Strix has published reassuring interims and announced the acquisition of LAICA, conditional upon approval from the Council of Ministers in Italy. Against a backdrop of global disruption caused by COVID 19, Strix’s H1 performance is 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, FY 20 profit expectations are now underpinned, at around £28.9m PAT. Taking into account the LAICA deal, we provisionally upgrade FY 21 PAT/EPS by 6%. The shares are already up materially YTD, but the Strix growth story remains compelling.
Current valuation multiples remain undemanding for such a strong proposition at 16.6x PER '20, and 15.7x PER '21. Strix has shown a commitment to its dividend, and the 3% yield at the current price is also attractive.
For full forecasts you can access the pdf below:
26810392321 - strix-group
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