Strix Group trading 'broadly in line' with expectations

21st Jul 2022 16:39

(Sharecast News) - Kettle safety and water filtration technology company Strix Group said in an update on Thursday that, despite "significant and well-publicised" macroeconomic headwinds, current profit after tax consensus for the full-year remained "broadly in line" with expectations.

The AIM-traded firm said that while the global outlook had weakened in recent months, its forecast was based on its year-to-date performance, and an expected improvement in trading conditions in the balance of the year.

It noted that the second half had proved "seasonally stronger" than the first, and also pointed to the resilience of historical second-half performance through prior macroeconomic cycles, including during the Covid-19 pandemic.

Alongside that, Strix said it had successfully implemented further product price increases across the full kettle controls range and water categories, with the most recent taking effect from 1 May.

Strix said it had previously benefited from its ability to adjust its "highly variable" cost base, adding that it would be implementing a further range of efficiency measures and strategic initiatives to manage costs during the current period, in order to minimise the impact of the challenging operating environment and ongoing cost inflation.

"Strix has a robust business model and remains in a strong financial position to continue to deploy capital consistent with its capital allocation priorities and invest in a compelling growth strategy which includes actively seeking opportunities that will add value across the group through niche acquisitions or technologies," the board said in its statement.

Strix said it would announce its interim results for the six months ended 30 June on 21 September.

At 1622 BST, shares in Strix Group were down 2.79% at 179.64p.

Reporting by Josh White at Sharecast.com.