REG - Strix Group PLC - Trading Update and Capital Return

StrixAnnouncement

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RNS Number : 3211D  Strix Group PLC  07 May 2026

Strix Group Plc

 

("Strix", the "Group" or the "Company")

 

Trading Update and Capital Return

 

Strix Group Plc (AIM:KETL), the global leader in the design, manufacture and
supply of kettle safety controls and other components and devices involving
water heating and temperature control, steam management and water filtration,
announces a trading update for the 15-month period ended 31 March 2026
("FY26"), along with a capital return and CEO update.

 

Trading Update

 

The Group reiterates that it expects to report revenue of c.£150m and
adjusted profit before tax in the range of £9.8m to £10.2m for FY26.

 

Whilst market conditions remain challenging, Strix is encouraged to report
that the early indications of post-tariff improvement in the Controls division
that it experienced in the three months to December 2025, have continued to
build in the first three months of 2026. Trading volumes, outside of the China
domestic market, are now consistently ahead of the comparable period in 2025.

 

As had been widely reported, copper and silver prices remain significantly
higher than the start of 2025. In line with its Chinese competitors in the
market, the Group initiated a product surcharge in February, ahead of Chinese
New Year. As expected, this was executed for the majority of Controls
customers ahead of the financial period end, with discussions continuing into
Q1 FY27 for a small number of strategic customers.

 

Following its restructuring in 2024, the Consumer Goods division has returned
to growth. Despite ongoing challenges in the small domestic appliance market,
the division delivered a number of important operational and product
innovation initiatives, strengthening the division's competitive position.
This included the launch of new products and a targeted marketing campaign in
the UK to support further expansion in a key strategic market.

 

Outlook

 

The roll-out of the Low-Cost and Next Generation controls continues to
progress well for the Controls division, focused on expanding into additional
market segments, defending against copyist manufacturers and increasing
Strix's overall addressable market. These solutions were well received at the
Spring Canton Fair, with multiple OEMs already developing new products
incorporating the technology, contributing to early success in reclaiming
market share with further opportunities expected to follow. Alongside this,
the Group remains strongly focused on production efficiency and cost
optimisation to protect margins and maintain competitiveness, particularly in
more price-sensitive and less regulated markets.

 

The Consumer Goods division is increasing its focus on water filtration, both
through the continued development of the LAICA brand and the expansion of
bespoke OEM solutions, addressing a market growing at an estimated 7-8%¹
annually. Leveraging its extensive design expertise and deep sector
experience, the Group is well positioned to capitalise on this opportunity
through advanced filtration capabilities, including innovation in the
reduction of Perfluoroalkyl and Polyfluoroalkyl Substances ("PFAS"), commonly
referred to as "forever chemicals", as well as anti-bacterial solutions and
additive technologies.

 

Looking ahead, whilst it is difficult to predict the full impact of the Middle
East conflict on consumer demand, the resultant increases in oil prices mean
the Group has seen a marked increase in the underlying commodity costs of
plastics used in both its controls and water filters. The Group will continue
to monitor developments in both these areas as it moves through the new
financial year.

 

¹Modor intelligence: Water Purifier/Filter Market Size and Share Analysis -
Growth Trends and Forecast (2026 - 2031)

 

Capital Return Update

 

On the 9 April 2026, the Group launched a proposed Tender Offer, considering
it to be the most appropriate and efficient mechanism of returning capital,
enabling all eligible shareholders to participate on an equitable basis. It
was subsequently announced on 5 May 2026, that the Tender Offer had been fully
taken up at the Tender Offer Price of 43 pence, therefore successfully
returning £10m to shareholders.

 

On 4 February 2026, the Group also commenced a £10m share buyback programme.
Up until 9 April 2026, 8,357,417 Ordinary Shares have been purchased under
that programme for an aggregate consideration of c.£3.4m, at an average price
of c.41.2 pence per share.

 

As announced on 9 April 2026, the Company paused the Buyback Programme until
after completion of the Tender Offer on 14 May 2026.

 

CEO update

 

The Company's process to recruit a new CEO, which is being led by Gary Lamb,
Chairman is progressing well. Mark Bartlett will be stepping down as planned
at the end of May 2026. Gary Lamb will support an orderly transition covering
the period between Mark Bartlett stepping down and the new CEO joining the
Board. A further announcement will be made in due course.

 

 

For further enquiries, please contact:

 Strix Group Plc                                         +44 (0) 1624 829829
 Gary Lamb, Chairman

 Mark Bartlett, CEO

 Clare Foster, CFO

 Zeus (Nominated Advisor and Joint Broker)               +44 (0) 20 3829 5000
 Jordan Warburton / Louisa Waddell (Investment Banking)

 Dominic King (Corporate Broking)

 Stifel Nicolaus Europe Limited (Joint Broker)           +44 (0) 20 7710 7600
 Matthew Blawat / Francis North

 Gracechurch Group (Financial PR and IR)                 +44 (0) 204 582 3500
 Heather Armstrong / Claire Norbury

 

 

The person responsible for arranging release of this announcement on behalf of
the Company is Mark Bartlett, Chief Executive Officer.

 

Information on Strix

Founded in 1982, Isle of Man based Strix is a global leader in the design,
manufacture and supply of kettle safety controls and other components and
devices involving water heating and temperature control, steam management and
water filtration.

 

Strix has built up market leading capability and know-how, expanding into
complementary products and technologies. The Group's brands include Aqua
Optima and LAICA providing our customers with market leading water solutions
on a global basis.

 

Strix is quoted on the AIM Market of the London Stock Exchange (AIM: KETL).

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