Strix Share Discussion Threads

[tmcn1] 09/10/2018 08:40

Will continue to hold until end of March, the markets are too choppy now.

[runthejoules] 09/10/2018 08:35

Same happening with £VRS. Concerted tree shake or overall flash crash on certain stocks. Perhaps Naked Trader selling out. Anyway stop loss got me out at 155p, partially back in at 148p. Investment case not affected by any macros or updates I know of. Went ex-div a while back.

[tmcn1] 09/10/2018 08:28

My sentiment exactly 😳

[trident5] 03/10/2018 11:59

Masurenguy - thanks for that, adds some broader insight to the investment case.

[masurenguy] 03/10/2018 11:18

Recent investor presentation by CEO Mark Bartlett.

[simonh88] 29/9/2018 15:15

Tipped by the Naked Trader this week

[runthejoules] 27/9/2018 13:03

Bought £3.5k yesterday, ex div today (thought it was oct 27th!)and also re-recommended in SHARES magazine. Not bad. Can see why some got out but Impressed by detail of report and how every court case they win seems to result in a new customer. Gla.

[masurenguy] 27/9/2018 09:28

Goes XD today - payment of 2.3p in 4 weeks time.

[discodave4] 19/9/2018 19:04

Yep bullish but not enough to invest at the moment.

[steve3sandal] 19/9/2018 13:45

Graeme Neary of a Stockopedia retains his bullish outlook. Am sure SThompson IC will be writing up soon too.

[discodave4] 19/9/2018 13:09

ADNATROBHave to agree. £15m Capex coming up, will hit free cash flow (obviously) and will they fund internally?.No signs yet of the growth I thought so stays on my watch list.DD

[edmonda] 19/9/2018 12:29

'Interims Confirm Growth Optimism'
Strix announced interim results this morning. Net revenue advanced by 1.5% to £42.9m and adjusted EBITDA by a faster 4.3% as gross and EBITDA margins both expanded: to 37.9% (37.2%) and 34.5% (33.6%) respectively. Pre-tax profit to fall by 1.9% to £11.0m but the cash position remains strong. Net debt fell by £8.0m to £37.9m as net cash from operations was positive by £15.2m: a 97% conversion rate.
Kettle controls revenue was slightly lower in the half year at 1.9%. Global category volume was strong at 6% with China returning to growth and recovering by a similar amount. Despite global category growth, Strix maintained a 38% world market share in kettle safety controls. Volumes advanced by 7.6% to 36.8m units in the period. In the USA, growth was pleasingly strong at 20%. The new U9 series of controls continued to win new business. It also drove growth in the less regulated and China market segments.
Aqua Optima nearly doubled in size in the first half (+88%) and was close to 9% of group revenue. Its reach into an additional 2,500 outlets augurs well for future growth and we look forward to seeing the impact of its launch in China in the next six months.
Strix remains well placed to match market expectations for the full year and should enjoy sustained organic sales growth in our view thereafter. Moreover, its FY2018 12.0x P/E ratio and 4.2% dividend yields appear undemanding. In our view a 200p fair value – which would imply a 14.3x P/E and a 3.5% - seems realistic as further growth opportunities continue to reveal themselves, as well as offering more than 20% upside.

Read the full research note here ...

[rcturner2] 19/9/2018 10:29

I have sold out today.

[phowdo] 19/9/2018 10:11

Looks like PE timed their exit fairly well, leaving just a snifter of growth left in the company for the IPO buyers to lap up.

[steve3sandal] 19/9/2018 09:55

I recall this was the free share 3yr package upon listing subject to quite modest trading progress regarding eps to around 17p. Additionally, 7p div this year and 7.7p next year were also required. No surprise the directors have decided already to commit to those numbers. Adjustments will likely see eps achieved too.
Equity Development just reiterated 200p tRget price but I think much more than solid is required at the mo. I was surprised the China factory will be relocated at a cost of £15m in 2021, unfortunate cost.
I have a half holding and am mostly watching at the current price.

[srichardson8] 19/9/2018 09:33

£2.4mn in share awards to staff looks high to me against revenues and profits - 20% of OP. I suspect this management group didn't make much on listing but would like to see some clarification on future share award expectations.

[adnatrob] 19/9/2018 09:21

Uninspiring set of results. Plodding along, not the Strix of old.

[ptgint] 19/9/2018 09:18

Good results so bit surprised at market reaction and the sell you mention of 200,000 seems to be part of the cause.

[masurenguy] 19/9/2018 08:42

Schroders have been reducing their position here recently. I wonder whether the 200,000 Sell @166p this morning was by them? I've made a small top up which is showing as a Sell.

[hastings] 19/9/2018 08:11

Yes happy with this, nice marked reduction in debt as anticipated.

[masurenguy] 19/9/2018 08:05

Solid set of interims.

FINANCIAL Highlights

* A solid first half performance and trading in line with full year market expectations

* Revenues of £42.9m (H1 2017: £42.2m), increase of 1.5%
* Gross profit margin increased to 37.9% (H1 2017: 37.2%)
* Adjusted EBITDA (1) of £14.8m (H1 2017: £14.2m), increase of 4.3%
* Adjusted EBITDA (1) margin of 34.5% (H1 2017: 33.6%)
* Adjusted PBT (1) of £11.0m (H1 2017: £11.2m), decrease of 1.9% due to net finance costs of £0.9m (H1 2017: £nil)
* Adjusted diluted EPS (1) of 5.3p, with adjusted PAT 1) of £10.6m (H1 2017: £11.0m), decrease of 3.5% due to timing of tax accrual vs prior year
* Decrease in net debt to £37.9m (2017: £45.9m), improvement of 17.4%
* Net cash generated from operating activities £15.2m (H1 2017: £15.4m), decrease of 0.9% due to working capital movements
* Interim dividend of 2.3p per share to be paid on 26 October 2018

OPERATIONAL HIGHLIGHTS

-- Global market share maintained at c.38% by volume
-- Successful launch of U9 with >1.1m controls produced
-- Production efficiency increased by 6% due to continued automation and 16% increase in quality ppm
-- Settlement of an infringement claim for 19 electronic appliances in China to defend IP
-- Aqua Optima sales up by c.88% in H1, with record market share of c.20% achieved

[rcturner2] 18/9/2018 14:59

Nice rise ahead of interim results tomorrow.

[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.