Strix Group (KETL) Trading Update summary

Financial performance and outlook

• Adjusted profit before tax for FY 2024 expected to be in line with market expectations.

• Cash generation in H1 2024 exceeded expectations, aided by cash conservation and a 5% equity placing.

• Net debt leverage reduced to below 2.0x as of 30 June 2024, with a target of 1.5x by end of FY 2025.

• Early leverage reduction secures interest savings and supports upcoming refinancing discussions.

Operational highlights

• Kettle Controls market shows promising recovery as peak season approaches.

• New low-cost controls for the Chinese and less regulated markets to launch in H2 2024.

• Premium Filtration Systems division delivered single-digit growth in H1 2024; double-digit growth targeted for FY 2024.

• Restructuring initiatives are improving efficiency, sustainability, and cost control.

Market and risk management

• Exposed to commodity price volatility, especially copper and silver, and foreign exchange headwinds.

• Mitigation efforts include closer supplier collaboration, product mix improvements, and advanced commodity contracts.

• Full refinancing of banking facilities planned by end of 2025 to support growth ambitions.