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Strix Group Plc Prelim results were strong and continuing with a healthy start to the year

Mark Bartlett, CEO of Strix Group Plc LON:KETL, commented: “Trading during 2017 was strong and I am pleased to report that we have seen a healthy start to the current year. We remain focused on delivering another year of growth in line with market expectations.

Our IPO during the year was a great success and we look forward to our life as a public company. Strix has continued to enhance its market leading position by continuing to implement its strategy, with the successful launch of a new range of “best in class” controls designed to deliver competitive, high quality products across all market segments. The Company is strongly positioned to continue to capitalise on the growth of the global kettle market and we look forward to working to realise the full potential of the Company as a listed group.”

 

Strix Group Plc (AIM:KETL), the AIM listed global leader in the design, manufacture and supply of kettle safety controls and other components and devices, this morning announced its preliminary results for the year ended 31 December 2017.

These results cover the 12 month period, which includes the Company’s admission to trading on the AIM market of the London Stock Exchange on 8 August 2017.

Financial Summary

Adjusted results1

Reported results

2017

2016

Change

2017

2016

Change

£m

£m

%

£m

£m

%

Revenue

91.3

88.7

+2.9%

91.3

88.7

+2.9%

EBITDA2

35.1

33.5

+4.8%

32.2

30.9

+4.2%

Operating profit

29.1

26.9

+8.2%

26.2

24.3

+7.8%

Profit before tax

28.3

26.8

+5.6%

25.4

24.3

+4.5%

Profit after tax

27.5

24.7

+11.3%

24.6

22.2

+10.8%

Net debt3

45.9

n/a

45.9

n/a

Basic earnings per share3

14.5

n/a

13.0

n/a

Final dividend per share

1.9p

nil

1.9p

nil

 

1.         Adjusted results exclude royalty charges and exceptional items, which include share based payment transactions. Adjusted results are non-GAAP metrics used by management and are not an IFRS disclosure

2.         EBITDA, which is defined as profit before finance costs, tax, royalty charges, depreciation and amortisation, is a non-GAAP metric used by management and is not an IFRS disclosure

3.         2016 net debt and earnings per share are not comparable, being pre-IPO when a different capital structure was in place

 

Highlights

·     

Strong performance delivered in first period as a quoted company, with results in line with market expectations

·     

Revenues of £91.3m (2016: £88.7m), an increase of 2.9%

·     

Adjusted EBITDA1 of £35.1m (2016: £33.5 m), an increase of 4.8%

·     

Adjusted profit before tax2 of £28.3m (2016: £26.8m), an increase of 5.6%

·     

Adjusted basic earnings per share3 of 14.5p

·     

Net cash generated from operating activities £33.8m (2016: £32.0m), an increase of £1.8m or 5.6%

·     

Net debt at year end of £45.9m, a significantly improved position resulting in a net debt/adjusted EBITDA ratio of 1.3x

·     

Launch of U9 series controls providing cost competitive, best in class safety controls

·     

Installation of automated production line for U9 series allowing a 15% increase in throughput

·     

Successful admission to trading on AIM on 8 August 2017

·     

Proposed final dividend of 1.9p, with total dividends of 2.9p for the five month period from IPO to 31 December 2017

1          Adjusted EBITDA, which is defined as profit before finance costs, tax, royalty charges, depreciation, amortisation, and exceptional items, is a non-GAAP metric used by management and is not an IFRS disclosure

2          Adjusted profit before tax, which is defined as profit before tax, royalty charges, and exceptional items, is a non-GAAP metric used by management and is not an IFRS disclosure

3          Adjusted earnings per share, which is defined as earnings per share adjusted to exclude royalty charges and exceptional items, is a non-GAAP metric used by management and is not an IFRS disclosure

 

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.