Strix Group PLC (AIM:KETL) saw its shares rise 7.4% to 94.70p in early trade on Wednesday as a bullish outlook statement offset 2022 results showing a drop in profits and revenue.
In the results statement, Mark Bartlett, chief executive officer of Strix, 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 of 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."
He concluded: "Strix will prioritise debt reduction and free cash flow generation with a clear plan to get net debt/EBITDA to below 2.0x during 2023 and to below 1.5x during 2024."
The comments came as Strix reported revenue of £106.9mln for the 12 months to 31 December 2022, a decrease of 10.5% versus the same period in the prior year driven predominantly by a reduction in Kettle Controls due to market environment. The group's full-year adjusted EBITDA was £32.1mln, a decrease of 20.7% versus the same period in prior year driven by the reduction in revenue.
As capital allocation decisions prioritise debt reduction, the company cut its final dividend to 3.25p per share (2021: 5.60p), making a total dividend of 6.00p per share (2021: 8.35p).