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LONDON - Strix Group Plc (AIM:KETL), a manufacturer of kettle safety controls and water management products, reported Wednesday that its Controls division faced reduced sales volumes and order delays in the second quarter due to geopolitical and macroeconomic uncertainties.
The company, which had flagged potential challenges in its previous outlook statement, cited indirect tariff impacts and a weaker U.S. dollar as contributing factors to the slowdown. Strix now expects trading volumes to follow a more typical second-half weighted pattern consistent with historical trends.
Despite these challenges, Strix said its Billi water systems business continues to perform strongly with double-digit growth rates across key target markets, including expansion in Europe and Southeast Asia. The company’s Consumer Goods division has returned to "solid growth" following a 2024 restructuring.
The Isle of Man-based firm completed a new production line for its Next (LON:NXT) Generation controls at its Chinese facility, with several original equipment manufacturers already incorporating these controls into new products.
Strix acknowledged that its net debt has increased during the period, partly due to seasonal factors and the volume reductions in the Controls division. The company said it aims to return its net debt position to within its target range of 1.0-2.0x as soon as possible, compared to 1.87x at the end of 2024.
The company has initiated a refinancing process to support its medium-term growth plans and noted that it will complete repayment of a term loan used to finance its Billi acquisition by November 2025. This loan has cost the company approximately £14.0 million annually.
Strix plans to report its interim results for the first half of 2025 on September 30, according to the press release statement.
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