REG - Stelrad Group PLC - Trading Update

StelradAnnouncement

16/05/2022 07:00

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RNS Number : 4345L  Stelrad Group PLC  16 May 2022

16 May 2022

 

Stelrad Group plc

("Stelrad" or "the Group")

Trading Update

Stelrad Group plc, a leading specialist manufacturer and distributor of steel
panel radiators in the UK, Europe and Turkey, is holding its Annual General
Meeting today when the following comments will be made regarding current
trading, financial performance, and outlook for the financial year.

Year to date, the Group has performed slightly ahead of management
expectations and the outlook for the Group remains unchanged. As outlined at
the Group's full year results, while overall volumes are lower year-on-year
against very strong comparators, this softening has been more than offset by
improved margins, enhanced by cost management actions and an improved mix of
premium steel panel radiators.

Stelrad's market leading products and brands ensure that the Group remains
very well positioned across all key geographies. The Group continues to manage
inflationary cost increases and avoid any adverse impact from supply chain
dynamics through its well established supplier relationships.

The leading market position, favourable regulatory tailwinds and wider macro
trends in relation to reducing home heating costs and carbon emissions
underpin Stelrad's outlook for the current financial year and management are
confident of delivering long-term value for all our stakeholders.

Trevor Harvey, Chief Executive of Stelrad, commented:

"The Group continues to trade well thanks to our brand strength and
well-established relationships with major distributors and specifiers. As
energy prices continue to place pressure on household incomes, our products
remain central to how consumers across Europe affordably heat homes and reduce
energy consumption while governments continue to debate how best to
decarbonise homes and meet long-term net zero carbon commitments. We are
confident in our strategy and ability to continue growing our market share
both organically and through M&A as we address this important trend."

 

- ENDS -

 

For further information:

 Stelrad Group plc                        +44 (0)191 261 3301

 Trevor Harvey, Chief Executive Officer

 George Letham, Chief Financial Officer

 Investec - Sole Broker

 Bruce Garrow / Ben Griffiths

                                          stelrad@powerscourt-group.com (mailto:stelrad@powerscourt-group.com)

 Powerscourt - PR Advisor                 +44 (0)7855 432 699

 James White / Genevieve Ryan

 

Notes to Editors

 

Stelrad Group plc is a leading specialist manufacturer and distributor of
steel panel radiators in the UK, Europe and Turkey, selling an extensive range
of standard and premium steel panel radiators, low surface temperature (LST)
radiators, towel warmers, decorative steel tubular radiators and other steel
"column" radiators to more than 500 customers annually.

 

The Group has four core brands: Stelrad, Henrad, Hudevad and Termo Teknik,
which had approximately 16.6 per cent. share by volume of total markets in the
UK, Europe, and Turkey in 2020, including 50.2 per cent. market share in the
UK. In 2020, the Group held top 3 share positions in 11 countries and was #1
in the UK, Ireland, the Netherlands, Belgium and Denmark.

 

It is headquartered in Newcastle upon Tyne in the United Kingdom with
manufacturing and distribution facilities at Mexborough in the UK, Nuth in the
Netherlands and Çorlu in Turkey, employing 1,326 employees across the
business, during 2021.

 

The origins of the Group date back to the 1930s and, today, Stelrad enjoys
long established commercial relationships with many of its customers, having
served each of its top five customers for over twenty years.

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