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Stelrad Highlights Strong Post-IPO Performance

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Stelrad, a leading specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey, today announces a trading update for the twelve months ended 31 December 2021.

The strong trading performance detailed in the Prospectus published in November 2021 as part of Stelrad's successful IPO continued during the final quarter of 2021. 

While the Group's performance in the UK has remained broadly unchanged to that outlined in the Prospectus, as anticipated, trading across the Group's European markets has strengthened further, driven by the continued success of the Group's products across the replacement, residential new build and commercial sectors.

In addition, the wider focus on the decarbonisation agenda and measures to reduce the carbon footprint of the built environment continues to fuel interest in alternative heat sources, resulting in increased awareness of lower temperature heating systems, driving interest in the Group's larger radiators.

Even though steel prices have appreciated throughout the period, the Group has continued to effectively manage this price volatility and, as a result, the Board now expects full year EBITDA for 2021 to be slightly ahead of its previous view.

Longer term, the Group continues to adopt a conservative approach to steel price movements and is continually looking to achieve cost and price optimisation.

The Board intends to issue its full year Preliminary Announcement on 14 March 2022. 

Trevor Harvey, Chief Executive of Stelrad, commented:

"2021 was a pivotal year for our business and, following our successful IPO in November and a robust end to the year from a trading perspective, we enter 2022 with strong momentum.  Macro trends such as the ongoing focus on decarbonisation and the trend towards premium steel panel radiators continue to provide a positive backdrop for our business and support ongoing demand for our products and the Group remains confident in its ability to deliver on its long term growth plans."

Commentary

Investec analyst Scott Cagehin said:  

Stelrad has delivered a positive maiden update post its IPO in November 2021. Robust trading continued to the year-end, penetration in European markets has strengthened, and it has successfully managed steel price fluctuations. FY21 profits are slightly ahead of management expectations and we increase our FY21E EPS by 3%. We prudently leave FY22/23E unchanged, but see upside to our forecasts given the strong momentum into FY22 and accelerating decarbonisation-driven demand. Valuation is undemanding. Buy.

Source : Stelrad PLC

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19 January 2022

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