Strix Group Plc (LON:KETL), the global leader in the design, manufacture and supply of kettle safety controls and other components and devices involving water heating and temperature control, steam management and water filtration, has provided an update on trading for the six-month period ended 30 June 2025. Following a strong Q125 performance, Billi and the Consumer Goods division have seen a good trading performance during the period and achieved growth in line with expectations, while the Controls division came under pressure in Q225 from geopolitical and macroeconomic uncertainties.
As flagged in the Group’s FY24 outlook statement, macro-uncertainties, particularly surrounding indirect tariff impacts and a weaker US$, have led to reduced Q225 sales volumes and contributed to order delays in the Group’s Controls division. The Group has maintained its market-leading position and, as a result, now expects trading volumes to return to a more typical H2 weighting, consistent with historical trends.
Despite these macro challenges, the Controls division has made meaningful progress in other areas. 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, with Next Gen controls now confirmed in new products at several of the Group’s partner OEMs. As demonstrated by the launch of the Low Cost and Next Generation controls, new product development 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.
As stated in the Group’s FY24 results, Strix’s direct sales into the US are limited to c. £7.0m within the Controls division, with no material sales from Consumer Goods and none from Billi.
Billi continues to perform strongly, maintaining its double-digit growth rates as it gains further traction with customers across its key target markets. This includes strong sales growth in Europe and Southeast Asia, reflecting the success of its ongoing geographical roll-out strategy. In its largest market, Australia, newly launched products in H224 and H125 have been well received and continue to gain momentum.
The Consumer Goods division has performed well, returning to solid growth in the period, following a successful restructure in 2024. 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.
The net debt position continues to be a key priority for the management team. However, in line with seasonality and due to the Q225 macro-driven volume reductions in the Controls division, net debt has increased during the period. Strix has continued to manage cash generation and conservation to mitigate the impact of this and will work to return the net debt position to within the Group’s stated appetite of 1.0-2.0x as soon as possible (FY24: 1.87x).
The Group confirms that a competitive refinancing process has been formally initiated to provide cost effective and flexible funding to support the Group’s medium-term investment-driven growth aspirations. These aspirations will be further supported by the completion of the repayment of the term loan used to finance the Billi acquisition in 2022. Strix has been paying approximately £14.0m on an annualised basis in cash to satisfy this term loan and the final repayment is due in November 2025.
Despite macroeconomic challenges, Strix has continued to drive its medium-term growth strategy, implementing measures to mitigate and minimise the largely uncontrollable impacts of global market volatility. The Group remains focused on managing its cost base and debt position, while balancing investment decisions through the economic cycle, further supported by the completion of paying down the Billi debt and the refinancing exercise. Strix remains well placed to capitalise on a recovery in end markets.
Notice of Results
The Group expects to report its Interim Results for the six-month period ended 30 June 2025 on 30 September 2025. Management will be hosting a briefing for equity analysts on the day of results, for further details, please email: [email protected].
