Shares in Strix Group PLC (AIM:KETL) dropped 8% after the company lowered its profit forecast for 2024, citing continued weak demand in its key kettle controls market.
The group now expects adjusted pre-tax profit to be between £18 million and £19 million, down from previous expectations.
Consumer demand failed to recover during the peak season, particularly in regulated markets such as the UK, Germany, and the US, where Strix generates its highest margins.
The company attributed this to ongoing macroeconomic challenges, inflation, and cautious spending following the UK Autumn Budget.
Despite setbacks, Strix highlighted growth in other areas. Its Billi division reported strong European sales and is on track for double-digit growth in the fourth quarter. The consumer goods division secured key retail contracts for 2025 and began manufacturing appliances for a leading baby brand.
In early trading, the stock was changing hands for 55.29p, down 4.91p.