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Strix Group steams higher on market debut

Published: 09:08 08 Aug 2017 BST

Copper kettle
Kettle technology has moved on over the years ...

The share price of kettle safety controls designer Strix Group PLC (LON:KETL) quickly came to the boil on the first day of dealing.

The shares, floated at 100p a pop, steamed up to 134.5p in early deals.

The listing follows a share placing at a pound a go this week that received strong support from institutional investors and other investors, including the directors, and raised £190mln.

The funds will enable the directors to take long term investment decisions and strengthen new product development capabilities.

“Today marks a key milestone in the company's successful and long history. Admission to AIM will support us through our next phase of growth as we look to penetrate new markets, continue to offer the highest quality products and grow our market share, whilst most importantly maintaining strong relationships with our key customers,” said Mark Bartlett, the chief executive officer of Strix.

"The support we have seen from investors who recognise the significant opportunities of our growing and global market has been very encouraging. We are very much looking forward to life as a public company and reporting on the continued progress of the business in the months and years to come," he added.

Strix’s stock-in-trade is the design, manufacture and supply of kettle safety controls, though its range does extend to other components and devices involving water heating and temperature control, steam management and water filtration.

Its main direct customers for safety controls are original equipment manufacturers involved in the production of kettles and other small domestic appliances.

Globally, Strix estimates that 174 million kettles were sold in 2016, giving Strix a 38% global market share, up from 32% in 2015.

The group reported revenue of £88.7mln in 2016, up from £79.9mln in 2015. It is profitable, and recorded adjusted underlying earnings (EBITDA) of £33.3mln last year.

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