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Strix (KETL:AIM) is an Isle of Man based global company and a world leader in the design, manufacture, and supply of kettle safety controls in addition to other components and devices. It has been admitted to trading on the AIM Market of the London Stock Exchange, and has grown into a global business.
A new ‘Sustainable. Innovative. Dependable’ Strategy was recently launched in 2021 with a commitment on a decarbonisation target for scope 1 and 2 to be net zero by 2023.
DIVERSITY
Focus has been to become a global leader with sustainable growth from diverse revenue streams. The long-term vision has always been to vary revenue streams across three core categories - Kettles, Water, Appliances - through the implementation of growth
and sustainability strategies. Strix offers an attractive investment case with its market leading kettle controls position as well as significant growth opportunities in the Water and Appliances categories, strongly underpinned by focus on ESG and sustainability.
KETTLES
Strix’s core products are safety controls for small domestic appliances, primarily kettles. The company has positioned itself as the market leader in the kettle controls market with a value market share estimated at c.56%. Strix has established a strong reputation for safe, dependable products that will achieve the highest level of performance whilst meeting all safety requirements. Increased emphasis has also been placed on developing products which reduce environmental wastage through minimising energy losses and reducing commodity wastage.
WATER
Strix continues to develop its specialist water filtration offerings, improving the quality of water through its Aqua Optima and astrea brands. It is also making use of its HaloPure offering of a water sterilisation technology eliminating bacteria and viruses within livestock farming.
Together, these brands deliver global solutions for water filtration and sterilisation needs through the delivery of water bottles, jugs, filters and other related appliances. Given the ever-increasing consumer focus on health-conscious choices and reducing plastic waste, Strix can offer sustainable choices to the end consumer.
APPLIANCES
Strix continually seeks to develop innovative appliances within its portfolio of water, temperature and steam management technologies which take the frustrations out of everyday tasks, and provide meaningful benefits to customers through convenient, simple and sustainable solutions.
The Research and Development Team continues to focus on enhancing the efficiency of products by working closely with key partners and own brands to bring product innovation delivering core benefits in usability and sustainability. Innovation therefore drives Strix’s future product roadmap, which has consequently enabled Strix to improve energy efficiency within many products.
LAICA
LAICA was acquired in October 2020 and has an established product range with an advanced new product roadmap. The acquisition provided some strategic consolidation of the water treatment range, also driving efficiencies and providing a comprehensive portfolio of products for the group globally. Strix’s experienced management team worked hard to ensure the integration of LAICA was executed effectively to achieve identified benefits, and the trading performance has been strong, delivering double-digit revenue growth.
DOUBLING REVENUES
At the capital markets day held last November, the group outlined its medium-term strategy stating it expects to double revenues over the next five years primarily through organic growth in its Water and Appliances categories. Strix continues to actively seek opportunities that will add value across the group through niche acquisitions or technologies. Alongside this, it will continue to grow market share in kettle controls.
ESG
Sustainability remains of critical importance to the way the group operates and the future of Strix. The Company committed to embed sustainability into its business strategy and provide a safer sustainable future for its customers. In 2020, the group reassessed its approach to sustainability with a view to integrating a sustainability strategy within core business activities aligning themselves with the UN’s Sustainable Development Goals (SDGs).
NEW FACTORY
Supporting the company‘s expansion plans and new product development, a new state of the art facility within the Zengcheng district in Guangzhou, China, was built and completed in August 2021. This has enabled business growth and delivery of the stated strategy of doubling revenues over the next five years. Efficiencies and further in-sourcing are expected to have a positive effect on margins.
OUTLOOK
The company has a very resilient business, with good liquidity and strong cash flow. For Strix the focus is all about the future, with the sustainability strategy at the core of business. It has updated medium-term targets to double the group’s revenues over the next five years primarily through organic growth in its Water and Appliances categories.
DISCLAIMER: This article was written by Strix and published by Shares under a commercial agreement. It is not a recommendation to buy or sell the shares. The article originally appeared in Shares’ Spotlight report on 25 November 2021.
