Strix Group PLC (AIM:KETL) has issued yet another profit warning for the current year, which it blamed on disruption caused by the Chinese COVID-19 lockdowns, and cautioned that the ongoing macroeconomic and geopolitical uncertainty could continue into next year.
The AIM-listed company, which designs and makes kettle safety controls, said it now expects profit after tax for the year to 31 December 2022 to be around £23mln. This was down from the £27mln-£29mln guidance issued alongside its interim earnings in September, which again was a downgrade from a previous forecast of just over £32 mln.
Strix reported adjusted profits after tax of £31.4mln for 2021.
The company said the ongoing lockdowns in China have adversely impacted two of its top five original equipment manufacturer (OEM) customers.
Further disruption is anticipated, Strix said, and as a precaution, it has reinstated its secondary warehouse to minimise any disruption with its own shipments.
The company also noted that December is a “significant period” for its business due to the active trading ahead of the Chinese New Year public holiday, when a number of its major customers and suppliers cease operations for a period.
It said it will announce a further trading update on 26 January 2023.
Strix also said it has completed the £38mln acquisition of Billi Australia Pty Ltd, Billi New Zealand Ltd and Billi UK Ltd, a supplier of filtered and non-filtered instant boiling, chilled and sparkling water systems, first announced in October.