7th Mar 2025 11:59
(Alliance News) - Stelrad Group PLC on Friday said it is seeing a recovery in some of its core European territories, as it posted a higher profit amid lower cost of sales.
The Newcastle upon Tyne, England-based producer of radiators said pretax profit rose 22% to GBP23.4 million in 2024 from GBP19.2 million in 2023.
Operating profit jumped 18% to GBP31.4 million from GBP26.7 million.
Revenue fell 5.7% to GBP290.6 million from GBP308.2 million.
Cost of sales decreased faster than revenue, by 8.9% to GBP201.6 million from GBP221.3 million. Further, administrative costs decreased by 10% to GBP17.2 million from GBP19.1 million.
Stelrad recommended a final dividend of 4.81 pence per share, up 1.9% from 4.72p a year prior. This brings the total payout for 2024 to 7.79p, up 2.0% from 7.64p in 2023.
Looking ahead, the company said it continued to expect softness in market conditions for the first half of 2025 at least, but noted a recovery in volumes in some of its core European territories such as Belgium, the Netherlands and Poland.
Chief Executive Officer Trevor Harvey said: "While we are not expecting the wider market backdrop to improve significantly during the first half of 2025, we are encouraged by our continued volume recovery in some of the group's core European territories and remain confident that, regardless of wider macro conditions, Stelrad is able to outperform its peers and deliver continued growth for our stakeholders."
Chair Bob Ellis said: "We remain confident that the group is well positioned for growth, with strong embedded replacement demand across Europe, an increasing drive for premiumisation and long-term regulatory tailwinds for decarbonised heating systems."
Stelrad shares fell 3.8% to 134.20 pence each on late Friday morning in London.
By Tom Budszus, Alliance News slot editor
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