Radiator manufacturer Stelrad reports 'robust performance' in 2024
Stelrad, a radiator manufacturer with a key facility in Mexborough, South Yorkshire, said it delivered a robust performance in 2024 despite challenging market conditions.
The company revealed that its operating profit for 2024 was up by 17.6 per cent to £31.4m, while a revenue decline of 5.7 per cent to £290.6m was a result of ongoing challenges in RMI (Repair, Maintenance and Improvements) and new-build markets, with high interest rates and inflation affecting activity.
Trevor Harvey, inset, Stelrad’s chief executive, said the company’s operations in Mexborough were playing a critical role in ensuring the group operated with “very high levels” of customer service.
Stelrad’s headquarters are in Newcastle upon Tyne. In 2024, it employed 1,400 people, with manufacturing and distribution facilities in Mexborough, where it has 190 staff, Çorlu, Turkey, Moimacco in Italy and Nuth in the Netherlands.
It has further commercial and distribution operations in Kolding, Denmark and Krakow, Poland.
It said volumes were improving in core European markets, including Belgium, the Netherlands, and Poland, which it said was driven by the group’s competitive strengths.
Commenting on the group’s latest full-year results, Mr Harvey said: “2024 largely saw a continuation of the challenging conditions that have characterised the wider marketplace in recent years.
"However, as a result of our rigorous focus on operational excellence, the flexibility of our business model and the strength of our market position, we have still delivered a strong financial performance across the business, despite ongoing declines in revenues and volume.
“Our focus on proactive margin management initiatives has resulted in our contribution per radiator exceeding £20 for the first time.
"An increase in the penetration of premium panel products into the UK and Ireland underpins our confidence in the role that premiumisation will continue to play in driving long-term growth.”
Mr Harvey told The Yorkshire Post: "We're only nine weeks in to the financial year. I wouldn't want to predict a market uptick. Trading is in line with expectations so far.”
"The improvement in the European market has been driven by market share gains."
Mr Harvey said Stelrad was benefiting from the legislative tailwinds of Part L building regulations in the UK which aim to reduce carbon emissions for new and refurbished buildings.
The company has also announced a recommended final dividend up 2 per cent to 4.81 pence per share. Stelrad said this reflected the board’s confidence in the group’s prospects and balance sheet.
In a statement to accompany the results, Stelrad said: “The group continues to believe that management’s considerable experience of successfully steering the business through other challenging market cycles will enable the business to navigate the ongoing market challenges and deliver another year of progress.”
Analysts from Investec said Stelrad had delivered another impressive set of results in difficult markets with significantly weaker volume.
The analyst note added: “Margins and profits increased significantly on better mix, and proactive price and cost management.”