Radiator group Stelrad sees revenues dip below £300m but profits rise

International radiator group Stelrad saw its revenues fall below £300m in what it described as a “subdued” market environment in various parts of the world.

The Newcastle company, which has its main manufacturing base in Mexborough, South Yorkshire, has released a trading update for 2024 in which its turnover fell 6% to around £290m. It said revenues had been helped in part by new business grains in a number of countries in the second half of the year, though overall volumes fell compared to 2023. But with increased prices and cost control measures, Stelrad is expecting its adjusted operating profit to come in at around £31.5m, a small increase on last year’s figure and ahead of market expectations.

The company highlighted “continued macroeconomic challenges across our geographies”, saying that high interest rates and inflation were continuing to impact on sales on both the new build housing market and other sales. It said it had seen a recovery in volumes in some European countries, but was expecting “continued softness in market conditions, at least through the first half of 2025. It said that trends towards better energy efficiency in housing would help its long-term prospects and it was in a strong position going into 2025.

Chief executive Trevor Harvey said: “I would like to thank the Stelrad team for delivering another year of strong growth in profitability. Stelrad’s performance in 2024, particularly in terms of growth in contribution per radiator and proactive margin management initiatives, demonstrates the strength and resilience of our business model, and further underpins our confidence in the group’s prospects.

“We continue to focus on our strategic objectives of growing market share, improving product mix, optimising routes to market, and positioning the business effectively for decarbonisation. While 2025 is expected to provide continuing market challenges, the initiatives we have undertaken will mean that our business can meet these challenges and continue to deliver long-term value for 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.