Shares in Strix Group PLC (AIM:KETL, FRA:SG9), the AIM-listed manufacturer of kettle safety controls, fell 10% to 42.32p on Monday after the company said an anticipated recovery in volumes had failed to arrive and trimmed its profit expectations for the full year.
The Isle of Man-based company now expects revenue of approximately £150 million and adjusted profit before tax of between £9.8 million and £10.2 million for the financial year ending 31 March 2026.
The shortfall against previous expectations stems primarily from the Controls division, where Strix said it had not seen the catch-up in volumes lost during 2025, particularly in higher-margin regulated markets such as the UK and Europe, which it had expected to materialise ahead of the traditionally busier April to June production period.
The company also said it had taken the commercial decision to reduce seasonal promotional activity in its final quarter, adding further pressure to near-term revenues.
Commodity costs have compounded the difficulties, with copper prices rising around 50% since the start of 2025 and silver surging approximately 300%, squeezing margins at the company's Chinese manufacturing facility.
In response, Strix has initiated a product price increase for most Controls customers, a move it said was consistent with the approach taken by its Chinese competitors.
On the positive side, the company said trading volumes had continued to improve following the easing of US tariffs, with order books for March running at consistently higher levels than the same period last year, and its Consumer Goods division returning to growth after restructuring.
Strix completed the £105 million disposal of its Billi water filtration division in January 2026, leaving the group with net cash of approximately £35 million and annual interest costs below £1 million, compared with around £7.5 million in 2025.
The company has also launched a cost optimisation programme targeting annualised savings of approximately £2 million over the next 18 months.
A search for a new chief executive remains ongoing, with current CEO Mark Bartlett due to step down at the end of May 2026.