Make your money go further for just 25p per day

Strix Group - share based payments dwarf other costs

21/03/2019 · Strix Group PLC (KETL) 

AIM

Boiling kettle with Strix control
New shareholders in this manufacturer of kettle safety controls are bearing the brunt of some generous employee benefits; we are puzzled why they agreed.

Strix Group (LON: KETL), the Isle of Man based manufacturer of kettle safety controls issued reasonable results for the year ended 31 December 2018. However, it’s the overly generous share options which have left us scratching our heads.

Share based payment costs of a whopping £4.8m equate to 18.6 per cent of operating profit. Senior management of the company are the key beneficiaries of this generous scheme which takes their annual remuneration to £6.3m, to add to the £6.1m received in the prior year.

The company reassures us “There are no defined benefit schemes for key management” with pension costs under defined contribution schemes included in the post-employment benefits. We should think not!

Scrolling way down to Note 22. of the financials statements reveals further details of the overly generous share based compensation scheme which was put in place as part of the company’s admission to AIM in 2017.

The balance sheet of this interesting business with a 38 per cent global market share…

Sign up and read the full article

Register to continue reading this article.

Get FREE access now

Already a member? Login

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE TODAY

Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.

SUBSCRIBE NOW

More on Strix Group PLC

Strix Group - share based payments dwarf other costs

21/03/2019 · News & Insights
New shareholders in this manufacturer of kettle safety controls are bearing the brunt of some generous…

IC’s Hot Stocks 2017 (Part 2) - will these underachievers of 2017 come good in 2018?

22/12/2017 · News & Insights
Part 2 of our review of 2017 reflects on a mix of good, bad and downright…

Why would the Chancellor attack AIM tax reliefs?

13/10/2017 · News & Insights
Investor’s Champion has researched AIM companies for over 12 years and has always highlighted the Inheritance…

AIM breaches £100bn in August - we cover all the new arrivals here

07/09/2017 · News & Insights
Supported by strong share price performance and a substantial new arrival, August 2017 saw AIM’s market…

Strix Group - if it looks too good to be true, it normally is!

15/08/2017 · Company research

More from the News & Insights

Sports Direct struggles to manage Goals

Premier Technical Services 140% premium - who missed out?

Video games developer Team17 continues to impress

18/06/2019 · Team17 Group PLC