Strix Group (KETL) H2 2024 earnings summary

Executive summary

• 2024 featured restructuring, strategic hires, and investment in key projects to drive medium-term profitable growth.

• Adjusted profit before tax reached GBP 18.7 million at constant exchange rates, within guidance.

• Net debt reduced by GBP 20 million to GBP 63.7 million; leverage at 1.87x, within target range.

• Billi division returned to double-digit growth in Q4 2024 after new product launches and expanded into Europe and the U.K.

• Planned reinstatement of FY24 final dividend in December 2025, alongside FY25 interim dividend.

Financial highlights

• Adjusted revenue grew 1.3% year-over-year to GBP 145.7 million at constant currency.

• Gross margin decreased by 230 basis points year-over-year to 37.5%.

• Adjusted EBITDA margin just under 25%, with EBITDA at GBP 35.7 million.

• Adjusted profit before tax declined 16.3% to GBP 18.7 million; cash conversion improved to 114%.

• Net debt leverage reduced to 1.87x, with significant headroom under new 2.75x covenant.

Outlook and guidance

• Board remains confident in the outlook, with full-year expectations unchanged.

• Billi's double-digit growth expected to continue into 2025, with strong product uptake in core markets.

• Consumer Goods division positioned for profitable growth and innovation.

• Controls may see Q2 sales deferred to Q3 due to macro uncertainties.

• Continued measured investment approach, focusing on essential new products and strategic initiatives.