A marked reduction in debt

The preliminary results from Strix ticked several boxes, including a significant reduction in indebtedness, profitability ahead of upwardly revised estimates and a refocused Consumer Goods division. The strong momentum experienced during Q4 ’24 continued into Q1 ’25, albeit this slowed within Kettle Controls during Q2 and reflecting the macroeconomic uncertainty. That said, the Board’s guidance on profitability remains unchanged.

In view of the uncertainty attached to global trade currently, we have produced estimates for FY25 only, preferring to add FY26 expectations alongside the interims. As such, a DCF valuation would not be appropriate, and we have relied instead on a peer group comparison model to determine fair value. At 103p, this stands some 144% above the current share price.