Equity Analysis /
United Kingdom

GB : Strix Group - Delivering, with sustainability to the fore

    Christian Hinderaker
    Christian Hinderaker

    Analyst - Capital Goods

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    CGS-CIMB
    30 March 2022
    Published byCGS-CIMB

    Continued success with NPD and the integration of LAICA delivered 29% ccy. growth and sales of £119m FY21, leaving Strix on target to double sales 2020-25. Adj. EBITDA of £40.5m grew by a lower 6% y/y and thus was c.2% shy of consensus due to the timing of cost vs price rises. Further price increases are planned for May with a view to mitigating future inflation, while efficiency measures and the integration of LAICA are expected to support margins that remain top tier. With growth on track and ESG credentials to the fore, we continue to view Strix as a tier-1 industrial, however the repricing of risk assets sees us trim our TP from 460p to 370p, still >55% above current levels and hence we reiterate BUY.