Strix Group Plc has moved beyond its legacy as a kettle controls specialist, emerging as a broader, innovation-driven business through bold acquisitions and operational reforms. Its 2022 purchase of Billi Australia has been transformative, driving a 35% revenue jump to £144.6 million in 2023. This acquisition not only delivered an immediate uplift but also positioned Strix for expansion across Europe and the UK, with Billi poised for its UK market launch in early 2025. This cross-continental growth trajectory offers investors a clear path to revenue diversification and scale.
Laica SpA, another acquisition, is delivering returns through enhanced product capability and geographic reach. Laica’s strength in water purification and safety controls complements Billi’s premium water dispensers, forming a platform of synergistic brands underpinned by Strix’s established manufacturing and distribution footprint. These additions have lessened the company’s dependence on traditional product lines and single markets, shielding it from economic fluctuations and sharpening its competitive edge.
In parallel with acquisition-led growth, Strix has delivered on a crucial investor concern: debt. The group reduced net debt by £20 million to £63.7 million in FY2024, cutting its leverage ratio to 1.87x – comfortably within its target range. The company also executed an £8.7 million equity raise and realised a 12% reduction in interest payments. As a result, it secured a 50-basis-point reduction in interest rates, creating additional financial headroom.
Operationally, Strix is leaning into efficiency. By relocating production to China and exiting underperforming product lines, it has improved gross margins and streamlined its focus. These moves not only cut costs but also position Strix to fund growth without overreliance on external capital, a compelling trait for long-term investors.
Future value creation is also taking form in the return of dividends. Strix intends to resume payouts in late 2025 at 30% of adjusted pre-tax profits. With FY2024 adjusted profits at £18.7 million and strong momentum into 2025, this signals restored confidence and a shareholder-centric capital allocation strategy. For income-focused investors, the upcoming dividend restart could act as a re-rating trigger, bringing new attention to a stock that has slipped under the radar.
Despite delivering tangible improvements, Strix shares are down more than 11% year-to-date. Yet sentiment is shifting. Market algorithms now identify the stock as undervalued, supported by improving fundamentals and a clear growth narrative. Key catalysts lie ahead, including Billi’s European rollout, the UK launch, innovations in low-cost appliance solutions for emerging markets, and further deleveraging. Each of these supports a revaluation story that many investors have yet to notice.
Strix is undergoing a structural reset – one that combines smart acquisitions, operational focus and financial discipline. With a dividend return in sight and profitable growth drivers lining up, the company presents a strong case for medium- to long-term investors seeking underappreciated value in the industrials space.
Strix Group plc (LON:KETL) is a global leader in the innovation, design, manufacture and supply of kettle safety controls, heating and temperature controls, steam management and water filtration technologies.
