Strix Group PLC on Wednesday said it completed the acquisition of Billi Australia Pty Ltd, Billi New Zealand Ltd and Billi UK Ltd, and it expects profit in 2022 to remain below 2020 levels.

The Isle of Man-based kettle safety controls provider said the acquisition materially accelerates its growth plans for its Water & Appliance categories, and provides an entry into the ‘high growth and strategically important’ hot tap market.

Billi is an Australia-based supplier of premium filtered and non-filtered instant boiling, chilled and sparkling water systems. Strix said Billi has a successful history of growth with a double-digit revenue compound annual growth rate over the past five years and strong cash conversion.

Strix now anticipates adjusted pretax for the full year to be approximately £23 million, up from £21.5 million in 2021. Pretax profit in 2021 was down 16% from £25.5 million the year before amid cost pressures.

Strix said this forecast follows ongoing lockdowns in China, and ‘macroeconomic and geopolitical uncertainty’ across a number of key export markets. These uncertainties could continue into 2023, Strix added.

Strix added that lockdowns in China have ‘adversely impacted’ two of its major original equipment manufacturer customers, with further disruption anticipated. The company has reinstated its secondary warehouse as a precaution to minimise disruption with its own shipments.

Strix shares were down 34% to 81.70 pence on Wednesday morning in London.

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