Shares in Strix have fallen by 10% after the firm outlined its profit expectations for the 2026 financial year, ranging from £9.8m to £10.2m.

The kettle safety controls designer, manufacturer and supplier said that following a marked slowdown in its controls division in September, it implemented an accelerated debt reduction programme.

As part of this programme, the firm has aimed to reduce inventory in its control division by £8m over the last six months, resulting in a "significant restructuring" of production volumes in its Chinese manufacturing facility.

Strix added that while market conditions remain challenging, it is encouraged to report that the early indications of post-tariff improvement in the controls division that it experienced at the end of 2025 have continued to build into 2026.

However, it has not experienced any catch-up in volumes lost over the course of 2025, particularly in the regulated markets.

Furthermore, the board has made the commercial decision to reduce seasonal promotions activity in the final quarter.

As a result, Strix now expects to generate £150m in revenue in 2026, as well as a profit before tax range of between £9.8m and £10.2m.

The group has also commenced a cost optimisation programme based on defined initiatives, which initially aims to deliver gross annualised savings, before investments of £2m over the next 18 months.

---