Stelrad Group (SRAD) Trading Update summary

Trading performance

• Adjusted operating profit for 2024 is expected to be around £31.5m, slightly above consensus expectations, with a margin increase to 10.8%.

• Revenue declined by approximately 6% to £290m due to subdued market conditions, but H2 saw new business gains in several countries.

• Contribution per radiator rose by about 11% for the seventh consecutive year, offsetting lower volumes.

• Leverage improved to 1.4x EBITDA, maintaining strong headroom against bank facilities and covenants.

Strategic and operational highlights

• Proactive margin and cost management, along with product premiumisation, supported profitability.

• Volume recovery noted in Belgium, the Netherlands, and Poland, driven by competitive advantages.

• Continued investment in working capital aims to enhance service and future positioning.

• Focus remains on market share growth, product mix improvement, and decarbonisation positioning.

Market outlook and leadership

• Market conditions are expected to remain soft through H1 2025, but replacement demand and regulatory trends support long-term confidence.

• Stelrad holds a 20.2% share of the UK, European, and Turkish steel panel radiator market and is market leader in seven countries.

• The business model's resilience is underpinned by flexible, low-cost manufacturing and strong customer service.

• Full year preliminary results will be announced on 7 March 2025.