Strix Share Discussion Threads

[stevenlondon3] 29/3/2023 07:37

On a PE of eight and improved outlook, getting the debt down is the big thing for 2023. Generated cash last year so should not be a problem. Mr Market is such a fickle mistress but down would seem to be very harsh.

[edmonda] 29/3/2023 07:33

With FY22 now firmly in the rear-view mirror, Strix Group plc is looking forward with more optimism. China is re-opening for business following several COVID-related lockdowns and green shoots have begun to appear. Sales to OEMs have seen a substantial improvement in run-rates during the first two months of FY23 and, while a swallow does not make a summer, we see positive signs, not least the possibility that a recession may well be averted in Western economies. A combination of product launches, the acquisition of the high margin Billi and a cross fertilisation of sales between the consumer brands augurs well for FY23.

We expect FY23 to represent an inflection point for the Kettle Controls business. In the YTD, green shoots have appeared, with sales to OEMs rising 18% versus Q4 (which represented a low point in FY22). As COVID-related restrictions have been lifted in China, we expect revenues to improve further as bottlenecks are removed and trading returns to normal patterns. A combination of product launches within Water/Appliances/Billi, new listings (online and retail), and a cross-fertilisation of sales within the wider consumer areas is expected to result in strong growth in revenues and profitability.

Our comparative valuation models suggest that Strix Group is trading on the lowest FY1 EV/EBITDA and PER multiples within its peer group. Our fair value estimate of 216p/share is backed by a conservative DCF model and represents a significant uplift on the current share price. Even following the dividend cut, the FY1 yield amounts to 7.1%, with dividend growth slowing to reflect a desire to reduce indebtedness (we estimate the net debt/EBITDA ratio declining to 1.8x in FY23).

[chrisdgb] 29/3/2023 07:30

I think up, outlook sounds better.....

[rcturner2] 29/3/2023 07:29

In a bad year the eps is 10p and the dividend is 6p, so the shares are not expensive.

The main thing is whether they can get back to growing the business in 2023.

[pugugly] 29/3/2023 07:23

Results out - 1st take:- All KPI's down including dividends - Debt as already announced up
Only positive statement "recent sales data in 2023 indicates some green shoots are appearing and the path to a return of growth is opening across all segments."

However management are a conservative bunch so may not be as bad as initial take.

Suspect may open down - but what do I know!!

[lovewinshatelosses] 28/3/2023 13:27

Back in for a few too. Probably would have been more sensible to wait until after tomorrow's RNS, but hey ho. GLA and here is hoping for an update that gets this back to a quid (or more, if we are being greedy!)

[lawson27] 10/3/2023 14:48

Back in with 10 large on the dip @91.8, looking for a rise to the presentation and on, GLA

[edmonda] 09/3/2023 10:53

The Strix management will be presenting to investors on 31st March - Equity Development are hosting the webinar and will direct questions in the Q&A session to Mark Bartlett & Raudres Wong. Hope that helps

[weaverbeever] 08/3/2023 08:31

What does equity development presentation mean?

[chrisdgb] 27/2/2023 16:13

Yes, nice looking move........

[pottsypotts] 27/2/2023 16:04

Fingers crossed we are on a breakout

[mister md] 16/2/2023 10:49

Bought in at 97p this week after having had it on my watchlist for a while.

[simmsc] 09/2/2023 23:59

Welcome to the party Darrin :-)

[cumbrian2] 09/2/2023 16:55

Last top ups here for me today. Hard to see it not double from here on a two year view and a decent yield by the end of that time period. Bili looks a good acquisition with potentially strong growth as the move to this type of ''Quooker'' tap goes from strength to strength in the near term. Shouldn't be too many sleepless nights with this one.

[cyberbub] 09/2/2023 15:47

Short closing should have supported further rises, not a drop of 5%?

[rcturner2] 09/2/2023 15:44

Short closing may have pushed the price up a bit. The 1M trade could easily have been a short closing.

[darrin1471] 09/2/2023 14:49

I cant see the 1m trade but I have seen a lot going through above 104 this week.
Would not be surprised to see a spike down to take out stop-losses before further recovery.

[cyberbub] 09/2/2023 12:55

Big 1M trade at 105p gone through, delayed by a day from 8th Feb. It must surely be a buy, there weren't enough trades above that price to be offsetting sells? What do people think?

[darrin1471] 09/2/2023 12:05

Bought in today on the drop. I had hoped to buy in lower at the last trading update.

[simmsc] 08/2/2023 21:29

Shorts reduced on KETL from 0.77% down to sub 0.5%

[glavey] 08/2/2023 02:29

I think time for a cuppa and watch the next leg down.

[mr hangman] 07/2/2023 13:09

I can see this testing the 115p, placing price in the next week or so

[masurenguy] 06/2/2023 13:28

Seems to have now consolidated above 100p, which should now be support.

[cyberbub] 05/2/2023 12:03

Hopefully they will pay down a good chunk of that debt during 2023 as they promise...