Last week’s first-half trading update from Strix, the kettle controls and safety devices specialist, showed the inevitable disruption to trading: a 21pc fall in sales.
However, the order book has started to show sufficient momentum for management to target a flat full-year adjusted net profit figure of £28.9m, assuming no major second wave of the pandemic or widespread return to lockdown, helped by a range of efficiency and cost-control measures.
That looks very creditable under the circumstances, especially as the firm continues to invest both in new products and in additional manufacturing capacity in China, which is due to become operational as planned in summer 2021.
Net debt looks perfectly manageable at a lower-than-expected £36.9m and, as a result, analysts expect Strix to keep paying dividends.
A forecast 4pc yield for 2020 could appeal to those income seekers who are not frightened of a little of the risk that inevitably comes with investing in smaller firms.
We have a 34pc paper gain on Strix, with dividends on top, and there could be more to come. Hold.