Image source: © 2025 Krish Capital Pty. Ltd.

Highlights

  • KETL reports H1 trading in line for Billi and Consumer Goods, but Controls sees pressure
  • Strix launches new generation controls as macro factors impact Q2 sales volumes
  • Net debt rises and refinancing underway as term loan repayment nears completion

Strix Group Plc (AIM:KETL), a UK-based manufacturer and supplier of kettle safety controls and water temperature management devices, has provided a trading update for the six months ending 30 June 2025. The company operates across three segments: Controls, Consumer Goods, and Billi, with products ranging from kettle safety components to filtered water solutions and domestic appliances. Following a solid Q1FY25 performance, both the Billi and Consumer Goods divisions continued to grow in line with internal forecasts. However, the Controls division experienced a slowdown in Q2 due to geopolitical uncertainties and adverse indirect tariff impacts, particularly stemming from a weaker U.S. dollar. These headwinds resulted in lower sales volumes and order delays, although the company expects a return to normal second-half seasonality, consistent with past patterns.

Despite the Q2 challenges, the Controls segment advanced in several operational areas. The new Next Generation control production line at the company’s Chinese facility was completed and launched to market, securing placements with original equipment manufacturers (OEMs). The product roadmap in this segment continues to focus on expanding into new market segments, protecting against copycat products, and enhancing addressable market share.

Meanwhile, Billi has maintained double-digit growth, with rising customer traction across core regions including Europe, Southeast Asia, and its largest market, Australia. This growth reflects the continuing success of its geographic expansion strategy and newly launched product lines in H2FY24 and H1FY25. The Consumer Goods segment has returned to growth following a strategic restructuring in 2024. Manufacturing operations in China for a leading baby brand customer are progressing, and new product launches occurred during the review period.

Financially, net debt increased during the first half of the year, impacted by seasonality and Q2 trading pressure in Controls. The Group continues to prioritise debt management and aims to restore net leverage to within its stated range of 1.0–2.0x (FY24: 1.87x). To support this objective, Strix has initiated a competitive refinancing process intended to provide more flexible and cost-efficient capital, especially as the company approaches the final repayment of the term loan used to finance the Billi acquisition. This loan, which has been serviced at a rate of approximately GBP 14 million annually, is scheduled to be repaid in full by November 2025.

The Group emphasised its continued efforts to manage costs, preserve cash flow, and allocate capital cautiously in the face of macroeconomic uncertainty. With refinancing and product development efforts underway, Strix anticipates improved performance as global demand stabilises and seasonal trends reassert themselves in the second half of FY25.

KETL shares were trading 5.66% lower at GBX 42.36 per share as of 30 July 2025.