Strix Group (KETL) Trading Update summary

Trading performance and market conditions

• Kettle Controls division saw continued weak trading in Q3 and Q4 2024, especially in regulated markets, with no underlying improvement in consumer demand during the peak season.

• Strix maintained stable market share despite challenging macroeconomic and geopolitical conditions, particularly in the UK, Germany, and US, which are high-margin markets.

• Cost price inflation and cautious discretionary spending, especially around the UK Autumn Budget, impacted performance.

Product and divisional developments

• New low-cost kettle control launched in less regulated markets, with sales starting in China in H2 2024.

• Production of next-generation controls is progressing, with OEM qualification underway for 2025 launches.

• Billi division achieved increased sales in Europe and is expected to return to double-digit growth in Q4 2024; new products are gaining traction in Australia and set for UK launch in H1 2025.

• Consumer Goods division revenue in H2 2024 is expected to be broadly in line with last year, with new retail contracts secured for 2025 and manufacturing for a leading baby brand underway.

Financial outlook and strategic actions

• Adjusted profit before tax for FY24 is expected in the range of £18m to £19m on a constant currency basis.

• Significant balance sheet progress and restructuring have enhanced resilience and flexibility.

• Net debt leverage is around 2x, and management intends to reinstate the FY24 final dividend for payment in 2025.

• Senior leadership has been strengthened across treasury, Billi, and commercial teams to support long-term growth.