Stelrad reports resilience despite difficult market

Radiator maker Stelrad reported a resilient performance for the year ending December 31 2023, with revenue slightly down by 2.6% at £308.2m, due to headwinds in new build and RMI activity.

There was a 17.9% improvement in operating profit to £26.7m, driven by 13% increase in contribution per radiator thanks to proactive price and cost management.

Trevor Harvey, Chief Executive Officer, said: ““Our performance in 2023 is testament to the resilience and flexibility of our business model, the strength of our market positioning and the robustness of our strategy that continues to see us focus on our four key strategic objectives of growing market share, improving product mix, optimising routes to market and positioning effectively for decarbonisation.

“After many years as challenger, Stelrad has now gained market leadership of both the steel panel radiator category and the hydronic heat emitter market in total, across the combined market of Europe, the UK and Turkey, taking market share from our competitors during a prolonged period of wider market uncertainty.

“Although we expect these macroeconomic headwinds to continue during 2024, management’s considerable experience of managing through numerous other challenging market cycles will enable us to navigate current market conditions to deliver another robust financial performance. In combination with our focused strategy, this positions Stelrad well for a sustained period of profitable growth when markets recover, with the Group well placed to benefit from strong underlying replacement demand across Europe and the long-term regulatory tailwinds for decarbonised energy efficient heating systems.”