Kettle safety control company Strix has delivered a solid performance during 2019 despite continuing global volatility driven by Brexit and USA/China trade tensions.

The group has issued a trading update for the year ended December 31, 2019.

Despite these geo-political events, the global kettle market has remained resilient and posted an estimated growth of 4.5% with a strong performance in Russia and Western Europe, offset by softening in the UK and South Africa.

The board expects to report adjusted profit after tax in line with market expectations. As a result of strong cash generation and an improvement in cash outflows, the group will report a better than expected net debt figure of £26.3 million.

Strix has maintained its share in the regulated market which demonstrated marginal growth. The less regulated market weakened slightly with an estimated growth of 8% due to the decline in South Africa, where Strix preserved its strong share of a depressed market.

Strix is based at Forrest House, Ronaldsway and also has a factory in Ramsey.

Given the group’s performance in 2019 and the board’s confidence in the continued strength of its cash generation, the board reconfirms its intention to pay total dividends of 7.7p per share in respect of the 2019 financial year, inclusive of the 2.6p per share paid as an interim dividend.

Mark Bartlett, chief executive officer, said: ’The group has achieved another solid performance with adjusted profit after tax in line with market expectations.

’Strix remains committed to investing in the growth of our business and bringing new products to the market where we are on track to deliver 12 new products across the appliance and water categories during 2020.

’We continue to strengthen our long-term strategic position through the construction of a new factory in China.

’Strix improved its net debt position through sustained cash generation and revisions to the timing of cash outflows relating to the new factory.

’As a result, we look forward to the year ahead with confidence and have put in place the foundations to achieve our strategic objectives for 2020 and beyond.’

Strix Group is listed on AIM which is a sub-market of the London Stock Exchange.

The business is a global leader in the design, manufacture and supply of kettle safety controls and other complementary water products used in temperature control, steam management and water filtration.

The group has made ’significant progress’ during the second half of the year in relocating the manufacturing operations in China to Guangzhou’s Zengcheng district.

A foundation stone laying ceremony took place in October attended by the Strix senior management team.

The board has re-confirmed the construction project is on schedule to meet the January 2021 completion date with costs in line with expectations.