Strix’s net debt widens on rising prices
Kettle Safety and Water Technology Company Strix reported positive second-half momentum in a business update on Thursday, after achieving 30% revenue growth at constant currency and post-tax profit in line with market expectations for 2021.
The AIM-listed company said the results for the year ended Dec. 31 bolstered its confidence in achieving its medium-term goal of doubling revenue by the end of 2025, driven primarily by growth. organic from its water and appliance categories.
It said it was “proactively managing” and primarily offsetting the impact of a number of persistent headwinds in its supply chain, freight cost inflation and unfavorable exchange rates.
This was achieved through price increases on some of its legacy products, the implementation of hedging strategies, as well as other efficiency measures and strategic initiatives.
In addition, Strix said it has crystallized a tax advantage related to the opening of its factory, which is expected to result in a lower effective tax rate in 2021.
The board said its “strong” business performance demonstrated the continued resilience of the company’s business model, benefiting from geographic and product diversification, bolstered by the group’s strong cash generation and “prudent oversight. ” from the balance sheet.
Net debt before IFRS 16, lease liabilities at the end of the period was £51 million, which was higher than previously expected as Strix said it had “proactively invested” to minimize the future impact of continued commodity price inflation.
“Strix remains in a strong financial position to continue to deploy capital in line with its capital allocation priorities and to invest in a compelling growth strategy that includes actively pursuing opportunities that will add value across the group through acquisitions or niche technologies,” the board said in its statement.
“Given the performance of the group in 2021 and the confidence of the Board of Directors in the continued strength of its cash generation, the Board of Directors confirms its intention to pay a total dividend in line with its progressive dividend policy linked to operating profit.”
Strix said it would announce its preliminary results for the year ended December 31 on March 30.
At 15:08 GMT, Strix Group shares were down 1.98% at 247p.