Stelrad has reported a drop in revenue as it grappled with a “continued reduction” in demand throughout the first half of the year.
The London-listed radiator supplier brought in £143.1m in the six months ended 30th June, down 8.9 per cent in last year’s haul.
In a statement, Stelrad noted revenue depression in its European and Turkey and International segments, where revenue fell 12.6 per cent and 30.6 per cent respectively.
Launched in 1936, Stelrad is British-based manufacturer of steel panel radiators, which employs over 1,400 people. Its Elite model is the most popular radiator in the United Kingdom.
“Despite continued macroeconomic challenges across Stelrad’s geographies, the group has delivered a strong performance in a volume environment that remains subdued, with inflation and high interest rates continuing to suppress both RMI and new build markets,” Trevor Harvey, Chief Executive Officer, said.
On an adjusted basis, operating profit rose 12.8 per cent to £15.7m. Earnings before interest, taxation, depreciation and amortisation (EBITDA) also increased by 9.9 per cent to £21.7m.
Stelrad said its full-year guidance remained unchanged, with the board “confident” in its long-term growth plans. “There have been some early indicators of a recovery in the volumes in some of the group’s European territories, with recent volume increases in Belgium, the Netherlands, Poland and Sweden,” the firm said in a statement.
Harvey added: “Stelrad’s performance during the period, particularly in terms of market share growth and growth in contribution per radiator, combined with cost base reduction and ongoing margin optimisation actions, demonstrates the strength of our business model, and further underpins the Board’s confidence in the outlook for the full year.
Shares have risen around 4 per cent this year to date.
The company was listed on the London Stock Exchange in November 2021, and it achieved a valuation of £274m.