Isle of Man-based Strix (KETL:174.5p), a global leader in the manufacture and design of kettle safety controls, has issued a reassuring pre-close trading update ahead of first-half results on 18 September.
The key take for me is that the company has maintained its market share of 38 per cent by volume, and 61 per cent in regulated western markets, while holding its profit margins during a period in which the kettle safety controls market grew by 2 per cent. Clearly, the geopolitical backdrop has been tougher than in 2018 when the market growth was in mid-single digits.
I would stress that the ‘flow of goods’ is principally between Isle of Man and China, so Strix has not experienced any material impact from the ongoing US/China trade war, nor for that matter will be impacted by Brexit. In addition, the directors say that they have gained modest market share in China, a country that accounts for 23 per cent of the global market and where Strix already has a 46 per cent market share.