Strix Share Discussion Threads

[chrisdgb] 09/12/2024 15:44

Surely a sitting duck at 50p................

[value viper] 05/12/2024 13:55

As predicted 8 days agoOur Spanish investor has indeed materially increased

[sid_b] 29/11/2024 19:25

It's strange that the mgmt. keeps saying that the kettle control market hasn't recovered to pre-covid levels, but the market research reports I am seeing all say that the market has been growing. This is very strange. First time, I see something that makes me doubt the mgmt.

hxxps://www.statista.com/outlook/cmo/household-appliances/small-appliances/electric-kettles/worldwide#revenue

[steamer99] 27/11/2024 10:02

whilst waiting for this update they promised I was a little anxious but thankfully not toooo bad.
I'm still good with this stock and optimistic for 25. Still market leader, strong cash generator, divs will return, no debt issues, billi acquisition promises, next gen / new products coming into play. Not sure the China market will move needless much but might help leverage that factory asset to squeeze a bit more margin out the entire piece. Perhaps too optimistic in guidance for a while now. credibility maybe a factor in current price, luckily still a solid business model underpinning. Might top up!

[value viper] 27/11/2024 09:46

LolIt's barely lower

[dr biotech] 27/11/2024 09:32

Another all time low. I know that they can't control the macro conditions, but they got themselves into too much debt and the chinese manufacturing base doesn't look like such a great idea now.

Given the somewhat muted reaction today and the continual fall over the last few months this was widely expected by some.

[value viper] 27/11/2024 08:38

Recent Spanish investor will be peevedExpecting them to increaseSuspect this company's days are numberedU.K. plc on sale

[wad collector] 27/11/2024 08:24

Christ, another profit warning for another lemon in my portfolio....

[rajraj b] 27/11/2024 08:04

In auction?

[edmonda] 27/11/2024 08:02

"Recent trading proves challenging" - new research below

At the time of the interim results in September it was clear that Q3 trading had proven volatile. Unfortunately, this has continued into Q4, with the greatest weakness witnessed in the highest margin areas, compounding the impact of operational gearing. Should the share price decline further as this trading update is digested and test new lows, we feel this presents a strong medium-term opportunity. One should bear in mind that the Group owns one global brand and two premium regional brands (with a desire to distribute globally). The Group’s largest market (kettle controls) is now 20%+ below its previous sales peak in 2019.

Our new estimates (see adjustment to prior expectations on page 2) do not factor in much recovery in FY25. Notwithstanding the downgrades, the Group continues to operate comfortably within its core net debt banking covenant.

We still see material underlying worth in the global (Strix) and regional /premium (Billi/LAICA) brands but lower our current fair value in line with estimate changes to 102p / share.

Link to report:

[albert zog] 27/11/2024 07:39

Another disastrous profit warning

Company has lost its way

Shares will be mullered

[sid_b] 21/11/2024 20:39

Yes you are right Dr Biotech and Steamer... My initial investment thesis was that let's see if they can use their cash-cow (kettle biz.) to invest and grow other related brands... so far they haven't succeeded and in fact their cash-cow itself hasn't performed very well... so let's see... hope to see some progress.

I feel that they have entered some highly competitive markets, where the only advantage they could have is scale using which they can undercut other brands like they are doing with Brita. But there the problem is that they are into health & safety (water filters) where brand and trust matters more than money. This is not going to be easy at all because they have no experience building a B2C brand. They still work more as an engineering firm selling B2B.

I won't be surprised if they eventually realise they can't do B2C so sell all the other businesses. Just build better, smarter kettles and sell through their established channels and use this cash cow to buy back shares rather than buying new companies that don't scale. That could be a better way to build shareholder value,

[dr biotech] 21/11/2024 13:24

They also bought halosource which looks to have been a waste of time and resources. That wasn’t a big outlay though.

[steamer99] 21/11/2024 11:49

Hi sid, thanks for sharing your insights very useful. The China market on the kettle side I believe is the poor margin performer - rife with copies and substandard low cost products, keep eyes on that regulated part which they say is the margin driver. The practical billi view you give is interesting and shows they have work to do if they are to grow it successfully as they hope. they did however aquire it at what appeared to be a great price from what I've read, a little over 3.8 ebitda,so super platform to build from even with some issues overcome, investment payback pretty quick. I do think the management team have to prove they can acquire and continue to grow something outside their core business of kettle. They grabbed laica brand a few years back for water and small domestic appliance market growth, and that space seems to have been disappointing (if only they'd flogged air fryers!)

[sid_b] 21/11/2024 10:56

Hi Steamer99, I would partially disagree with you on the following -
I think the China market and local demand is still struggling; and
Billi is a tough nut to crack, no smart tap has been truly successful yet with scale because they develop snags and parts are quite costly to replace.

Billi Aus had not so great reviews and mostly bad to bad engineers who came to fix the tap. Recently Billi UK have received a lot of great reviews on Trust pilot but most of them are about the good engineers who came to fix the issues. So, the product still develops snags but mgmt. has learnt from Aus and focused on a good field engineers. However, the basic problem of taps breaking down persists. They will have to re-design the product to make it more reliable and with cheaper parts. They can do it but they have not done it yet.

[steamer99] 21/11/2024 09:12

Having a tough time of it at the moment. Some uncertainty in trading within rns update hasn't helped.
Reduced debt, falling interest rates positives. Billi acquisition seems to be performing solidly and was a very well priced acquisition. It's all about the kettle though and it's been a tough period. The air fryer 'revolution' will have had an impact on spend on counter top appliances, that's saturated now, let's hope as market leader they can get some innovative stuff out. Imo undervalued presently but you're right, falling knife territory. I'm convinced it will come back well next year, supported I hope by some solid cash generation and divs.

[dr biotech] 20/11/2024 14:16

It’s pretty much at an all time low. Lower even than when there were some doubts about it being overwhelmed by debt last year. Shows how bad the current sentiment is. May be a good opportunity, but still a falling knife

[chrisdgb] 20/11/2024 09:55

Opportunity after such a pull back........?

[yf23_1] 19/11/2024 17:16

A kettle control - its hardly rocket science is it.

[deanowls] 12/11/2024 14:56

Launched in Spain with a distributor for Billi as per LinkedIn.

[value viper] 31/10/2024 09:39

Correction - fulfilled in part

[value viper] 30/10/2024 16:11

Catalyst 1 fulfilled

[value viper] 29/10/2024 15:27

Indeed - catalyst 1 leave BR alone tomorrow Possibly wishful thinking

[chrisdgb] 29/10/2024 09:10

Painful move back........