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, today provides an update on trading and an upcoming management change.
Trading update
Further to the change of financial year end from 31 December 2025 to 31 March 2026 announced on 30 September 2025, the Group delivered revenue of £64.6m, net debt of £70.3m (as defined in our banking facility agreement) and net debt leverage of 2.5x, for the 6-month period ended 30 September 2025. These figures are to be used as comparators for future reporting periods.
As previously noted, macroeconomic and geopolitical headwinds, particularly indirect tariff impacts and a weakening US dollar, contributed to a marked slowdown in the Controls division in Q225. Conditions partially stabilised in Q325, and following recent discussions with key customers and partners at the Canton Fair, suggest early indications of improvement emerging in Q425. This is despite activity levels in South Africa, Turkey and US markets remaining slower than expected. With tariff-related disruption beginning to ease, the Board anticipates that this trend will continue to build into Q126.
The Group has always maintained a focus on retaining its Controls market share via the regular introduction of enhanced technology and more cost competitive products. This is demonstrated by the recent launch of the lower price point Low-Cost and Next Generation controls, which are solutions enabling the Group to expand into additional market segments, defend market share against copyist manufacturers and increase Strix’s overall addressable market. In the current period, the division continues to experience higher activity from copyists, with several actions being taken to further protect Strix products and IP.
Elsewhere in the Group, Billi has continued to deliver a strong performance, reporting double-digit growth rates (at constant exchange rate), and the geographical rollout strategy has continued to progress, gaining traction with new customers in key markets. The division’s new HQ site in Australia, with a new enlarged manufacturing facility, is now operational.
Following its restructuring last year, the Consumer Goods division has returned to growth. Product manufacture in China for its leading global baby brand customer continues to be rolled out, and additional products were launched in the period as expected. While the Small Domestic Appliance market continues to experience high levels of volatility, a number of important operational and product innovation initiatives were delivered that have strengthened the division’s competitive position and broadened its product offering, which are expected to support ongoing sustainable growth.
Assuming the post-tariff improvement in the financial performance of the Controls division experienced in October and November continues to build, the Board believes the Group is trading broadly in line with market expectations for the financial period ending 31 March 2026 (“FY26”).
Accelerated debt reduction programme
Over the last two months, the Group has made substantial progress on its accelerated debt reduction programme, initiating a number of key actions to enhance working capital efficiency. This includes a significant restructuring of planned production volumes in its China factory aimed at reducing inventory on hand by c.£8m over the last six months of the financial period. The Group has also successfully put in place extended non-recourse debt factoring in its Italian operations, bringing average debtor balances down by c.£2m. In addition, the Board has decided to cancel the final dividend proposed for FY24, which was due to be paid in December 2025, to further support the Group’s focus on reducing the net debt position.
Supplementing these direct actions, the business has continued to maintain careful control of operational and capital expenditure. This close focus on cash generation and conservation will continue to roll out into 2026, further assisted by ongoing post-tariff recovery in the highly cash-generative Controls market. The Group is pleased to report that the final Billi acquisition loan repayment will be made on 28 November 2025. This brings to an end the £14m per annum amortisation that the Group has been paying over the last three years and thereby freeing up funds to reduce RCF borrowing levels. To further accelerate debt reduction and in recognition of the current market capitalisation, the Board is assessing a variety of operational and corporate actions to enhance stakeholder value.
The above measures, alongside ongoing supportive and open dialogue with the existing lending group, will allow Strix to maintain cost effective funding and pave the way for a successful future refinance process. The Board has set a target to reduce the Group’s net debt leverage to c.1.5x in the next 12-18 months, while also managing and minimising the impact of global volatility in the short term. The Board looks forward to providing further details on the Group’s progress towards this important goal in future updates.
Management change
The Company announces that Mark Bartlett will step down by mutual agreement as Chief Executive Officer and a Board Director with effect from 29 May 2026. Mark joined Strix in 2006 and has served as CEO since 2015.
The Company has initiated the process to recruit a new CEO, which is being led by Gary Lamb, Chairman. A further announcement will be made, as appropriate, in due course.
Commenting on the Group’s trading, Mark Bartlett, CEO of Strix, said:
“While market conditions have remained challenging, we are pleased to see early indications of improvement in the Controls division. Billi continued to deliver a strong performance and the Consumer Goods division returned to growth following its restructuring last year. Alongside this, we have made substantial progress on our accelerated debt reduction programme and are targeting to reduce net debt leverage to c.1.5x in the next 12-18 months.”
Commenting on the management change, Gary Lamb, Chairman of Strix, said:
“On behalf of the Board, I would like to thank Mark for his contribution both as a member of the Strix Board and to the wider Strix business for almost 20 years. We wish him all the best for the future.”
