Stelrad cut 90 jobs in 2023 as it delivered 'resilient' performance in face of headwinds

Stelrad said the majority of the job cuts were in Europe, although a few were at its site in Mexborough, South Yorkshire and other UK sites. The group said its current trading since the year end was in line with management expectations and Stelrad was “well positioned” for a sustained period of profitable growth when markets recover.

It announced a final dividend of 4.72p, which it said reflected the board’s confidence in the group’s prospects and balance sheet.

Trevor Harvey, the 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.

He added: “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.”

In 2023, Stelrad employed more than 1,400 people, including around 300 staff at its operations in Mexborough, which Mr Harvey described as playing a “critical role” in supporting the UK business.

Mr Harvey told The Yorkshire Post that Stelrad had a strong business and “when markets get tough, you are really able to see the value of the underlying business”.

He added: “Growing market share is at the core of our philosophy.”

Analysts from Investec said: “The group delivered a resilient performance in difficult markets in 2023.

"While a sharp volume decline hit profits, effective price and cost management underpinned an impressive improvement in contribution per radiator.

"Trading for the year to date has been in line with expectations, with markets set to remain subdued in 2024. The group is positioning itself well for market recovery with continued exposure to attractive secular growth drivers.”