How Stelrad is supporting hundreds of jobs in Yorkshire's manufacturing heartland

It is a significant base for Stelrad, which became a public company last year and is poised to provide a further boost for Yorkshire’s manufacturing heartland by growing organically and through acquisitions as smaller rivals stumble.

In many respects, Stelrad is typical of so many successful modern manufacturing firms; it’s efficient and led by an unassuming executive team but is also a leader in its field.

Stelrad, which employs 300 people at its Mexborough site, is a specialist manufacturer and distributor of steel panel radiators which you may well have encountered many times at home and work.

The firm makes a large range of standard and premium steel panel radiators, low-surface temperature radiators, towel warmers, and decorative steel tubular radiators.

Trevor Harvey, the chief executive of Stelrad, described 2021 as a pivotal year for the business as it completed a successful IPO which placed it in the corporate spotlight. During a period dominated by grim headlines linked to the war in Ukraine and soaring energy bills, Stelrad feels confident about its prospects.

Mr Harvey said: “The energy cost rises will weigh heavily on consumers’ minds going forward.”

Always ahead of the times, Stelrad has been active in introducing and promoting products compatible with low carbon, low temperature heating systems such as heat pumps.

“Mexborough is at the centre of our UK operations and our products are at the centre of the decarbonisation debate,” Mr Harvey added.

“We believe we will see a significant increase in the use of air source heat pumps because they seem to be the most cost effective way of improving the efficiency of heating systems.

“We have invested very heavily in Mexborough to ensure we are the best in class and we are looking to increase output but not necessarily increase the size of the workforce.

“Three new initiatives from the Government have created a £2.2bn subsidy to boost the transition away from fossil fuels. We would always welcome more support from the Government.”

Mr Harvey, who joined the group in January 2000, believes schools and colleges have a vital role to play in ensuring there is a strong talent pipeline for the manufacturing sector.

“We have been doing a lot of work with local educational establishments to show off our plant,” he said.

“The Mexborough workforce are very committed and very hard working with long-serving employees.

“The pandemic created challenges for all businesses and we did a lot of work to support the health service. Although there have been pressures on the supply chain, we have not had a single day of disruption due to supply chain challenges,” he said.

“However, we are not immune from price volatility. The rising energy prices has created a bigger headwind than expected. There has been an interesting trend towards premium and design products. People are upgrading their homes rather than going on holiday.

“The terrible events in the Ukraine could increase price volatility but we are capable of dealing with these sorts of issues.

“People have had an increased focus on their heating systems and they are more interested in design and aesthetics; our range of products has 36 colours.”

Mr Harvey said the increase in output from Mexborough was a result of upgraded facilities and a programme of investment. He believes the Government is on the right path regarding subsidies.

The wind of change is certainly blowing through the industry. Stelrad’s smaller competitors are expected to come under increased pressure on profitability, providing opportunities for Stelrad to boost its market share through business gains or competitor exits.

The company has said it will consider acquisitions which extend the range of radiators available to its sales and distribution network, expand routes to market where Stelrad’s presence is less strong, or provide a strong brand in markets where its share is low.

The group delivered substantial organic revenue growth in 2021, increasing by 38.5 per cent from £196.6m in 2020 to £272.3m and entered 2022 with “strong momentum.”

Analysts from Investec praised the group’s strong full-year results and highlighted the accelerating decarbonisation-driven demand.

Mr Harvey added: “Stelrad sees itself as a natural consolidator of the radiator market over the longer term and our main objectives are to build and retain market-leading positions in our core geographies – UK and Ireland, Europe and Turkey – and to further expand our product offering in added value premium steel panel radiators.”

He added: “While the group does not provide five-year forecasts, Investec have projected £320m revenue and £46.5m EBITDA (earnings before interest, taxation, depreciation and amortisation) by 2024 year-end, which does not factor in additional inorganic growth through merger and acquisition activity.”

There’s no doubt Mexborough will continue to be a hive of industry in this essential sector.

Trevor Harvey is the chief executive officer of the Stelrad Group, a specialist manufacturer and distributor of steel panel radiators in the UK, Europe and Turkey,

Prior to joining the group, Mr Harvey held management positions as managing director of Myson Radiators and managing director of Myson Heat Emitters, both of which operate within the radiator and heat emitter sector.

He studied at the University of Newcastle upon Tyne and graduated with a BSc (Hons) in Mechanical Engineering.

Mr Harvey is currently a director of ISG Boiler Holdings Limited, a holding company whose subsidiaries are engaged in the manufacture and distribution of boilers, and has held this position since January 2002.