12th Aug 2024 11:40
(Alliance News) - Stelrad Group PLC on Monday raised its dividend and reported double-digit profit growth despite weaker revenue across all regions in which it operates during the first half.
The Rotherham, England-based manufacturer and distributor of radiators said pretax profit rose 14% to GBP11.7 million in the first half that ended June 30 from GBP10.3 million the previous year.
Revenue declined 8.9% to GBP143.1 million from GBP157.0 million, as cost of sales reduced 13% to GBP99.0 million from GBP113.7 million.
Stelrad raised its interim dividend 2.1% to 2.98 pence per share from 2.92p last year.
Selling & distribution expenses fell 6.5% to GBP19.9 million from GBP21.3 million, whereas administrative expenses grew 7.3% to GBP9.2 million from GBP8.5 million.
The company reported weaker performance across all markets as revenue in UK & Ireland dipped 1.5% to GBP69.1 million.
Elsewhere, Europe revenue was down 13% to GBP66.8 million due to depressed levels of repair, maintenance and improvement activity. Meanwhile, Turkey & International revenue declined 31% to GBP7.2 million as economic activity slumped in the region.
Chief Executive Officer Trevor Harvey said: "Despite continued macroeconomic challenges across Stelrad's geographies, the group has delivered a strong performance in a volume environment that remains subdued, with inflation and high interest rates continuing to suppress both RMI and new build markets.
"Stelrad remains well positioned for a sustained period of profitable growth as markets recover across our core geographies, 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."
Stelrad shares were down 1.8% to 136.55 pence each in London on Monday morning.
By Elijah Dale, Alliance News reporter
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