LONDON (ShareCast) - (Sharecast News) - Kettle safety and water technology company Strix Group reported revenue of £119.4m in its 2021 results on Wednesday - an increase of 28.8% year-on-year and 26.6% over the same period in 2019, both at constant currency.
The AIM-traded firm said the growth was both organic and driven by the acquisition of Laica, which delivered "strong" revenue growth over the 12 months ended 31 December.

Adjusted EBITDA rose 6.3% year-on-year to £40.5m, with the company's adjusted EBITDA margin narrowing to 33.9% from 40%, and its adjusted gross profit margin slipping to 39.7% from 41.4%.

The board put that down to the impact of a number of persisting headwinds, including increases in commodity prices, freight cost inflation, supply chain and adverse foreign exchange rates.

Net debt excluding IFRS 16 lease liabilities increased to £51.2m from £37.2m, which funded the Laica acquisition, investment in growth opportunities, and new manufacturing operations in China.

That represented a net debt-to-adjusted EBITDA ratio, calculated on a trailing 12-month basis, of 1.3x.

Strix described its free cash flow generation as "strong", with operating free cash flow to EBITDA conversion at 70%, before financing, tax and exceptional factory capital expenditure.

The group said it had "significant" liquidity, providing it with the flexibility to deploy capital consistent with its priorities, as it focussed on investing in "compelling" growth opportunities.

Adjusted basic earnings and adjusted diluted earnings per share were 15.2p and 14.9p, respectively, up from 14.9p and 14.3p in 2020.

The board proposed an increased final dividend of 5.6p per share, up from 5.25p year-on-year, making for a total 2021 distribution of 8.35p per share, up from 7.85p.

"Strix has a robust business model and disciplined execution of our strategies have underpinned the resilience of our performance throughout economic cycles, so we remain confident in our ability to navigate the growing uncertainties ahead and deliver on the medium-term strategic plan and deliver against its targets," said chief executive officer Mark Bartlett.

At 0931 BST, shares in Strix Group were down 6.39% at 224.66p.

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