Strix Group PLC said on Wednesday its annual profit fell amid the Billi acquisition and high inflation.

Strix is an Isle of Man-based kettle safety controls’ provider, with its kettle controls used by over 1.2 billion people in more than 100 countries.

Strix said its 2022 pretax profit fell by 31% to £16.1 million from £21.5 million last year, while revenue fell of 11% to £106.9 million from £119.4 million.

The profit fall was largely due to higher net finance costs as a result of rising interest rates and its acquisition of Billi, an Australia-based supplier of water systems.

The company proposed a final dividend of 3.25 pence per share, down 42% from 5.60p per share in 2021, bringing the total dividend to 6.00p, down 28% from 8.35p.

Looking ahead, Strix anticipates an economic rebound amid the easing of Covid restrictions in China. It also noted that estimated kettle sales were up 17% in January 2023 from the same period last year, and expects business growth.

Chief Executive Officer Mark Bartlett said: ‘Following a period of uncertainty across a number of Strix’s key export markets in Q4, recent sales data in 2023 indicates some green shoots are appearing and the path to a return to growth is opening across all segments.

‘The successful integration of Billi will propel Strix into a new growth phase, further diversifying away from the core kettle controls business, with strong potential for greater top line growth and improved margins going forward.’

Shares were up 7.1% at 94.50 pence in London on Wednesday morning.

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