KETL

Strix Group PLC

Industrial Goods and Services First-pass screen £90m

350/1000 Overall fit

AI beneficiary 35% 25

Operating leverage 25% 45

Valuation 25% 30

Downside protection 15% 50

First-pass take

Strix is a traditional small-appliance and water-filtration manufacturer with zero AI exposure. FY24 revenues grew only 1.3% while gross margins compressed 230bps and EBITDA margins fell 310bps due to commodity costs and FX headwinds, offsetting cost-control efforts. Net debt of £63.7m at 1.87x leverage is material; while Billi (water solutions) offers growth at 46.5% gross margin, it represents just 30% of revenue.

Flags

non-ai-exposedmargin-pressurerestructuringnet-debtno-valuation-datamacro-sensitivesmall-capdiscretionary-productsadjusting-items-material