Strix Share Discussion Threads

[bend1pa] 21/9/2023 14:17

Last March CEO Mark Bartlett said with the final results:

“Strix will prioritise debt reduction and free cash flow generation, with a clear plan to get net debt-to-EBITDA to below 2.0x during 2023, and to below 1.5x during 2024."

Prioritise debt reduction, eh? What BS is that. Net debt increased from £87.4m (2022 finals) to 93.1m, net debt to EBITDA now up to 2.66.

So yet again, a classic example that you can never trust a word that top management say.

[wad collector] 21/9/2023 14:05

Just added at 57. It is being priced as a basket case , I think it is a reasonable punt.

[epo001] 21/9/2023 13:42

Having pondered it I have doubled the size of my limit order and lowered my price to 42p. This will languish for a while but I expect it to come good, I will try and take advantage of short term volatility. If the price starts to decline then I will keep an eagle eye.

[babbler] 21/9/2023 13:29

https://www.equitydevelopment.co.uk/news-and-events/strix-fypresentation-21sept2023

[pugugly] 21/9/2023 13:03

Babbler or anyone - Can you advise link to presentation?

[albert zog] 21/9/2023 12:56

The company will breach its covenants with one minor warning … covenants tighten next year as well

Debt will kill the equity story

[glenowen] 21/9/2023 12:17

Expected full year post tax profits of £21m versus a market capitalisation of £114m suggests good value to me. But can the company be trusted with its forecasts?

[babbler] 21/9/2023 12:01

Presentation at 2pm. Should bounce hopefully then. Place your bets.

[spwh100] 21/9/2023 11:52

Brucie5 "Out of interest, when you cut off your arm, does it make your face any happier?
Asking for a friend."

Typical remoaner runt. Grow up you pathetic child

[the codger] 21/9/2023 11:49

The debt is f@@k all.sound company

[mr hangman] 21/9/2023 11:46

Its all Brexit fault.., wars in Ukraine,Covid19,Global warming,Strix Dividend cut, Russell Brand, the list just goes on & on

[dr biotech] 21/9/2023 11:38

Shares in Strix Group PLC (AIM:KETL) melted 42% to 52.3p after it reported a large fall in first-half earnings and cut its dividend as a recent acquisition pushed its debt ratios higher.

Revenue of £65.2 million was up 28.6% year on year, helped by the £38 million purchase of instant-boiling and sparkling-water taps manufacturer Billi in October 2022 offsetting a reduction in organic sales, particularly in kettle controls.

Profit after tax declined 51% to £5.7 million in the six months ended 30 June 2023, mainly attributable to interest and finance fee costs due to an increase in the net debt to fund the Billi acquisition amid the higher interest rates environment.

The company expects full-year adjusted profit after tax to be in excess of £21 million, compared with the Bloomberg consensus of £25.9 million.

Strix cut its interim dividend to 0.9p from 2.75p last year, noting that the increase in net debt due and high interest rates meant it "continues to take precautions to balance the capital allocation priorities".

Broker Shore Capital said it saw a risk of a further cut to forecasts and puts its rating under review, though said it does not expect debt covenants to be breached.

"We expect net debt to remain within the 2.75x covenant threshold. The company delivered £15.6m in H1 and would only need to deliver EBITDA roughly in line with H1 in the second half to be within the limit if net debt remains close to £87m (we expect some reduction in net debt)."

Analysts at Stifel said the results were disappointing too and reduced its full year forecasts "materially".

"There is a lot to digest here, and the weak near-term news is likely to dominate the initial reaction, but the group is working hard to secure a sustainable base for long-term expansion, building on the foundations created through years of heavy investment in the core business, and the strategic acquisition of Billi (which is trading strongly, with its integration into Strix on track)."

[brucie5] 21/9/2023 11:13

spwh10021 Sep '23 - 11:09 - 1092 of 1092
0 0 0
Good God, EU butt-lickers, don't you just luv 'em
-----------------------------------------
Out of interest, when you cut off your arm, does it make your face any happier?
Asking for a friend.
;)

[spwh100] 21/9/2023 11:09

Good God, EU butt-lickers, don't you just luv 'em

[babbler] 21/9/2023 10:34

You missed that price earlier. Hit 51 to buy

[mister md] 21/9/2023 10:31

"We have reduced FY23 and FY24 estimates, including the dividend. However, the medium-term objectives suggest strong upside in revenue and profitability to FY26.

We have reduced our fair value / share to 180p (vs 216p) to reflect the slower recovery in FY23."

Lol.

[the codger] 21/9/2023 10:23

Looks promising

[epo001] 21/9/2023 10:19

Have a limit buy at 52.5 to increase my holding by 50% while I digest the RNS. Billi may have been unwise and recovery may take a year or two but it seems the issue here is debt not, apart from an acquisition too far :-(, a badly run business.

Profits may be down but they are still profits.

[mister md] 21/9/2023 09:50

Wow, less than a year ago they did a placing at 115p for the Billi acquisition ...

[pugugly] 21/9/2023 09:41

Buys being marked as sells.

[edmonda] 21/9/2023 09:37

Tough update from Strix (LON:KETL) today as profitability has declined on all measures.

- customers ordering frequently but in lower volumes

- dividend reduced to focus on reduction of debt

- The £6m reduction in Kettle Controls EBITDA offset the £5.2m contribution of Billi.

There is a CMD to accommpany results and this includes several new strategic objectives, with a plan to the end of FY26. The goals are:

- an uplift in revenues between FY22 and FY26 of 93% to £206m

- gross profit to £80m, equating to an unchanged margin of 38.8%.

Full note here:

[mr hangman] 21/9/2023 09:35

Another Re-moaner who cannot move on..