Stelrad Group (SRAD) Trading Update summary

Market and trading environment

• RMI and new build end-market activity remained subdued, leading to lower revenues compared to the prior year.

• H2 performance showed some stability in volume declines, but economic uncertainty continues to suppress demand.

Financial performance and outlook

• Adjusted operating profit for FY25 is expected between £32m and £33m, ahead of FY24 (£31.5m), with positive margin growth.

• Debt leverage ratio is set to improve further, supported by strong cash management.

• Refinancing of the loan facility will reduce future borrowing costs.

• Effective tax rate will increase due to non-cash deferred tax charges and profit mix.

Operational initiatives and strategic actions

• Margin management and cost reduction initiatives are offsetting volume declines.

• Focus on higher added value products is increasing contribution per radiator.

• Turkish business restructuring in H2 will enhance future margins, incurring a £1.6m exceptional expense.

• Relaunched Stelrad.com website has seen strong customer engagement and traffic.