30th Mar 2022 10:48
(Alliance News) - Strix Group PLC on Wednesday reported lower annual profit on rising costs, but boosted its annual payout as a sign of confidence with the company saying it is on track to hit its medium-term targets.
Strix shares were down 4.3% to 229.68 pence each in London on Wednesday.
The Isle of Man-based kettle safety controls provider reported pretax profit of GBP21.5 million in 2021, having fallen 16% from GBP25.5 million in 2020 amid cost pressures.
Cost of sales jumped 34% to GBP75.6 million from GBP56.4 million. Administrative expenses also increased, up 37% to GBP11.5 million from GBP8.4 million.
Meanwhile, revenue increased 25% to GBP119.4 million to GBP95.3 million. Revenue growth was driven by both organic growth and the acquisition of Laica which delivered strong revenue gains over the period.
"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," said Chief Executive Mark Bartlett.
Despite the fall in profit, Strix increased its final dividend by 6.7% to 5.60 pence per share from 5.25p a year before. This brought the year's total payout to 8.35p, which was 6.4% higher than 7.85p.
Looking ahead, Strix said it remains on track to deliver medium-term targets to double its revenue primarily through growth in its Water and Appliances categories.
To mitigate increasing costs, Strix said: "Strix has successfully implemented price increases on some of its legacy products in both kettle controls and water categories and will also be implementing further increases across the wider range with effect from 1 May 2022, which alongside a range of other efficiency measures and foreign exchange rate and commodity hedging arrangements will help to minimise the impact of any cost inflation."
By Greg Roxburgh; [email protected]
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