Strix Share Discussion Threads

[masurenguy] 30/8/2018 15:25

Graham Neary's view: Another share on my watchlist for a future purchase, I'm encouraged by this new partnership.

The Company and its partner will focus on developing a new appliance that will produce a single cup of high quality coffee using Strix's patented technology, in particular benefitting from Strix's knowledge and expertise in relation to temperature accuracy and method of water dispense. Sounds great! The partner is a "is a leading global consumer product company" - that's a bit vague, but we can imagine who it might be in terms of major coffee companies. Strix has primarily been associated with kettle controls for tea production. This could prove to be a super strategic move into a new market. The StockRank is 88. Barely been listed a year, so "IPO risk" might be the main thing to worry about.

[hastings] 30/8/2018 09:41

Yes very positive news this morning further evidence of growth potential, happy to hold.

[trident5] 30/8/2018 09:23

Good article on Strix here (a couple of days old):

[masurenguy] 30/8/2018 09:19

Good news - I made a small top up today !

[sstanford] 30/8/2018 08:46

Tasty RNS update this morning; collaboration to produce coffee machines with leading US manufacturer.

Should push the share price north-ways ahead of (highly anticipated) full interim results on 19th Sept.

Details of RNS below:

"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, is pleased to announce that it has entered into a collaboration with a leading global consumer product company, based in the USA, to develop a new range of coffee machines utilising Strix's proprietary technology.

Specifically, the Company and its partner will focus on developing a new appliance that will produce a single cup of high quality coffee using Strix's patented technology, in particular benefitting from Strix's knowledge and expertise in relation to temperature accuracy and method of water dispense.

Mark Bartlett, Chief Executive of Strix plc, commented: "We are very pleased to have secured this collaboration and we look forward to working with our new partner on this project. With the support of a global sales platform, this move into a new segment opens up an additional market opportunity for Strix, which to date, has been focussed primarily on water filtration systems and heating technologies for tea drinking, rather than coffee.""

[trident5] 30/7/2018 14:07

Yes I know AE.
I'm sure Strix have a good handle on how many they have sold. I'm just questioning how anyone can know the global market size for all products sold.
It can only be an estimate.
Therefore, I don't read too much in 1% incremental drops in market share as that could just be attributable to errors in determining the total market.

[alter ego] 30/7/2018 13:56

Trident5, over 2bn products sold see rns last Nov for annual production

[trident5] 30/7/2018 12:12

It's a bit of a finger in the air exercise though epo001 - how does anyone know how many kettles with controls get sold over any time frame.

[epo001] 30/7/2018 11:59

Dunno about 70% but just looked at the past few trading updates/results on hargreaves lansdown and in chronological order the market share reported was 40%, 39% and 38%. Or about a 5% decline in six months.

I am nicely in profit on a November purchase and have this one classed as an income share so not too worried yet.

[rick802] 30/7/2018 03:49

That was my next question. Thanks

[adnatrob] 30/7/2018 00:12

They previously had 70% global share.

[rick802] 29/7/2018 16:48

38% global share of kettle control marketAnyone know other manufacturers of kettle controls?

[sstanford] 27/7/2018 12:07

@allonblack, can you elaborate on this? When did you meet them?

[allonblack] 27/7/2018 11:41

Based on some great points made here on IP protection I met them and they are basically a chinese company now. They will build a new factory in China and will be successful in Chinese courts. Its on the wrong multiple.

[sstanford] 27/7/2018 11:29

Bought in this morning. Great earner, >100% ROCE, superb value and unwavering IP defence/zero recall reputation tricky for competition to replicate.

I expect this to go much higher.

[filament] 25/7/2018 10:08

Buy recommendation in IC that will make share drop !

[rcturner2] 24/7/2018 09:29

I have bought in today. Simon Thompson in the IC has covered this last week and rates the share as a buy.

[hastings] 18/7/2018 08:00

Indeed Masurenguy and always good to read that cash conversion is strong.

[masurenguy] 18/7/2018 07:52

Solid H1 trading update !

18 July 2018
Strix Group Plc

Trading Update

Strix Group Plc (AIM: KETL), the AIM listed global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, is pleased to announce the following trading update for the 6 month period ended 30 June 2018.

The Group continued to perform well during H1 2018 and the Board confirms that the Company is on track to report results in line with market expectations for the full year. Cash flow conversion remains strong, continuing to support our dividend policy. During the period, the Group maintained its global market leading share of c.38% with particularly strong performance in North America. The new U9 series of controls has performed positively with more than 60 specifications, securing order volumes of c.1m during the period with more than 20% destined for the less regulated market as we target further share growth within this segment.

Focus continued on the development of new products within the hot water on demand category using our mature, patented heating technology to fulfil key consumer insights identified from independent research. Aqua Optima experienced a strong performance with market share in the key UK market achieving c.20%, a record level, due to increased coverage in the UK retail sector and additional distribution in Central Europe.

The Group continued to defend its intellectual property rights and successfully settled an infringement claim in China for 19 electronic appliances during the period and had five webpages taken down on Amazon across their European platform for products that infringed Strix electronic kettle patent.

The Group will be announcing full interim results for the 6 month period ending 30 June 2018 on Wednesday 19 September 2018. An analyst briefing will be held at 09.30hrs.

[filament] 02/7/2018 20:02

Nice to see a rise today given sea of red

[hastings] 28/6/2018 10:59

Nice move again this am, still somewhat off the wider radar, which is nice.

[masurenguy] 09/6/2018 16:59

Cheers Hastings. I first took a look at Strix at the end of November when the shareprice was circa 140p but passed due to the high level of debt. However their results in March and the recent successful IP legal action in China brought it back onto my radar and a further prompt induced me to take a modest, initial position @155.2p yesterday.

Nice article in The Cambridge News - hope you don't mind but I've pasted a summary below, from the above link, of your comments on the forward broker projections for quick and easy future reference.

"Looking ahead to the year in progress sees expectations from broker Zeus for pre-tax profits of £29.1m rising to £31.6m next year, providing for EPS of 12.6p in the latter, which puts the stock on a forward PER just south of 12. Although Strix is a mature business and arguably does not fall into a classic growth play that has come to market, equally, it does have attractions for earnings appreciation in the coming years and the rating may not not prove to be expensive, particularly as a muted total yearly dividend of 7p provides for a decent yield.

Admittedly there is at present a hefty chunk of debt circa £45m on the balance sheet which will arguably flag up as red for some watchers. This is as a result of the fund that brought it to market having exited with their rewards although it is forecast to reduce markedly in the coming years, as the company continues to demonstrate what appears to be an impressive ability to generate cash. Strong cash generation and profitability backed up by a progressive dividend policy are the immediate attractions though, whilst the Isle Of Man based company also enjoys what is a very favourable regime on corporation tax. Those sitting on the sidelines watching may prefer to see firm evidence of the debt reducing to more palatable levels, although, such a delivery as anticipated would go some way to driving further support for the share price."

[hastings] 09/6/2018 15:28

Yes Masurenguy very impressive.Bought a few myself recently and penned which may be of some interest.https://www.google.co.uk/amp/s/www.cambridge-news.co.uk/business/technology/corpus-clock-inventors-firm-still-14747851.amp

[ugandalad] 09/6/2018 14:03

Interesting. How easy was it to obtain this info.