Radiator firm Stelrad has increased profits despite seeing its revenues fall in the subdued housing and DIY markets.
The Newcastle firm, which has its main manufacturing base in South Yorkshire, has released preliminary results for 2024 in which its revenues fell 5.7% to £290.6m. But over the same period it saw a 17.6% increase in its operating profit, which went from £26.7m to £31.4m. The company pointed to cost savings initiatives, improvements on materials prices and its strong product mix.
Stelrad said that it was seeing “robust” trading in 2025 so far and was encouraged by a recovery in volumes in some of its key European markets. But it said it expected “softness” in trading to continue for the first half of this year at least.
Chief executive officer Trevor Harvey said: “2024 largely saw a continuation of the challenging conditions that have characterised the wider marketplace in recent years. However, as a result of our rigorous focus on operational excellence, the flexibility of our business model and the strength of our market position, we have still delivered a strong financial performance across the business, despite ongoing declines in revenues and volume.
“Our focus on proactive margin management initiatives has resulted in our contribution per radiator exceeding £20 for the first time, while an increase in the penetration of premium panel products into the Ƶ & Ireland underpins our confidence in the role that premiumisation will continue to play in driving long term growth. We also continue to position our business effectively for decarbonisation, promoting high output conventional radiators, developing hybrid products for low temperature systems and introducing electric ranges into our core markets.
“While we are not expecting the wider market backdrop to improve significantly during the first half of 2025, we are encouraged by our continued volume recovery in some of the group’s core European territories and remain confident that, regardless of wider macro conditions, Stelrad is able to outperform its peers and deliver continued growth for our stakeholders.”
Stelrad’s sales last year were best in the Ƶ and Ireland, which saw only a 1.5% revenue decline. Its European sales were down 6.8% in Europe due to Euro devaluation and continued sales volume declines, while revenues in its Turkey and International division fell by 27.7%.
Mr Harvey said that investment in equipment and IT infrastructure meant Stelrad was “well placed for a market recovery”. He added that increasing activity at its low-cost manufacturing base in Turkey gave the firm a competitive advantage and it would benefit from moves to decarbonise heating systems in new homes.
Stelrad, which dates back to the 1930s, is based in Newcastle with manufacturing and facilities in Mexborough, South Yorkshire and in Turkey, Italy, the Netherlands, Denmark and Poland. It employs 1,400 people and listed on the London Stock Exchange in 2021.
