Strix Group (KETL) Trading Update summary

Trading performance and market conditions

• Revenue reached £64.6m for the six months ended 30 September 2025, with net debt at £70.3m and net debt leverage at 2.5x.

• Macroeconomic and geopolitical headwinds, including tariffs and a weak US dollar, slowed the Controls division in Q2, but conditions began to stabilize in Q3 with early signs of improvement in Q4.

• Billi division delivered double-digit growth and expanded its customer base, with a new HQ and manufacturing facility in Australia now operational.

• Consumer Goods division returned to growth post-restructuring, launching new products and strengthening its competitive position.

• Trading is broadly in line with market expectations for the period ending 31 March 2026, assuming recent improvements continue.

Debt reduction and financial strategy

• Accelerated debt reduction actions included restructuring China production to cut inventory by £8m and extending non-recourse debt factoring in Italy, reducing debtor balances by £2m.

• Final dividend for FY24 was cancelled to support debt reduction.

• Final Billi acquisition loan repayment will be made in November 2025, ending £14m annual amortisation and freeing funds to reduce RCF borrowing.

• Target set to reduce net debt leverage to approximately 1.5x within 12-18 months.

• Ongoing focus on cash generation, operational efficiency, and stakeholder value enhancement.

Management change

• CEO Mark Bartlett will step down by mutual agreement effective 29 May 2026, after nearly 20 years with the company.

• Recruitment for a new CEO is underway, led by Chairman Gary Lamb.

• Board expressed appreciation for Mark Bartlett's long-term contribution.