Strix reassures shareholders over coronavirus

Kettle controller company Strix Group said on Wednesday that it is continuing to closely monitor developments around the outbreak of the Covid-19 coronavirus in China, and has put appropriate measures in place.

The AIM-traded firm said its manufacturing operations, which are located near Guangzhou, resumed on 10 February, which was a one-week delay from the planned opening and in line with Beijing;s policy for an extended and mandatory closure over the Lunar New Year holiday period.

It said its facilities had experienced minimal impact to date.

Currently two-thirds of the workforce had returned to the facility, and while others had been hampered by travel disruption, Strix said that remained sufficient to fulfil customer commitments for February, with the company now focussed on securing March and April to minimise any disruption.

“The company remains closely in touch with all of its largest original equipment manufacturer (OEM) customers,” the board said in its statement.

“The majority have either resumed production or are expected to imminently.

“Strix has seen some customers increase order sizes due to disruption elsewhere in their supply chain.”

It said there were also no immediate concerns regarding its supply chain, given over 80% was based in the same area near Guangzhou, and was able to restart production last week.

“The company will continue to work with local government departments to ensure that all precautionary measures are in place to provide a safe and healthy working environment.

“The welfare of all Strix's employees remains the primary concern and Strix have proactively established a number of precautions, including a disinfection facility at the Guangzhou facility utilising HaloPure disinfection bromine resin beads, which is technology developed by HaloSource, Strix's most recent acquisition.”

At 1549 GMT, shares in Strix Group were up 7.79% at 185.4p.