Strix Share Discussion Threads

[bothdavis] 07/10/2022 17:56

If you hold shares in this company , you have two options;

Trust the board to continue their good work ....so you hold,

Don't trust the board.....so you sell.

My all the eroneous waffle from people?

[giltedge1] 07/10/2022 14:39

The Graph says it all a falling knife .....

[melody9999] 07/10/2022 12:39

Hmmm - below placing price now.

I'm wondering if this acquisition could mark the turning point in the downward price trend. I think our CEO must have had this or another acquisition in mind when he remained bullish on the target to double revenue in 5 years.

[edmonda] 07/10/2022 09:24

An opportunistic and strategic acquisition (new research note - free & accessible)


Strix’s announcement of their conditional purchase of Billi is another example of the management’s ability to identify acquisitions that are both good value and make excellent strategic sense. The group has been eyeing the multifunctional tap market for some time. Not only does the merger widen the group’s product portfolio, but it additionally brings in new markets – not least into commercial offices. We also expect the strong cash flow from Billi to result in a rapid deleveraging of the Group. We note the Directors’ subscription in the placing, amounting to £0.37m.

Significantly, the merger presents an opportunity for targets in the Group’s five-year plan to be met a year early, but for now we conservatively hold our financial estimates and Fair Value per share, with the latter now at a significant premium to the current price.

Link to full note:

[dr biotech] 06/10/2022 19:04

Raudres is an unusual name, a Google search reveals few others apart from Ms Wong. Chinese people often give themselves English names to help with communication, perhaps she made that up to be near unique?

[thorpematt] 05/10/2022 20:35

Bazzer,
You're not wong. She is indeed not a Mr.

She always strikes me as extremly competent FWIW. Very often on presentations it is just Mark Bartlet and Raudres Wong.

[bend1pa] 05/10/2022 20:34

Ms. Wong definitely listed as a Mr. here. Morningstar must have got it wong.

tinyurl.com/bdcu3z45

[bazzer1000] 05/10/2022 18:46

Isn't Raudres Wong a lady?

This is from the Strix website:-

'Chief Financial Officer
Raudres joined Strix in 2011 and is responsible for financial management. She has over 25 years of international experience in corporate finance, business management and mergers and acquisitions. She has worked in Toronto, Japan, Beijing and Hong Kong for multinationals such as IDT International Ltd, Nortel Networks Inc., Level 3 Communications Inc., Nike International Ltd, ASSA ABLOY Ltd, holding senior finance and strategic planning positions. Raudres has a BComm and MBA from McMaster University and qualified as a Chartered Accountant in Canada.'

And she is taking part in the placing (along with some of the other directors).
This is from the RNS:-
'Raudres Wong(1)

CFO

1,890,417

0.91%

£100,000

[bend1pa] 05/10/2022 16:15

"CFO seems happy to put in more £100G so 'she' must see it working out."
-------------------------------------------------------------------------------
The CFO is a Mr Raudres Lourdes Wong. And I can't see any recent directors buying mentioned anywhere.

What is your source for the above?

[gary1966] 05/10/2022 15:11

More confused how they state the fund raise is £10m and then raise an extra £3m they don't need to add to dilution at low price.

[bazzer1000] 05/10/2022 12:41

CFO seems happy to put in more £100G so she must see it working out.

[dr biotech] 05/10/2022 12:16

Sounds like a decent buy if their sales aren’t about to tank.

Debt is mentioned, not sure how they plan to deleverage? Presumable hold less stock amongst other things.



-- Expecting net debt as at 31 December 2022 to be approximately 1.9x Strix's 2022 pro forma adjusted EBITDA, with strong deleveraging thereafter to c.1.4x by end of 2023

[elsa7878] 05/10/2022 11:30

Bit surprised by this. £61 million of debt a half year plus earn out and dividend = £70 million and now add another £30 million after the fundraise. Taking it to approx £100 million. At a time of recession and rising interest rates....Sensible?

[gary1966] 05/10/2022 08:01

Forward selling taken place that has greatly exasperated the fall in share price here of late?

[babbler] 05/10/2022 07:48

and a nice Aquisition

[brucie5] 05/10/2022 07:44

£10m cash raise.

[melloteam] 29/9/2022 13:27

FREE RESULTS ROUND UP

Just to let shareholders and prospective investors know that KETL will be discussed in the Results Round Up at the Results Round Up Webinar at 2pm - 6.30pm on Thursday 29th September 2022. .

The programme is as follows:

2.00 pm David Stevenson discusses The Small Cap Discount : Opportunity Knocks with David Stredder
2.30 pm Company presentation by Fintel
3.00 pm Results Round-up from Graham Neary
3.30 pm Company presentation by Brave Bison
4.00 pm Company presentation by Avation
4.40 pm Company presentation by TPFG
5.00 pm Results Round-up from Mark Simpson including the Good, the Bad and the Ugly
5.30 pm Company presentation by S&U

The event is FREE and there will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

[elsa7878] 28/9/2022 23:01

Did no one watch the investor presentation?

Very reassuring.

[gary1966] 28/9/2022 18:40

Pretty good day here, all things considered. Shame about the previous 5. Gap on chart at 138.6p may be an initial target.

[brucie5] 22/9/2022 10:44

Thanks Edmonda. I fully expect £1 to be a significant line of resistance, as it usually is. This remains afaic a great niche business with an IP moat and a dividend. So for me it's a question of the right price at the right amount of risk.
What do we make the prospective dividend now?

[edmonda] 22/9/2022 09:06

#KETL - signs of recovery emerging in China (new research note) - full link here:

In a challenging period for Strix it has successfully grown both its Appliance and Water Categories, while taking measures to mitigate a slowdown in Kettle Controls. Historically, the Group managed a rapid turnaround in its Kettle Control revenues as discretionary spend rebounds. We think this period will be similar, with Chinese demand picking up in Q3 ‘22 and OEM backlogs set firm into Q1 ’23. Whilst there is undoubtedly pressure on disposable income across the world, a combination of numerous product launches across several platforms, price increases, and a rationalisation of the cost base should limit the pressure on profitability. Nonetheless we have reduced adj. EPS estimates by 12% in FY22 and by 6% in FY23.

The stronger H2 bias to trading should result in a recovery of revenues in the remainder of the year, aided by the combination of the price increases, product launches, rationalisation benefits, and the rebound in Chinese demand. The share price currently stands at a lower level than in the depths of the COVID-19 lockdown uncertainty and since 2018. Based on our new estimates we have updated our DCF and several peer group comparison valuation models. The average suggests a fair value of 236p, which stands at a significant premium to the existing share price (+102%).