Strix Group (KETL) investor relations material

Executive summary

• Leadership transition with Andy Rainforth appointed CEO following Mark Bartlett's departure, aiming for a step change in leadership, market engagement, and commercial focus.

• The business completed a year of transition, including a change in financial year-end to March, covering a 15-month period to better align with market seasonality and improve forecasting accuracy.

• Sale of Billi division for GBP 110 million (three times original investment) strengthened the balance sheet and enabled a net cash position.

• Focus now on core Controls and Consumer Goods divisions, with renewed management attention and investment capacity.

Financial highlights

• Group total revenue increased 6.2% to GBP 153.2 million for the 15-month period, mainly due to the longer reporting period.

• On a comparable 12-month basis, continuing revenues declined by 12.8%, driven by a 24% drop in Controls division revenue.

• Consumer Goods division achieved 12% year-over-year revenue growth, especially in bespoke water filtration and appliances.

• Profit before tax was GBP 10.1 million, within forecast range.

• Net cash position improved to GBP 38.7 million at period end, reversing prior net debt.

• Operating cash conversion reached nearly 120% for the period.

• Gross margin decreased by 590 basis points, mainly due to Controls division challenges.

Outlook and guidance

• Positive momentum entering the new year, with Controls volumes stabilizing and new product launches aiding market share recovery.

• Consumer Goods division continues to focus on higher margin routes and operational improvements.

• Cost optimization program on track to deliver at least GBP 2 million in annual savings, with further opportunities identified.

• Comprehensive commercial and strategic review underway, with outcomes to be shared at a Capital Markets Day later in the year.

• Comprehensive capital allocation framework and refinancing of debt facilities planned.