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Simmering up for a strong second half, and beyond

A maker of kettle safety controls is seeing its business bounce back strongly, and has made a smart looking earnings accretive acquisition, too. The same is true for a leading UK advertising and marketing specialist
Simmering up for a strong second half, and beyond

Isle of Man-based Strix (KETL:233p), a global manufacturer and designer of kettle safety controls, had already flagged up first half results in a pre-close trading update (‘Targeting value plays’, 3 August 2020).

More important than the Covid-19 related 9 per cent reduction in output, and 21 per cent slide in net revenue to £34.7m, is how the business is now bouncing back. A strong summer order book has been maintained through September, and the company is now guiding shareholders to expect record quarterly revenue of £24.1m from its kettle controls business, up 26 per cent year-on-year. In the first half, the segment posted revenue of £30m.

It’s not the only part of the business performing strongly as the water category, which includes the Aqua Optima brand, is on course to grow third quarter sales by 28 per cent to £3m. Of the 14 products slated for launch by the year-end, chief executive Mark Bartlett picks out the Aurora beverage station (under the Aqua Optima brand) as the most exciting. It should be a decent profit earner, too.

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