Strix Share Discussion Threads

[pottsypotts] 02/10/2023 19:48

Looks like someone has faith in them at this price bought 4% today

[wad collector] 28/9/2023 14:12

Only a 2% increase in his holdings, don't think that is a decision to be noted!

[shaker45] 26/9/2023 02:00

At least CEO has skin in the game - and adding about £40k to his £1.5m+

[chrisdgb] 25/9/2023 12:25

Nice, sensible comments Matt, appreciate the insight...

[thorpematt] 25/9/2023 12:21

I have done some maths on this. I doubt it will need placing.

It should edge past the pinch point, represesented by the convergence of the covenant coming down to 2.25x and the interest rates going up. There's qute a big drop on the agreed term loans once below 2.5x (.65%) so that will help. If the SONIA rate is at or near peak things should be OK!

Controls division is strange in its fluctuation. On the one hand kettles are "essential" on the other they are "consumer discrectionary" (depends on if you are having a new kitchen for some, in leaner times it depends if its broke....in even leaner times it depends if you are!). The dynamics (along side the C19 wipsaw and UKR/RUS thing, makes a real mess of forecasting.

Strix were always reliant on the cash machine and they thought the 3.8x EBITDA purchase of a high Q business like Billi was a no brainer. In fairness it was. But debt control in this environment is everything and Mr. Market has punished the share price

I have priced in a lacklustre growth dynamic in my fair valuation model (instead of the management view). This gives me a "poor-case-scenario". From there I calculated a fair value of 96p and a divi of 3p for the forseeable. The discount the market is presently giving is a wide margin of safety in my view. It has lost confidence in the BoD.

Should the management hit their targets, the debt comes down reasonably quickly and then at least 2 of the 3 segments looks high quality....but we'll worry about the upside when we come to it.

In the meantime it is worth noting that in some respects the Controls divi and Billi fit into the category of "a business that any idiot can run" (I will let others on this BB throw the isults that come to mind). FWIW I am giving the BoD the benefit of the doubt...for now.

[mr hangman] 22/9/2023 16:07

One would imagine he will have to take part in the placing, he will have to
buy more then 50/-, to get II's onboard

[lovewinshatelosses] 22/9/2023 14:41

When you put it in that context...I take your point.

[mr hangman] 22/9/2023 14:06

Yes Mr Bartlett sold 700,000 @ 234p he could of at least bought these back..

Over the last few years I bet he has presented at one of your Melo Pizza do's David ?

[davidosh] 22/9/2023 13:39

A director buying shares is not quite so impressive when it adds only 2% to your existing holding though....


Strix Group Plc (AIM:KETL), the AIM quoted global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, has been notified that Mark Bartlett, the Chief Executive Officer has purchased 51,732 Ordinary Shares of GBP0.01 each ("Ordinary Shares") respectively at a price of 57.7 pence per Ordinary Share.

Following this purchase, Mark Bartlett is beneficially interested in a total of 2,676,762 Ordinary Shares.

[lovewinshatelosses] 22/9/2023 13:26

Blimey! Ten minutes after my post, a director buy is confirmed. Good. Hopefully a few more BOD buys will follow. GLA.

[lovewinshatelosses] 22/9/2023 12:32

I mentioned yesterday that I was surprised at how bad the results were. Especially the rising debt levels. The latter took me by surprise.
I like this company and I have been a holder a few times.
Anyway, I have kept watching to see what TR-1's come out. Given the trading volume yesterday, it seems inconceivable that there will not be some. I had also hoped to see some Director buying too. Maybe that will follow soon.
It looks like a traders play here for the time being, IMO.
I hope the company can get things back on track by the next update. Especially cutting that debt pile. I personally would have rather that they had cancelled the dividend, rather than cutting it to a pittance, because as things now stand, I assume they will have lost a lot of pure income investors anyway, (although I might be wrong) so could instead have used that cost saving towards debt repayment. Not a huge amount of money, I know, by IMO it would have shown a positive statement of intent.
GLA and I hope current investors that are underwater get back into profit here soon.

[martindjzz] 22/9/2023 10:20

Having sold out in 2021 I have been watching Strix for more than a year pondering possible re-entry. I presume the final dividend will also be cut substantially to help with debt reduction and can’t see a near term catalyst for a big re-rating from today’s level. A post-results DirectorsTalk “interviewR21; with Mark Bartlett dropped in to my Inbox this morning. Sadly the interviewer got nowhere near asking any searching questions, and the headline was “Strix Group strong results proves Billi acquisition a good fit”. Do companies pay DirectorsTalk for the propaganda platform?

[pugugly] 21/9/2023 21:21

Looks like those late marks were sells - Question? Late sells after market closed or late marks from earlier in the day?

[ggrantsu] 21/9/2023 20:05

and the cfo...just utterly and totally clueless. almost felt sorry for her...literally just reading from the presentation like it was an instruction manual. There isn't many times in life when I refuse to buy in after a drop like this...but my god, today's management call had to be one of the most pathetic things a corporate has ever delivered. no contrition, not a clue what is going on, and divisions in the business down 20% yoy vs. weak comps. unbelievable.

[ggrantsu] 21/9/2023 20:02

also...this ceo sold an absolute ton of shares at 3.20...

could not make it up...and his quote today 'we are miles below the covenants' hahahaha...honestly that has to be one of the most fantastic quotes I've ever seen by a management team. Just brilliant.

[ggrantsu] 21/9/2023 20:01

yes - but clearly it isn't q3 which is the risk is it...its when when the covenants further tighten next year and there is no sign whatsoever of performance improving at all. It's a really shocking shocking destruction of value going on here....

[deanowls] 21/9/2023 17:32

Grant, q3 is next week. I’d guess they know whether it will be breached, their forecasting is rubbish but not that bad. He also clearly indicated this in the presentation when directly asked.

[ggrantsu] 21/9/2023 16:07

yeah of course it will - company is only on the verge of a covenant breach. what planet are you on?

[bossonmad] 21/9/2023 16:00

Look out for the aftermarket late trades. This will spike up tomorrow

[ggrantsu] 21/9/2023 16:00

The best comment in Q&A was from CEO: 'we are miles away from breaching a covenant...'

what planet is he on?! it is tightening at the end of this quarter!!!!!!!!!!!!! one of the most shocking management teams ive ever seen. and he sold of course at 3.20!!!!!!

[pugugly] 21/9/2023 14:54

Babbler - Many thanks - Interesting .

[kalai1] 21/9/2023 14:42

Strix Group plc posted Interims for the 6 months ended 30th June 2023 this morning. The Group reported revenue of £65.2m an increase of 28.6%, adjusted EBITDA was £15.6m a decrease of 1.9% versus the same period in prior year, adjusted PAT was £5.7m, a decrease of 50.9% versus the same period in prior year (£11.9m) mainly attributable to interest and finance fee costs due to an increase in the net debt to fund the Billi acquisition and a higher interest rates environment. Net debt increased to £93.1m (FY 2022: £87.4m) due to the strategic acquisition of Billi, this represented a net debt/adjusted EBITDA ratio of 2.66x. Valuation looks attractive with forward PE ratio at 7.2x and dividend yield nearly 7%, but share price remains in a 2-year correction and lacks positive momentum accordingly. Monitor for now...

...from WealthOracle

[melody9999] 21/9/2023 14:36

a lot of jam tomorrow on the presentation