Strix Group Plc
(“Strix”, the “Group” or the “Company”)
Preliminary results for the twelve months ended 31 December 2021
Financial Summary
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Adjusted results1 |
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FY 2021 |
FY 2020 |
FY 2019 |
Change (21 – 20) |
Change (21 – 19) |
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|
£m |
£m |
£m |
%5 |
%5 |
|
|
Revenue |
119.4 |
95.3 |
96.9 |
+25.3% |
+23.2% |
|
Revenue – constant currency basis2 |
122.7 |
95.3 |
96.9 |
+28.8% |
+26.6% |
|
Gross profit |
47.4 |
39.4 |
39.6 |
+20.3% |
+19.7% |
|
EBITDA3 |
40.5 |
38.1 |
36.9 |
+6.3% |
+9.8% |
|
Operating profit |
33.7 |
32.1 |
31.5 |
+5.0% |
+7.0% |
|
Profit before tax |
32.2 |
30.9 |
30.2 |
+4.2% |
+6.6% |
|
Profit after tax |
31.4 |
29.5 |
28.9 |
+6.4% |
+8.7% |
|
Net debt4 |
51.2 |
37.2 |
26.3 |
+37.6% |
+94.7% |
|
Net cash generated from operating activities |
22.3 |
31.2 |
34.4 |
-28.5% |
-35.2% |
|
Basic earnings per share (pence) |
15.2 |
14.9 |
15.2 |
+2.0% |
+0.0% |
|
Diluted earnings per share (pence) |
14.9 |
14.3 |
14.1 |
+4.2% |
+5.7% |
|
Total dividend per share (pence) |
8.35 |
7.85 |
7.70 |
+6.4% |
+8.4% |
- Adjusted results exclude exceptional items, which include share based payment transactions, COVID-19 related costs, and other reorganisation and strategic project costs. Adjusted results are non-GAAP metrics used by management and are not an IFRS disclosure. A table which shows both Adjusted and Reported results is included in the Chief Financial Officer's review.
- Revenue – constant currency basis, which is defined as 2021 revenue restated at the exchange rates prevailing in 2020, is a non-GAAP metric used by management and is not an IFRS disclosure.
- EBITDA, which is defined as earnings before finance costs, tax, depreciation and amortisation, is a non-GAAP metric used by management and is not an IFRS disclosure.
- Net debt excludes the impact of IFRS 16 lease liabilities, pension liabilities, deferred tax liabilities and earn-out provisions on satisfaction of performance conditions and providing post-combination services. Net debt including earn-out provisions was £58.6m.
- Figures are calculated from the full numbers as presented in the consolidated financial statements.
Financial Highlights
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• |
The Group reported revenue of £119.4m, an increase of 28.8% on a constant currency basis versus the same period in prior year and an increase of 26.6% on a constant currency basis versus the same period in 2019. This was driven by both organic growth and the acquisition of LAICA which has delivered strong revenue growth over the period. |
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• |
Adjusted EBITDA increased to £40.5m (2020: £38.1m), representing a 6.3% increase compared to the same period last year and an increase of 9.8% versus the comparable period in 2019. Adjusted EBITDA margin was 33.9% (2020: 40.0%) and a djusted gross profit margin was 39.7% (2020: 41.4%), as a result of of factors including the impact of a number of headwinds which continue to persist including increases in commodity prices, freight cost inflation, supply chainand adverse foreign exchange rates. |
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Net debt (excluding the impact of IFRS 16 lease liabilities) increased to £51.2m (2020: £37.2m) to fund the LAICA acquisition, continued investment in compelling growth opportunities as well as new manufacturing operations in China. This represents a n et debt/adjusted EBITDA ratio ( calculated on a trailing twelve month basis) of 1.3 x. |
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Strong free cash flow generation with unique working capital cycle. Operating free cash flow (before financing and tax and exceptional factory capex) to EBITDA conversion of 70%. |
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• |
The Group has significant liquidity providing financial flexibility to continue to deploy capital consistent with its allocation of capital priorities and is focused on investing in compelling growth opportunities . |
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Adjusted basic earnings per share and adjusted diluted earnings per share were 15.2p (2020: 14.9p) and 14.9p (2020: 14.3p) respectively. |
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The Board is proposing an increased final dividend of 5.60p per share (2020: 5.25p) which would represent a total dividend of 8.35p per share (2020: 7.85p) . |
Strategic Highlights
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•
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Remain on track to deliver medium-term targets to double the Group's revenues primarily through growth in its water and appliances categories. Expanded share of the global kettle controls market further 1% to 56% by value. Acquisiton of LAICA continues to be successfully integrated in line with plan to achieve the identified benefits and the trading performance has been strong over the period. New manufacturing operations within Zengcheng district in Guangzhou, China are now fully operatonal and were delivered on time, to budget and executed during a global pandemic. Launches of Aurora and Dual Flo as key extensions of Strix domestic appliance category, both with strong energy saving and sustainability benefits. Excellent recent progress made in Strix's water category in Asia-Pacific, Europe and North America through new distribution and private label contracts with reputable distributors, retailers and brands in those regions. |
Operational Highlights
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• |
Production efficiency of core kettle products improved with 73% of all assembly lines now fully automated. |
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• |
Launching of sustainability report and “Sustainable. Innovative. Dependable.” strategy. |
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• |
Industry leading and ambitious decarbonisation target – scope 1 & 2 net zero by 2023 demonstrates commitment to sustainability agenda. |
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• |
New Strix.com website launched demonstrating the Company's vision of the future. |
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Successfully upgraded to SAP to improve real time data and streamline internal processes. |
Mark Bartlett, Chief Executive Officer of Strix Group plc, said:
” Strix has a robust business model and disciplined execution of our strategies have underpinned the resilience of our performance throughout economic cycles, so we remain confident in our ability to navigate the growing uncertainties ahead and delivering on the medium-term strategic plan and delivering against its targets.”