27th Jan 2025 10:29
(Alliance News) - Stelrad Group PLC on Monday said revenue fell for the second consecutive year in 2024, but described itself as "strong" in a "subdued" market.
The Newcastle upon Tyne, England-based producer of radiators estimated revenue for 2024 around GBP290 million, down about 6% from GBP308.2 million in 2023. This in turn had been down 1.2% from GBP312.1 million in 2022.
Adjusted operating profit is expected to be GBP31.5 million in 2024, up 7.5% from GBP29.3 million in 2023. This is marginally ahead of the market consensus provided by Stelrad of GBP30.8 million.
Stelrad's sales volumes remained below the previous year, despite a slight pick-up in the second-half. The company insisted this was offset by an 11% increase in revenue contribution per radiator, thanks to cost management and a larger average radiator size.
According to Stelrad, high interest rates and inflation were the cause of slower trading in 2024.
"Despite these well-documented headwinds, management actions have delivered a robust performance," the company said.
"Continued softness in market conditions" through the first-half of 2025 did not deter Stelrad from predicting a recovery in Europe. The company also expects to benefit from regulation favouring energy-efficient heating.
Chief Executive Trevor Harvey commented: "We continue to focus on our strategic objectives of growing market share, improving product mix, optimising routes to market, and positioning the business effectively for decarbonisation."
Full 2024 results are scheduled for release on March 7.
Stelrad shares were flat at 142.00 pence each on Monday morning in London.
By Holly Munks, Alliance News reporter
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