Strix Group PLC on Wednesday said a recent acquisition helped boost its annual revenue, but it lowered its dividend as it aims to focus on debt reduction.

Shares in Strix dropped 10% to 59.91 pence each in London on Wednesday morning.

Strix, an Isle of Man-based provider of kettle safety controls said revenue jumped 35% to £144.6 million in 2023 from £106.9 million the year before.

This was largely driven Billi Australia Pty Ltd, which it acquired back in 2022, and ‘continues to be highly profitable and is strongly cash generative.’

The full-year inclusion of Billi revenues stood at £41.3 million, Strix said.

Billi is an Australia-based supplier of premium filtered and non-filtered instant boiling, chilled and sparkling water systems.

Pretax profit rose by 9.9% to £17.7 million as a result, from £16.1 million the year before.

Strix declared a total dividend for 2023 of 0.9 pence per share, down 85% from 6.0p the year before.

The firm added that because it ‘remains focused on maximising cash generation to support debt reduction’, it will temporarily pause its final and interim dividend payments in 2024. However, it plans a return to a sustainable dividend pay-out ratio of 30% of adjusted PAT in 2025.

Looking ahead, Strix said it is undertaking a rebasing of its core business in 2024 to ‘build strong foundations for medium-term growth opportunities as the market continues to recover.’

It added that Billi’s double-digit revenue and profit growth is expected to continue, helped by a staged expansion into key European markets.

It also remains focused on deleveraging, and continues strategic investment into new products to accelerate growth in the medium-term.

Strix Chief Executive Officer Mark Bartlett said: ‘Strix is a resilient and highly cash generative business with the opportunity to expand its addressable market across all divisions. The recent strategic acquisition of Billi has delivered double-digit revenue and profit growth on a constant currency basis over the period which is anticipated to continue, helped by a staged expansion into key European markets. The group plans to return to its sustainable dividend pay-out ratio policy in 2025 reflecting the Board’s confidence in the medium-term prospects.’

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