2023 CDP rating improved from ‘C’ to ‘B’, with the 2024 return submitted on schedule. Sustainability is also fully embedded into the Group’s innovation agenda, with continued investment in the Next Generation control platform as it moves through commercialisation, alongside co-development programmes with leading Western partners focused on energy-efficient and sustainable hydration solutions.

Progress was also made in enhancing transparency and stakeholder engagement. LACIA published its first standalone integrated ESG report, developed in line with the International <IR> Framework, GRI Standards and the new VSME guidelines for non-listed SMEs. This report not only reflects LAICA’s commitment to robust disclosure but also supports the Group’s relationships with local financial institutions and government bodies.

On the social side, Strix launched its new global HR and people platform, HiBob. This initiative is designed to empower employees, promote collaboration, and strengthen connectedness across the organisation.

Together, these actions demonstrate how Strix continues to embed sustainability across every area of its operations-environmental performance, product development, governance, and people, ensuring that long-term structural growth is closely aligned with tangible ESG outcomes.

Refinancing

Following on from the significant reduction in net debt in FY24, and as announced in the Group’s Trading Update published 30 July 2025, Strix formally initiated a competitive refinancing process with nine interested lending banks. Unfortunately, due to the difficult macro trading conditions, Strix has taken the decision to put this process on hold, as it became obvious that the Group would not be able to secure new appropriate, cost-effective and flexible funding at this time.

The Group’s existing facilities continue to operate until October 2026 providing security and flexibility to the business. Strix has been in constructive and supportive discussions with its existing lending group to amend current facilities to ensure they appropriately support the business ahead of a future refinance process. Further details on this are provided in the CFO statement.

In the face of the macroeconomic and geopolitical challenges, and to support a successful future refinance, management is currently developing an accelerated debt reduction programme. Strix will report progress on this at the next trading update in November 2025.

Change of Year End

The Audit Committee has reviewed the date of the Group’s financial year end and, to align better with industry cycles, especially around the key holiday season sales, as well as to allow Strix to integrate industry insights gained from attending the Canton Fair in April and October into its forecasting, the Company intends to change its accounting reference date and financial year end from 31 December to 31 March.

The Company will report its next audited results for the 15-month period to 31 March 2026.

The schedule of financial reporting events for Strix will therefore be as follows:

·      Trading and debt reduction update in November 2025

·      Trading update in spring 2026

·      Publication of its audited accounts for the 15 months to 31 March 2026 (planned to be released in July 2026 but in any event no later than 30 September 2026)

Outlook

Strix continues to navigate and mitigate where possible, the impacts of the volatile macroeconomic trading environment in the SDA market. Following significant work in previous periods, the Group’s business model remains resilient, and the Group remains well positioned to capitalise as end markets continue to evolve.

Although it is usual for sales to be H2 weighted, H225 is expected to be more heavily weighted than in previous years due to the order deferrals and volatility seen in Controls in H125 and a presumed part recovery of volumes in Q425. Strix will provide a further trading update to the market in November 2025 following the Canton Fair where the leadership team will gather market intelligence and sentiment within the OEM community in the face of the macro environment. At the same time, the Group will report back on progress on the accelerated debt reduction programme.

Looking ahead there can be no doubt that the macroeconomic and geopolitical environment will continue to present challenges. However, notwithstanding this, the strong foundations of the Group mean the Board remain confident in the Group’s medium-term outlook and expect results for the 15 months to 31 March 2026 to be  in line with management expectations.

Mark Bartlett

CEO

29 September 2025