Radiator group Stelrad has warned of a decline in sales around the world but says it is seeing “early signs of recovery” in some countries.
The Newcastle-based firm, which has its main manufacturing base in South Yorkshire, has released a trading update ahead of its annual general meeting, saying that trading this year has been in line with management expectations. Stelrad said in March that subdued new build and renovation activity in the housing market, caused by high inflation and interest rates, had impacted on its sales, with revenues down 12.9% on a like-for-like basis.
In today’s trading update, the company said that its “end markets remain challenging, with further year on year volume declines across most geographies.” But it said that it was seeing “early signs of recovery in some core territories” and that its financial performance remained strong, thanks in part to cost savings undertaken last year.
Chief executive Trevor Harvey said: “Stelrad has had an encouraging start to 2024 with management’s experience, aided by the flexibility of our business model, helping to successfully navigate ongoing tough market conditions while underpinning our confidence in delivering on our full year expectations.
“Having further consolidated our place as market leader of both the steel panel radiator category and the hydronic heat emitter market across Europe, the UK and Turkey, Stelrad’s initiative to expand its portfolio of higher margin, higher heat output radiators, which have a long-term role to play in the delivery of lower carbon domestic heating, has driven a 6% increase in Stelrad UK’s first quarter 2024 average heat output per radiator, relative to the prior year. This has had a positive impact on both average selling price per radiator and margin percentage.
“The group remains well positioned for market recovery and the structural tailwinds from decarbonisation. We are confident in our ability to continue growing market share and delivering long-term, increasing value for all our stakeholders.”
Stelrad, which can trace its history back to the 1930s, employs around 1,300 people worldwide, with bases in the UK, Italy, the Netherlands, Denmark and Poland. It is the leading radiator seller in the UK, Ireland, France, the Netherlands, Belgium, Denmark and Greece. The company listed in the Stock Exchange in 2021.
The company – which recorded revenues of £308.2m and operating profit of £26.7m in 2023 – will issue interim half-year results on June 30.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber
