In the latest trading update from Strix Group management has reported that it remains comfortably within the previous guidance for FY24 of £18m-£19m at constant exchange rates (CER) and ahead of consensus estimates. December proved better than initially anticipated, which followed a challenging period from the start of Q3, particularly in its higher margin regulated kettle control markets in the UK and Germany. Q4 benefitted from a combination of product launches / new contracts within all three divisions, with demand from OEMs higher during December.
We have accordingly increased revenue and adj. PBT expectations for FY24 by 1% and 4.5% respectively, with estimates for FY25 raised by 1.5% at the adj. PBT level. We have consequently increased our fair value / share to 105p (previously 102p).