Stelrad looks at Stock Exchange float

Radiator manufacturer Stelrad is looking to float on the Stock Exchange and will publish a registration document today (October 7th).

The Group has its headquarters in the United Kingdom, and has supplied goods across Europe for over twenty years, with manufacturing and distribution facilities in the United Kingdom, Netherlands and Turkey, additional distribution facilities in Poland and Denmark
and sales personnel in seven other countries, including China. It across six core geographies: UK, Benelux, Germany, France, Turkey and
Poland, selling around  24.4 million radiators. Stelrad’s four distinct business units are UK Radiators; Continental Radiators; Termo Teknik; and Hudevad and the group is market leader in five markets (UK, Ireland, Netherlands, Belgium and Denmark) and in a top three position in a further six markets.

Revenue for the year ended 31 December 2020 was 11% lower than budget, mainly due to the lack of sales opportunities during the first, restrictive lockdown period. Since Q3 2020 there has been a significant recovery, particularly in the higher margin replacement sector. In the twelve months ended 30 June 2021,  revenue grew to £242.508m, up 23.4% compared to £196.565m in the year ended 31 December 2020.

The Directors believe the Group is ideally placed to influence the direction of the market and is poised to play a significant role in the decarbonisation journey as it adapts in response to various governments’ initiatives and benefits from the estimated additional £240 billion which needs to be spent annually renovating approximately 35 million buildings (approximately £7,000 per building) to reduce buildings’ carbon emissions by at least 60 per cent. by 2030 as part of the EU Climate Target plans.

Bob Ellis, Chairman of Stelrad, said: “Stelrad is a leading specialist manufacturer and distributor of steel panel radiators with a track
record dating back to the 1930s. Today, the Group benefits from an unrivalled combination of brand strength, highly efficient operating infrastructure and market access, trading across six core geographies of the UK, Benelux, Germany, France, Turkey and Poland.
“The European countries where the Group operates have been progressive in advancing the decarbonisation agenda through strong regulation and policies and Stelrad’s products will play a key role in the longer-term transition away from traditional gas boilers with larger surface area radiators in particular being well suited to low temperature systems such as heat pumps. The Group’s highly experienced management team have a wealth of industry experience and a longstanding commitment to the business having put in place a strategy that has seen the business deliver a resilient financial performance in recent years and, as a result, the Group is well placed to build on the strong momentum through both organic and inorganic growth opportunities.”

Trevor Harvey, Chief Executive Officer of Stelrad, said: “Our successful growth strategy has been built upon a combination of standardised product design across all our manufacturing facilities, a key focus on specifiers across all of our end-markets and continued range innovation, alongside our multi-brand strategy that enables products and brands to be tailored to specific channels. As a result, we are the number one steel panel radiator business in a number of the markets where we operate.

“Hydronic systems dominate the heating market and steel panel radiators remain by far the most popular heat emitter with demand driven by both first-time installations and replacements. The overall market value is growing thanks to positive underlying market activity and continued adoption of premium panel radiators with the move towards decarbonisation presenting numerous opportunities and limited disruption to our longer-term growth plans.

“Our extensive product offering, strong relationships with all major distributors and specifiers plus this supportive market backdrop mean that we are confident of delivering further upside as part of our growth plan as we continue to play a leading role in keeping Europe warm.”