STRIX, the Isle of Man company that is the worlds biggest maker of kettle controls, is looking for a 10 per cent increase in sales this year on the back of a worldwide pick-up in the small domestic applicance market.

The privately owned company - in which HSBC bank holds a stake of 40 per cent through its venture capital arm - expects an increase in profits in 2002 of 7 per cent.

Because STRIX accounts for an estimated 70 per cent of all controls and thermostats fitted to electric kettles and other consumer devices for heating liquids, it is regarded as a good indicator of trends in an important part of the kitchen goods industry.

Eddie Davies, chairman and part owner of STRIX, said that behind his confidence was a consumer recovery in much of the world, plus the impact of new products that would help the business.

Last year, STRIX had sales of £70m, 97 per cent of this outside the UK.

Its biggest market is China, where 60 per cent of the world's kettles are made before being exported globally.

STRIX has 500 employees in the Isle of Man and mainland Britain, with another 500 in plants in China. According to STRIX's calculations, its controls are used 1bn times a day, and are in devices owned by a fifth of the world's population.

About 50m kettles a year are sold around the world, at retail prices ranging from £10 upwards. The biggest markets are in countries of the former British Commonwealth where kettles are used predominantly for making tea. Mr Davies said that last year demand for kettle controls dipped in the first quarter, partly because of worries about an economic downturn.

"But since then business has picked up and we are now seeing demand growing steadily," he said.

Last year, the company experienced flat sales, but pushed up pre-tax profits 7 per cent, on account of productivity savings, Mr Davies said.

Pre-tax proficts are not disclosed but are thought to be about 10 per cent of sales. Mr Davies with John Taylor, STRIX's founder - are the only two other two shareholders in the company apart from HSBC. In 2000, the bank paid more than £50m to buy its stake in the company.

STRIX spends about £3m a year on product development. Among its development tools are computer aided design systems - used to help make thermostats that may sell for £1 each - that are similar to those used to fashion aircraft wings.