Stelrad reports an increase in its revenues

Stelrad Group, a manufacturer and distributor of steel panel radiators, announces that it has had record revenues with an increase of 6.2% –  its statutory operating profit was also up 16% to £13.8m.

The manufacturer reports that the examined financial period, which was between January and June 2023, although like-for-like revenues were 12.7% lower than the prior year, against very strong first half comparatives in 2022, combined with the impact of high inflation and rising interest rates, supressing both new construction and renovation activities.

Trevor Harvey, CEO, said: “Despite challenging macroeconomic conditions across a number of countries, Stelrad’s leading positions mean that the Group remains well placed to outperform the market and deliver on its full year expectations.

“Our focus remains on our key objectives of growing market share, improving product mix, optimising routes to market and positioning effectively for decarbonisation.  Following a pivotal first year as a PLC in 2022, I am pleased that, despite the notable headwinds facing the wider industry, we have been able to deliver on our plans for the first half of 2023 and remain on course to achieve our expectations for the full year.”

It reported that its adjusted operating profit performance was adversely impacted by the anticipated volume decline versus strong H1 22 comparative and increased depreciation charges, which was partially offset by pro-active margin management and cost reduction initiatives.

The manufacturer expects to see longer-term tailwinds of decarbonised but energy efficient heating systems continue to underpin Stelrad’s confidence in the future. It also explains that the launch of its new electric range in the UK in second half 2023 provided a positive financial trend.

Stelgrad also report that its volume mix of higher margin, premium steel panel radiators, were up during the period.

“The resilience of our business model, alongside our experience of navigating previous market downturns, means that the Group is well positioned to capitalise once markets improve.  Regardless of the near term headwinds facing the wider sector, the increasing need for decarbonised, energy efficient heating systems remains unchanged and underpins our confidence in our ability to drive long-term shareholder value,” said Harvey.