Stelrad Performance 'Resilient'; Outlook Unchanged

• Continued market leadership, resilient underlying financial performance with outlook for the full year unchanged 

Stelrad Group, a leading specialist manufacturer and distributor of steel panel and other designer radiators in the UK, Europe and Turkey, today announces its unaudited interim results for the six months ended 30 June 2025. 

Results summary 

(1)  The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement. 

Continued market leadership underpinned by operational excellence

• Industry leading market share at 19.9%* (2023: 20.9%) with the reduction due to the impact of market mix across the countries we serve.   
  
  ^*BRG Building Solutions, May 2025. In the 20 European countries (including Turkey and Russia) for which 2024 steel panel radiator share data is available (which represented 94% of the European market in 2023).
  
  o  Excluding Russia, where the Group chooses not to participate, market share was 25.4% (2023: 25.3%).

• On Time In Full (OTIF) delivery was 99% (2024: 98%) in the UK & Ireland, a key point of differentiation versus our competitors.
  
  
• Contribution per radiator remained stable at £20.33 (2024: £20.48) supported by active margin management providing strong operational leverage. 

Resilient financial performance in a supressed volume environment

• Adjusted operating profit rose to £15.9 million, an increase of 1.1%, benefitting from ongoing margin management and structural currency gains. Adjusted operating profit margin increased 0.7 ppts to 11.7%.
  
  
• Non-cash exceptional items of £12.0 million (2024: £nil) relating to impairment charge on the assets of Radiators SpA.
  
  
• Operating profit on a statutory basis was £3.8 million (2024: £15.6 million), after the £12.0 million non-cash exceptional items.
  
  
• Revenue declined 4.6% to £136.5 million, despite continued pricing discipline, as a result of ongoing volume challenges from subdued demand in RMI and new build markets.
  
  o  UK & Ireland: revenue declined 5.8% supported in part by favourable increase in average radiator size, partially offsetting a 9.6% volume reduction.
  
  o  Europe: revenue declined 5.9% as a result of reduced volumes.
  
  o  Turkey & International: revenue increased 17.9%, to £8.5 million, due to increased volumes in the Turkish market.

• Positive free cash flow of £1.8m (2024: £1.3m), despite typical seasonal high point and selective investments in working capital to enhance service levels in the UK market.
  
  
• Return on capital employed increased by 0.5 ppts to 26.9% (2024: 26.4%).
  
  
• Leverage(1) at 30 June 2025 was 1.48x (December 2024: 1.37x), based on net debt before lease liabilities.
  
  
• Interim dividend increased by 2% to 3.04 pence per share (2024 interim dividend: 2.98 pence), to be paid on 24 October 2025, reflecting the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation.

Outlook

• Whilst the current market environment remains subdued, the Board expects a modest level of market volume improvement in the second half of the year augmented by the strength of Stelrad's market position, sustainable competitive advantages and operational excellence. 
  
  
• Proactive margin management and cost discipline leave the Group well placed to achieve unchanged Board expectations of further adjusted profit growth in FY25. 

Commenting on the Group's performance, Trevor Harvey, Chief Executive Officer, said:

"During the period, we delivered a resilient financial performance against a backdrop of ongoing economic uncertainty suppressing volumes in the Group's key markets. Crucially, despite this environment, we have maintained our market leadership position and continued to enhance the flexibility of our operational capabilities. 

"The Board remains confident in its long-term growth plans and in driving continued shareholder value. The key priority for the Group is to be prepared for an increase in volumes as and when market conditions improve. We know from our years of experience and long-standing position in the market that when volumes begin to recover, this happens at pace."

Source : Stelrad Group plc

Image : Stelrad Group plc

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