Halosource NQM - You are probably right about the US start up scene, but I suspect Strix have seen some value here and the price they are paying for the technology and IP is peanuts - hopefully Strix have a much bigger established market for this. Games
Halosource Seems like a decent deal for us, but then again you have to wonder why there has seemingly been no other interest All I know of Halo is that they have a filtration system to remove lead from tap water, still a big issue in the USA apparently. Halo shareholders are not going to receive a penny of the proceeds of the sale… Will they agree to it? I was advised many years ago never to invest in US companies listed on AIM. I was told they only list on AIM because they would not pass scrutiny in the US. If you have a look at the record of US companies on AIM it has proven to be sound advice. “Strix (or its wholly owned subsidiary) will acquire HaloSource Water Purification Technology (Shanghai) Co. Ltd., the Company’s wholly owned subsidiary in China, along with substantially all of the assets of the Company’s US subsidiary, HaloSource, Inc. Under the terms of the Offer, the Company will receive, on Completion, a cash payment of approximately U.S.$1.3 million, including an advance of funds to the Company for working capital purposes of approximately U.S.$0.1 million by way of an unsecured promissory note. The book value of the assets expected to be sold at 30 June 2018 was approximately U.S.$2.8 million. For the six months to 30 June 2018 those assets incurred a loss of approximately U.S.$3.7 million and for the year to 31 December 2017 a loss of approximately U.S.$5.3 million.”
Halosource Ripley, Nah m8 - to be honest I’d never heard of them. You can rest assured, if it had been on Woodford’s list I wouldn’t be holding it. Sounds like it was on the verge of going bust, not uncommon for a Woodford company these days. Strix could make sensible use of the IP if they are successful at buying it for peanuts. Games
Halosource KETL… XXXXXX HI Gamesinvestor1 Did you invest in Halosource ?
Halosource [link] Strix Group PLC on Thursday said it has made an offer to acquire assets from HaloSource Corp for USD1.3 million in cash. Strix,a designer and manufacturer of kettle safety components, has offered to acquire some US and Chinese assets from water technology firm HaloSource, which will “assist in accelerating its strategy to expand and grow its water filtration division” it said.
inventor John Taylor on BBC radio 4 Life Scientific This is mostly of historical interest, because JT isn't on the board ( [link] ). Strix's "About" page has "1982Castletown Thermostats becomes Strix under John Taylor, son of Eric Taylor."There's a podcast currently available on [link] . While I don't think it's directly relevant to the investment case, some people could learn something about Strix's tech and about inventing.There's a possibly obscure point which I don't understand. JT said that if Americans had kettles like ours, they'd save enough power to be able to do without all their nuclear power. But, according to [link] kettles are relatively rare in the US because the lower voltage over there means they don't boil as fast. I can't resist quoting "Seriously? Americans can put a man on the moon and build the USS Nimitz, yet in 2014 you need to travel to Britain to experience the electric kettle?" (there's more on that theme).
Successful Patent and IP Protection Successful Patent and IP ProtectionStrix Group Plc (AIM: KETL), the AIM listed global leader in the design, manufacture and supply of kettle safety controls and other complementary water temperature management components, is pleased to provide an update on its patent protection strategy.Strix has a portfolio of intellectual property protecting a variety of product features across its product range. The portfolio includes over 150 patents and Strix relies on these and, where they have expired, other IP and unfair competition law to take legal action, both to defend the Company's commercial position and ensure consumer safety. Examples of action taken in the last six months in China and Europe include: -- As detailed in the recent Preliminary Results announcement, the China domestic market has seen an increase in electronic multi-cooker appliances and Strix will launch a revised control in H2 2018 to secure a share of this growth opportunity whilst continuing to defend its existing patented technology. Against this background, Strix brought patent infringement claims against 19 appliances sold by Bears Electric Appliances Co., Ltd to the Shanghai IP Court which was successfully settled as set out below. -- In an example highlighting the different ways the Company can protect its position concerning its older products, Strix brought a claim based on copyright law against Adriaanse Import & Export B.V. and Edco Eindhoven B.V. who had imported kettles into the Netherlands which, according to Strix, incorporated copies of its controls and connectors. The parties subsequently settled matters as set out below. -- Strix continues to monitor growing internet product sales and takes action where appropriate. The Company recently brought complaints of electronic kettle patent infringement to the attention of Amazon which swiftly resulted in five webpages being removed from their platforms across Europe. One vendor, Kinden, settled with Strix as set out below, agreed to replace the alleged infringing electronic kettle control with a Strix product and has since been re-listed. Mark Bartlett, Chief Executive Officer, commented:"We take protecting our innovative technology and superior products very seriously, ensuring that customers can continue to trust and rely on products using Strix technology."We continually monitor appliances in the market to prevent the sale of products that do not meet international standards or that infringe our IP. We will continue to take further action, as appropriate, reinforcing our market leading brand and ensuring that consumers can benefit from safe, high quality products."
Re: In And you have company now.
Re: In Doubled up at 138Ex-divi tomorrow.Games
In First purchase of this, this morning.I like the profile of the company, it'll hopefully be better when it strengthens it's balance sheet, which based on it's cash generation should be doable in a few years. It has an advantage on tax being in the IOM and one of the board members is CEO of Manx Telecom which I also own some of.Games
Re: Canaccord initiates at buy with a targe... (WebFG News) - With high margins, low capital intensity and strong cash conversion, kettle controls manufacturer Strix looked like an attractive prospect to Canaccord Genuity's analysts, pressing the button on a 'buy' rating for the AIM-quoted firm on Monday.Strix, which has an approximate 38% market share of the design, manufacture and supply of safety controls for electric kettles across the globe, produces roughly 70m kettle controls each year, most of which are sold to 180 original equipment manufacturers in China, as well as 400 brands and retailers worldwide where its products are used an estimated 1bn times per day.Canaccord pointed to Strix's long track record of sustainable profitability, having generated over £30m of adjusted EBITDA in each of the last ten years.On top of that, the 5.6% gain in the electric kettle market last year is coupled with the firm's high margins, low capital intensity and strong cash conversion, leading to an estimated 7.1% increase in demand over the next two years and enabling a progressive distribution policy.Canaccord saw further growth potential flowing from Aqua Optima, Strix's UK water filter brand, which has a long-term licence to supply Tommee Tippee with bespoke filters for its successful Perfect Prep baby formula appliance and also from its work on expanding its technologies into different geographies including China and the USA.In addition to the 'buy' rating, Canaccord issued Strix, which was currently trading at 137p, a price target of 210p per share.
Canaccord initiates at buy with a target price of 210p. Strix Group: Canaccord initiates at buy with a target price of 210p.
Re: Stockopedia view This is still a fairly recent float (August 2017). It develops and produces commonly used safety controls in kettles, for which it owns the patents. HQ is on the Isle of Man, and manufacturing takes place in China.It's numbers are in the billions. Today it reports that it sold its two billionth product late last year. Previously, it reported that its products were being used around the world over a billion times each day.Its valuation has seemed pretty reasonable and I've been kept back from buying the shares only because 1) it has a modest debt load (probably no big deal); 2) the expectation that something will "go wrong" as it sometimes does for recent flotations; and 3) not yet having an annual report for it, as a publicly listed company.The third of these worries will soon be out of the way, as we now have preliminary results.And apart from those concerns, the business model is hard to fault. The main ongoing risk is that copycats, particularly from China, take a bite out of its 38% market share.Today's numbers are in line with expectations. Revenue increased by nearly 3% and gross margin was up 120 bps to 40.7%.Market share in "regulated" markets, i.e. those markets which protect intellectual property in the way that a western country might do, is flat at 61%.In the "less regulated" markets, market share grew to 19%.In both segments, the overall size of each market is growing and this growth is particularly strong in the less regulated markets, which increased by c. 12% (Strix grew by 16%).The company does not appear to be resting on its laurels, either. A new range of controls was launched last year, which will therefore be included within a wide spread of new appliances this year.A table illustrating Strix's controls can be seen here (external link).Dividend - final divi declared. 2.9p is being paid for the first five months since flotation, and brokers have apparently penciled in 7p for next year.Balance sheet - net debt is now at £46 million. The financial review says this is set to decline during 2018.My opinionAs you might have guessed, I'm increasingly warm towards this share. Stockopedia also reckons its above-average, giving it a StockRank of 73. Check out these value stats:5ab3e3f1e6fc9KETL_20180322.PNGHaving said that, I'm not sure I agree with the price to book value calculations above. The company has been reorganised, so the stats might need be updated with these latest figures. One of the advantages of looking at newly-listed companies is that there can be a delay before the computers figure out exactly what is going on!I'm tempted to buy a small, starter position in this to get my feet wet, as I build my familiarity with its operations.[link]
Stockopedia view Strix (LON:KETL)Share price: 142.5p (+3%)No. of shares: 190 millionMarket cap: £271 millionTrading UpdateStrix listed in August 2017. It owns the patents for kettle safety controls, and has the global no. 1 position in this arena. This is a full-year update for 2017. It is in line with expectations.Global market share is maintained at 39% by volume (the company website previously put its market share at 38%).Plans are on track with new product launches and newly-automated procedures.My opinion - this share is increasingly attractive to me, due to its market-leading position, and simple products.We need updated financial statements to settle the nerves, as the company was reorganised for its IPO. At the moment, it still carries the general risk that comes with newly-floated shares. The vendors left it with some net debt, which is now estimated to be at £48 million. So that needs to be taken into account when looking at the cheap-ish PE ratio of c. 11x. And the customer list is a bit concentrated.All that being said, I'm genuinely intrigued about the potential here. In the small-cap space, it's not too often we get to invest in companies with huge global market share in their industry. Full-year results are due on March 22.[link]
Paul Scott's view Strix (LON:KETL)Share price: 136.375p (-0.5%)No. of shares: 190 millionMarket cap: £259 millionInterim ResultsThe Strix website proudly states that its products are used about a billion times a day. I think that says a lot about caffeine addiction in addition to what it says about the success of the company! It's in the business of making kettle controls, and has been listed only since August.Today's results for the period ended in June are in line with expectations, and look solid.Revenue up 6.7% to £42 millionAdjusted EBITDA up 6.1% to £14.2 millionPBT up 9.6% to £10.3 million.Export sales are up 10% which is despite a 10% decline in China, whose stronger 2016 result was apparently due to a health scare. Strix thinks its market share there is c. 50% - amazing if true! It has a large factory in Guangzhou, China, and an estimated 38% global market share by volume.The products must be extremely low-cost if 38% global market share translates to c. £40 million revenue over six months!An interim maiden dividend of 1p will be paid in November.Outlook is line with full year expectations.My opinion: This is an interesting addition to AIM. It has been listed at a fairly ordinary valuation and perhaps that reflects the cheapness of the products themselves. Strix mentions "continued pressure from copyists" as a challenge it faces in China, where competitors no doubt can offer all sorts of even cheaper component parts.But taking a look at its website, Strix's quality controls look utterly comprehensive, with certifications from a wide variety of bodies including Intertek (LON:ITRK). There are also four US patents mentioned.So I'm open to the idea that Strix's competitive advantage is here to stay, and that the shares are priced favourably for investors.[link]