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Strix - Old world kettle control business

August 2017

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Strix, which supplies electric kettle components, is likely to receive a warm reception when it joins AIM on 8 August following a placing that is expected to raise £190m at 100p. The float is unusual for a number of reasons. AAC, the former UK private equity arm of ABN Amro Bank, tried to trade-sale the business three years ago but found few takers and is now selling the whole business onto AIM - resulting in a 100% free float. Based on a current year forecast of £26.6m pretax profit on sales of £92.8m, the shares have been launched on a prospective PE of 8.8 and carry a 7% yield at the float price.Founded   in 1951, Strix’s speciality is in thermostatic controls, which automatically switch off an ...

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With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the www.scsw.co.uk website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X

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