Simmering nicely

The pre-close update demonstrates ongoing strong trading across the Group, with revenues ahead 50% yoy in H1 and in-line with previous guidance (+30% for FY21 and a doubling of revenues by end 2025). Both the continued recovery within Kettle Controls and the traction that new products are seeing within the water and appliance segments, drove the strong progress during H1. Gross margins remain in-line following price increases within legacy products and ongoing efficiency measures.

We see no reason to adjust estimates at this stage, with further guidance to emerge at the interim results in September. Yet we continue to feel that the current undervaluation of Strix shares is unwarranted, relative to both its peers and to growth levels. Growth continues at strong levels, in-line with targets set by management and we retain our 350p/share fair value.