Strix Group PLC ORD 1P (LON:KETL) Chief Executive Officer Mark Bartlett caught up with DirectorsTalk for an exclusive interview to discuss their successful admission to AIM
Q1: First off, congratulations on your successful admission to AIM. Can you tell us a bit more about what Strix Group does?
A1: Strix actually manufactures and supplies kettle safety controls as well as some other complementary water temperature management products and although we supply those components that really is only a part of the story at Strix. So, in addition to that, we actually provide a lot of added-value services, everything from industrial designs, production support, market intelligence, really trying to provide the brands and consumers security in the safety of all their appliances.
Q2: So, what was the main reason for floating on AIM?
A2: We’ve been held in private equity for the last 10-11 years, AIM actually gives us the opportunity to have a longer outlook. We are a very cash-generative business so we want to make sure that, along with paying the dividends which is obviously very important, we can actually invest additional funds into the business to make sure we can achieve our growth plans going forward.
Q3: What will you use the proceeds from the float for?
A3: Primarily, the proceeds are used as an exit for our current investors so they’ll be 100% exit for our investors today and that will allow us then to actually move additional cash that we have in the business to our growth strategy.
Q4: Finally, Mark, what can you tell me about Strix Group’s growth strategy?
A4: There’s a number of aspects to our growth strategy going forward. First of all, in the core business, there’s still, believe it or not, quite a lot of growth opportunity within the kettle industry, places like America for instance are estimated that there’s only 1 in 10 people actually use an electric kettle so certainly some very strong opportunities for growth. In addition to that, we have some core competencies in terms of heating technologies that we intend to use in other water-on-demand type of applications. We also have a filtration business, Aqua Optima, with some very strong potential to actually grow that into different regions and increase the shares that we have within the UK and across Europe.