Signs of recovery now apparent

Today, Strix has published its H1 20 pre-close update (interims due in Sept). Against a backdrop of global disruption caused by COVID-19, Strix’s H1 performance is said to be in line with expectations. Net sales down 21% YoY, with a much smaller impact on net profits on the back of strong cost management. Encouragingly, there are now signs of a bounce-back in H2 with a solid performance for June and a strong order book for July and August. FY profit expectations are largely intact, which the market should respond well to.

Current share levels provide an attractively rated entry point. Valuation multiples are 12.9x PER 19, and 13.3x PER20. Strix has shown commitment to its dividend, and the yield at the current price is an attractive 4%. We estimate that fair value for the shares lies in the 220p-240p share price range.