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RNS Number : 6930H  Stelrad Group PLC  17 November 2025

17 November 2025

Stelrad Group plc

("Stelrad" or "the Group")

Trading Update

 

Stelrad Group plc ("Stelrad" or "the Group", LSE: SRAD), a leading specialist
manufacturer and distributor of steel panel and other designer radiators in
the UK, Europe and Turkey, today issues a Trading Update for the 10 months
ended 31 October 2025.

 

Overall RMI and new build end-market activity has remained subdued since the
half year. While Stelrad's H2 versus H1 performance to date points towards a
degree of stability in the rate of volume declines, the backdrop of ongoing
economic uncertainty has continued to supress volumes, resulting in lower
revenues versus the prior year.

 

The Group continues to implement proactive margin management initiatives and
cost reduction activities, with continued operational excellence playing an
important role in offsetting declines in volumes. These actions, combined with
our focus on higher added value products, are expected to result in another
increase in contribution per radiator relative to prior year. In the absence
of any improvement in market volumes, we now expect FY25 adjusted operating
profit within a range of £32m to £33m, ahead of the prior year (FY24:
£31.5m), with positive operating margin growth year-on-year.

 

The Group's debt leverage ratio is expected to improve further during the year
supported by strong cash management (2024: 1.37x). The refinancing of the
Group's loan facility, which is expected to complete before the end of the
year, will reduce the Group's future borrowing costs. The Group's effective
tax rate for the year is expected to increase due to non-cash deferred tax
accounting charges and the country mix of profits.

 

The strength of Stelrad's leading market position, sustainable competitive
advantages and ongoing focus on operational excellence means that the Board
remains confident in the Group's long-term growth plans and structural growth
drivers that will underpin demand for higher-margin, higher added value
products, enabling above-market growth.

 

In the second half we have undertaken a restructuring of our Turkish business
which will further enhance operational margins in the future, with an
exceptional expense of c.£1.6m being incurred in 2025. We continue to assess
further opportunities that will maintain and improve the Group's competitive
position.

 

Actions taken by the business during the second half have positioned the Group
well for the eventual recovery in its markets.  In particular, the relaunched
Stelrad.com website has gained strong traction with customers with encouraging
levels of site traffic and high levels of engagement.

 

Trevor Harvey, Chief Executive of Stelrad, commented:

"Stelrad continues to deliver a strong operational performance and remains on
track to achieve growth in adjusted operating profit and margin expansion
year-on-year, despite the subdued volume environment. Whilst the continued
delay in end-market recovery remains frustrating, Stelrad's flexible, low-cost
manufacturing footprint, outstanding customer service and unmatched product
availability means that the Group remains well-positioned for the eventual
recovery in our end markets, and I remain confident in our ability to deliver
long-term value for our stakeholders."

 

- ENDS -

 

For further information:

 

 Stelrad Group plc                                   +44 (0)191 261 3301

 Trevor Harvey, Chief Executive Officer

 Leigh Wilcox, Chief Financial Officer

 Investec (Joint Corporate Broker)                   +44 (0) 207 597 4000

 Ben Griffiths / David Anderson / Tom Brookhouse

 Singer Capital Markets (Joint Corporate Broker)     +44 (0) 20 7496 3000

 Graham Hertrich / Sara Hale / James Todd

 Sodali & Co                                          stelrad@sodali.com (mailto:stelrad@sodali.com)

 James White / Pete Lambie                           +44 (0)7855 432 699

 

Notes to Editors

Stelrad Group plc is Europe's leading specialist radiator manufacturer,
selling an extensive range of hydronic, hybrid, dual fuel and electrical heat
emitters to more than 500 customers in over 40 countries. These include
standard, premium and low surface temperature (LST) steel panel radiators,
towel warmers, decorative steel tubular, steel multicolumn and aluminium
radiators.

 

The Group has five core brands: Stelrad, Henrad, Termo Teknik, DL Radiators
and Hudevad.  The Group is market leader by volume in the combined UK,
European and Turkish steel panel radiator market, with market share of 19.3%.
Excluding the Russian market, Stelrad's share was 24.2% in 2024.  The Group
is market leader in six countries - the UK, Ireland, France, the Netherlands,
Belgium and Denmark, with a top 3 position in a further 12 territories in
2024.

 

Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2024 employed
1,400 people, with manufacturing and distribution facilities in Çorlu
(Turkey), Mexborough (UK), Moimacco (Italy) and Nuth (Netherlands), with
further commercial and distribution operations in Kolding (Denmark) and Krakow
(Poland).

 

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

 

Further information can be found at: https://stelradplc.com/
(https://stelradplc.com/) .

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