Ronaldsway-based kettle component company Strix says it is on track to give shareholders a 7p dividend.

It has published its trading update for the year ending December 31.

The board says that it expects to report results in line with market expectations for the financial year.

The company, which employs about 70 people in the Isle of Man, expects to report a net debt position of about £28 million.

The global kettle market still posted growth of about 7% with strong progress in North America, Russia and South East Asia offsetting softening in Europe, the UK and Turkey.

During the period, the group maintained its global market leading share of the kettle controls market at about 38% by volume with its U9 series of controls helping growth in ’less regulated’ markets and strong performance in the USA offsetting a ’slight softening’ within the China domestic market.

The group’s Aqua Optima brand has grown following a ’re-positioning’ of the brand in the UK market and an increased presence at multiple retailers.

The company also says it has entered into new collaborations, including with Parkrun and TerraCycle, to boost business.

As a result, Aqua Optima has increased its combined brand and private label (own brand) volume share to over 25% of the UK market.

The group has continued to progress the relocation of its manufacturing operations in China in the second half of the year.

facility

An appropriate site has now been identified near its facility in Guangzhou and the group is in the process of finalising an agreement to buy the land with the local government in the district in which the site is located.

The board says it anticipates factory construction will begin in the second half of 2019 and will take about two years.

A further update will be given with the full year results.

Meanwhile, Strix is also trying to enforce the group’s patent rights and, where they have expired, use other legal redress such as copyright to take legal action against those that seek to copy its products.

’The group will continue to vigorously defend its patent position to ensure that consumers, its customers and its brand are protected,’ a press statement says.

The board has re-confirmed its intention to pay total dividends of 7p per share for the 2018 financial year, inclusive of the 2.3p per share paid as an interim dividend.

The group will announce its results for the year ended December 31 on Thursday, March 21. An analyst briefing will be held on the day in the City of London.

Mark Bartlett, chief executive officer, said: ’Strix has achieved another strong performance in line with market expectations. In particular, cashflow generation has been strong which has helped achieve an improved net debt figure, ahead of market expectations.

market

’We have maintained our strong global market position in the face of a competitive market environment, and have been largely unaffected by the uncertainty caused by Brexit and US trade tariffs as a result of our diverse global presence.

’We have also taken appropriate actions to mitigate future supply risks.

’As a result, we look forward to the year ahead with confidence and have put in place the foundations to achieve our objectives for 2019.’