Strix maintains expectations in 'challenging' environment

26th May 2022 11:33

(Sharecast News) - Kettle safety and water filtration developer Strix said in an update on Thursday that, based on its performance in the year-to-date, it was maintaining its trading expectations for the full year.

The AIM-traded firm, which was holding its annual general meeting, said that since its full-year results, the global outlook had weakened, and headwinds were persisting, implying that it would continue to face a "challenging" operating environment.

Chief executive officer Mark Bartlett said the company had, however, successfully implemented further product price increases across its full kettle controls range and water categories, with the most recent taking effect on 1 May.

"This, alongside a range of continued strategic efficiency measures including the adoption of lean and automated processes at the new manufacturing operations, foreign exchange rate and commodity hedging arrangements has continued to minimise the impact of ongoing cost inflation," Bartlett said.

"We continue to monitor the evolving situation in China and, to date, our manufacturing operations within Zengcheng district in Guangzhou have not been materially affected.

"We continue to take a proactive approach to minimise potential supply chain disruption by increasing levels of finished stock and holding stock in multiple districts."

Mark Bartlett said that overall, Strix had a "robust" business model, remained in a "strong" financial position and, through adopting a "disciplined and dynamic" approach to its strategy, delivered a "resilient performance" during prior macroeconomic cycles and during the Covid-19 pandemic.

"We remain confident in our ability to navigate current uncertainties and deliver on the current expectations for the full year and against our medium-term targets."

At 1051 BST, shares in Strix Group were up 0.21% at 187.2p.

Reporting by Josh White at Sharecast.com.