Stelrad Group plc

("Stelrad" or "the Group" or "the Company)

 

Interim results for the six months ended 30 June 2025

 

Continued market leadership, resilient underlying financial performance with outlook for the full year unchanged

 

Stelrad Group, a leading specialist manufacturer and distributor of steel panel and other designer radiators in the UK, Europe and Turkey, today announces its unaudited interim results for the six months ended 30 June 2025.

 

Results summary

 

	Six months ended 30 June 2025		Six months ended 30 June 2024		Movement %
Revenue, £m	136.5		143.1		(4.6)
Adjusted operating profit, £m (1)	15.9		15.7		1.1
Adjusted operating profit margin, % (1)	11.7		11.0		0.7 ppts
Adjusted profit for the period, £m (1)	8.2		8.1		1.0
Adjusted earnings per share - basic, pence (1)	6.41		6.34		1.0
Operating profit, £m	3.8		15.6		(75.5)
Operating profit margin, %	2.8		10.9		(8.1) ppts
(Loss)/profit for the period, £m	(3.4)		8.0		(142.9)
(Loss)/earnings per share - basic, pence	(2.71)		6.30		(142.9)
Free cash flow, £m (1)	1.8		1.3		27.7
Return on capital employed, %	26.9		26.4		0.5 ppts
Net debt before lease liabilities, £m	64.8		64.6		0.3
Dividend per share, pence	3.04		2.98		2.0

 

(1)  The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement.

 

Continued market leadership underpinned by operational excellence

·      Industry leading market share at 19.9%* (2023: 20.9%) with the reduction due to the impact of market mix across the countries we serve.   

^*BRG Building Solutions, May 2025. In the 20 European countries (including Turkey and Russia) for which 2024 steel panel radiator share data is available (which represented 94% of the European market in 2023).

o  Excluding Russia, where the Group chooses not to participate, market share was 25.4% (2023: 25.3%).

·      On Time In Full (OTIF) delivery was 99% (2024: 98%) in the UK & Ireland, a key point of differentiation versus our competitors.

·      Contribution per radiator remained stable at £20.33 (2024: £20.48) supported by active margin management providing strong operational leverage.

 

Resilient financial performance in a supressed volume environment

·      Adjusted operating profit rose to £15.9 million, an increase of 1.1%, benefitting from ongoing margin management and structural currency gains. Adjusted operating profit margin increased 0.7 ppts to 11.7%.

·      Non-cash exceptional items of £12.0 million (2024: £nil) relating to impairment charge on the assets of Radiators SpA.

·      Operating profit on a statutory basis was £3.8 million (2024: £15.6 million), after the £12.0 million non-cash exceptional items.

·      Revenue declined 4.6% to £136.5 million, despite continued pricing discipline, as a result of ongoing volume challenges from subdued demand in RMI and new build markets.

o  UK & Ireland: revenue declined 5.8% supported in part by favourable increase in average radiator size, partially offsetting a 9.6% volume reduction.

o  Europe: revenue declined 5.9% as a result of reduced volumes.

o  Turkey & International: revenue increased 17.9%, to £8.5 million, due to increased volumes in the Turkish market.

·      Positive free cash flow of £1.8m (2024: £1.3m), despite typical seasonal high point and selective investments in working capital to enhance service levels in the UK market.

·      Return on capital employed increased by 0.5 ppts to 26.9% (2024: 26.4%).

·      Leverage(1) at 30 June 2025 was 1.48x (December 2024: 1.37x), based on net debt before lease liabilities.

·      Interim dividend increased by 2% to 3.04 pence per share (2024 interim dividend: 2.98 pence), to be paid on 24 October 2025, reflecting the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation.

 

Outlook

·      Whilst the current market environment remains subdued, the Board expects a modest level of market volume improvement in the second half of the year augmented by the strength of Stelrad's market position, sustainable competitive advantages and operational excellence. 

·      Proactive margin management and cost discipline leave the Group well placed to achieve unchanged Board expectations of further adjusted profit growth in FY25.

 

Commenting on the Group's performance, Trevor Harvey, Chief Executive Officer, said:

"During the period, we delivered a resilient financial performance against a backdrop of ongoing economic uncertainty suppressing volumes in the Group's key markets. Crucially, despite this environment, we have maintained our market leadership position and continued to enhance the flexibility of our operational capabilities.

 

"The Board remains confident in its long-term growth plans and in driving continued shareholder value. The key priority for the Group is to be prepared for an increase in volumes as and when market conditions improve. We know from our years of experience and long-standing position in the market that when volumes begin to recover, this happens at pace."

                                      

Analyst Conference Call

Trevor Harvey (CEO) and Leigh Wilcox (CFO) will host an analyst presentation at 9.00 a.m. today, 8 August 2025.

 

The presentation will be broadcast live at https://brrmedia.news/SRAD_HY_2025

 

To dial in via a phone line, please use the below dial in details:

 

Dial in number(s):	UK-Wide: +44 (0) 33 0551 0200   UK Toll Free: 0808 109 0700
Password (if prompted):	Please quote 'Stelrad HY25' when prompted by the operator

 

For further information:

 

Stelrad Group plc Trevor Harvey, Chief Executive Officer Leigh Wilcox, Chief Financial Officer	+44 (0) 191 261 3301
Investec (Joint Corporate Broker) Ben Griffiths / David Anderson / Tom Brookhouse	+44 (0) 207 597 4000
Singer Capital Markets (Joint Corporate Broker) Graham Hertrich / Sara Hale / James Todd	+44 (0) 20 7496 3000
Sodali & Co James White / Pete Lambie	stelrad@sodali.com +44 (0)7855 432699

 

Notes to Editors

Stelrad Group plc is Europe's leading specialist radiator manufacturer, selling an extensive range of hydronic, hybrid, dual fuel and electrical heat emitters to more than 500 customers in over 40 countries. These include standard, premium and low surface temperature (LST) steel panel radiators, towel warmers, decorative steel tubular, steel multicolumn and aluminium radiators.

 

The Group has five core brands: Stelrad, Henrad, Termo Teknik, DL Radiators and Hudevad.  The Group is market leader by volume in the combined UK, European and Turkish steel panel radiator market. In the 20 countries for which 2024 steel panel radiator share data is now available (which represented 94% of the European market in 2023), Stelrad's market shares was 19.9%. The Group is market leader in seven countries - the UK, Ireland, France, the Netherlands, Belgium, Denmark and Greece, with a top 3 position in a further 11 territories in 2023. 

 

Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2024 employed 1,400 people, with manufacturing and distribution facilities in Çorlu (Turkey), Mexborough (UK), Moimacco (Italy) and Nuth (Netherlands), with further commercial and distribution operations in Kolding (Denmark) and Krakow (Poland).

 

The Group's origins date back to the 1930s and Stelrad enjoys long established commercial relationships with many of its customers, having served each of its top five current customers for over twenty years.

 

Further information can be found at: https://stelradplc.com/.

 

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.

 

CHIEF EXECUTIVE OFFICER'S REVIEW

During the period, we delivered a resilient financial performance against a backdrop of ongoing economic uncertainty suppressing volumes in the Group's key markets. Crucially, despite this environment, we have maintained our market leadership position and continued to enhance the flexibility of our operational capabilities.

 

Sustainable competitive advantages in an attractive market

The key priority for the Group is to be prepared for an increase in volumes as and when market conditions improve. While the current market environment remains subdued, we know, from our years of experience and long-standing position in the market, that when volumes begin to recover, this happens at pace.

 

It is therefore critical for us, as a management team, to ensure that our business is well placed to take advantage of this recovery. 

 

Stelrad's commercial position remains underpinned by our sustainable competitive advantages of:

1. Our flexible, lowest-cost manufacturing base, with a robust supply chain and industry leading production capacity.

2. Leading levels of customer service and product availability, with the best on-time in full delivery in the industry of 99% in the UK & Ireland.

 

These have helped to both grow and consolidate our market share position over the last five years, positioning the Group as the supplier of choice for customers regardless of market conditions.

 

These sustainable competitive advantages position us well in a market that remains fundamentally attractive and supported by favourable, long-term trends.

 

There are over 321 million homes in Europe with central heating, of which 93% have hydronic heating systems. This equates to >1.8 billion hydronic heat emitters, 56% of which are steel panel radiators. There is a significant long-term replacement market opportunity that we are well-positioned to address, with market leadership in seven of our European markets and an addressable market share of 25.4%.

 

As the market leader, Stelrad is also well positioned to both drive and benefit from long-term structural growth drivers that will underpin demand for higher-margin, higher added-value products, enabling above-market growth.

 

Firstly, increased customer demand for premium panel, designer radiators. The UK market remains under-developed compared to other core countries and Stelrad has developed a clear, three-point strategy to leverage trade strengths, boost consumer appeal and optimise routes to market for designer radiators.

 

Secondly, the decarbonisation of home heating systems provides both a structural legislative tailwind as well as a growing market for larger, higher heat output conventional radiators, hybrid radiator products and electric radiator ranges. The first half saw this trend reflected in another period of growth in average radiator size. 

 

Continued operational excellence and commercial discipline

During the period, the Group experienced a continued decline in volumes of 4.8%, driven primarily by the UK & Ireland (9.6% decline) and European markets (3.8% decline), albeit with an improving volume environment in our smaller segment of Turkey & International (29.5% increase). Revenue declined 4.6% to £136.5 million (2024: £143.1 million), albeit to a lesser degree than the volume decline, reflecting the continued strength of our market position and the ongoing favourable impact of larger heat output radiators in the UK.

 

Over the last three years, the Group has maintained a strong focus on cost reduction initiatives. These initiatives are now embedded in our operations, ensuring our key metric of contribution per radiator remains above £20, despite a marginal decrease in premium panel penetration in the UK year-on-year due to low consumer confidence.

 

Our focus remains on maintaining our operational excellence, coupled with commercial discipline, ensuring that we continue to consolidate our market share and leadership while maintaining pricing discipline and margin contribution.

 

During the period, we took significant steps to embed commercial discipline within our European operations, particularly in Radiators SpA. We have recognised a non-cash £12.0 million impairment charge on the assets of Radiators SpA, primarily reflecting the exposure to declining volumes in the French and German markets since the business was acquired. The Group has taken decisive action to terminate all supply under a loss-making contract for steel panel radiators, effective at the end of 2025 following unsuccessful price negotiations between Radiators SpA and the customer during the period. The exit from this contract will be immediately margin-enhancing at a Group level and provides the opportunity to focus the Radiators SpA business on electrical and designer products - the key ranges that underpinned the strategic rationale for our acquisition in 2022. The strategic acquisition case for Radiators SpA remains integral to the Group, with the business providing increased access to new channels to markets and a product range orientated towards higher added value designs, including those suitable for decarbonised heating systems.

 

As a result of our ongoing operational excellence and commercial discipline across the Group, we have continued to grow our adjusted operating profit, which increased 1.1% during the year to £15.9 million (2024: £15.7 million).

 

Progress with strategic priorities

Our four key strategic priorities are to (1) grow market share, (2) improve product mix, (3) optimise our routes to market and (4) position effectively for decarbonisation.

 

We continue to be the market leader across the UK and Europe, with a market share of 19.9%. While this share has declined marginally over the past year, this is primarily a result of market mix across the countries we serve, with market growth in Russia, where the Group chooses not to participate, alongside weaker market volumes in the UK. Excluding the Russian market, the Group's market share position is 25.4% (2023: 25.3%).

 

In terms of product mix, while we have seen a short-term impact from ongoing economic uncertainty in the UK on the penetration of premium panel radiators, we have made tangible progress on our strategy to drive adoption of designer radiators as the market leader. The refreshed Stelrad.com website has now been launched, optimising the consumer journey and broadening our routes to market for designer radiators where there is a greater level of direct consumer input. We have also launched our 48 hour designer radiator service to enhance customer service levels for these products and remove long lead time perceptions. Management remains confident in the opportunity, underpinned by the initiatives undertaken, to improve the penetration of premium products in the UK as market conditions and consumer confidence improve.

 

We continue to see long-term structural tailwinds from the decarbonisation of commercial and residential property stock, with the average radiator size increasing by 2.5% during the period. We continue to further expand our high heat output and hybrid heat emitter radiator portfolios, alongside leveraging our brand strength and channel access to drive electric radiator sales in core markets.

 

Interim dividend

The Board has declared an interim dividend of 3.04 pence per share, an increase of 2%.  The interim dividend will be paid on 24 October 2025 to shareholders on the register on 10 October 2025. This increase reflects the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation.

 

Outlook

Whilst the current market environment remains subdued, the Board expects a modest level of market volume improvement in the second half of the year augmented by the strength of Stelrad's market position, sustainable competitive advantages and operational excellence.

 

Proactive margin management and cost discipline leave the Group well placed to achieve unchanged Board expectations of further adjusted profit growth in FY25.

 

The Board remains confident in its long-term growth plans and in driving continued shareholder value. The key priority for the Group is to be prepared for an increase in volumes as and when market conditions improve. We know from our years of experience and long-standing position in the market that when volumes begin to recover, this happens at pace.

 

Trevor Harvey

Chief Executive Officer

8 August 2025

 

 

FINANCE AND BUSINESS REVIEW

 

Group overview

The following table summarises the Group's results from operations for the six months ended 30 June 2025 and 30 June 2024.

 

	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement	Movement
	£m	£m	£m	%
Revenue	136.5	143.1	(6.6)	(4.6)
EBITDA(1)	21.8	21.7	0.1	0.5
Adjusted operating profit(1)	15.9	15.7	0.2	1.1
Exceptional items	(12.0)	-	(12.0)	n/a
Amortisation of customer relationships	(0.1)	(0.1)	-	1.5
Operating profit	3.8	15.6	(11.8)	(75.5)
Net finance costs	(3.7)	(3.9)	0.2	5.0
Profit before tax	0.1	11.7	(11.6)	(99.2)
Income tax expense	(3.5)	(3.7)	0.2	4.2
(Loss)/profit for the period	(3.4)	8.0	(11.4)	(142.9)
(Loss)/earnings per share - basic (p)	(2.71)	6.30	(9.01)	(142.9)
Adjusted profit for the period(1)	8.2	8.1	0.1	1.0
Adjusted earnings per share - basic (p)(1)	6.41	6.34	0.07	1.0
Dividend per share (p)	3.04	2.98	0.06	2.0
Return on capital employed (%)(1)	26.9	26.4	n/a	0.5 ppts
Net debt before lease liabilities(1)	64.8	64.6	0.2	0.3

 

(1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement.

 

Financial overview

A resilient adjusted operating performance driven by ongoing margin management and structural currency gains allowed the Group to offset the impact of a continued reduction in demand during the first half of 2025. Whilst there were positive year-on-year trends across some of our core European geographies, UK & Ireland continued to see subdued renovation activity driven by a challenging macroeconomic environment related to continued high interest rates and inflation.

 

Revenue for the six months ended 30 June 2025 was £136.5 million, a decrease of £6.6 million, or 4.6%, on the six months ended 30 June 2024 (2024: £143.1 million). The decline in revenue was mainly due to a 4.8% decline in sales volumes during the period. Selling prices have benefitted from a third successive annual increase in average radiator size in the UK and stronger European sales at higher prices.

 

Adjusted operating profit for the period was £15.9 million, an increase of £0.2 million, or 1.1%, compared to the same period last year (2024: £15.7 million). The increase in adjusted operating profit arose despite the 4.8% decrease in sales volumes. Adjusted operating profit grew due to the benefits of favourable material price and structural currency benefits, partially offset by lower sales volumes. The structural currency benefits arise from the way the Group has structured its Turkish operations, with the gain being a result of the year to date devaluation of the Turkish Lira against the Euro which will further benefit the cost base of our Turkish operations in the future.

 

Operating profit for the period was £3.8 million, a decrease of £11.8 million, or 75.5%, compared to the prior year (2024: £15.6 million). Operating profit is stated after the deduction of non-cash exceptional items of £12.0 million (2024: £nil) and the amortisation of customer relationships of £0.1 million (2024: £0.1 million).

 

Supported by continued operational control and margin management, despite a challenging market environment, contribution per radiator has remained in excess of £20 at £20.33, providing the Group with very strong operating leverage that will drive considerable profitability improvements when volumes recover. The Group continues to push the sale of premium products throughout its markets, recognising the additional margin that these products generate. The proportion of premium panel sales to total volumes was 5.7% with further progress expected as the economic environment improves.

 

The statutory loss for the period was £3.4 million (2024: profit of £8.0 million) due to the non-cash exceptional items of £12.0 million (2024: £nil). Adjusted profit for the period grew by £0.1 million to £8.2 million (2024: £8.1 million). Interest charges reduced by £0.2 million year-on-year as interest rates continue to fall. Tax charges decreased marginally year-on-year due to a credit linked to the exceptional items.

 

Loss per share was 2.71 pence (2024: earnings per share of 6.30 pence). Adjusted earnings per share was 6.41 pence (2024: 6.34 pence). 

 

At 30 June 2025 the Group had cash of £17.6 million (December 2024: £18.6 million) and undrawn available facilities of £17.9 million (December 2024: £21.1 million), with net debt before lease liabilities of £64.8 million (December 2024: £59.7 million).

 

Working capital at 30 June 2025 reflects a seasonal high point prior to the heating season, with the lowest level of working capital historically experienced in December. Selective investments in working capital have been made in the period to enhance customer relationships in the UK market. The Group expects a reduction in net debt by the end of the financial year, reflecting the seasonality of working capital investment.

 

The Group has made pleasing progress towards its medium-term targets in the period, despite challenging market conditions, with growth in both adjusted operating profit margins and return on capital employed. The Board remain confident in the ability for the Group to achieve all medium-term targets.

 

Revenue by geographical market

The table below sets out the Group's revenue by geographical market.

 

Revenue by geographical market	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement	Movement
	£m	£m	£m	%
UK & Ireland	65.1	69.1	(4.0)	(5.8)
Europe	62.9	66.8	(3.9)	(5.9)
Turkey & International	8.5	7.2	1.3	17.9
Total	136.5	143.1	(6.6)	(4.6)

 

UK & Ireland

The Group's revenue in the UK & Ireland for the period was £65.1 million (2024: £69.1 million), a decrease of £4.0 million, or 5.8%. This was principally a result of a decrease in sales volumes of 9.6%, partially offset by a continued increase in the average size of radiators sold, with a 2.5% year-on-year higher output, though the penetration of premium panel products sold was impacted by low UK consumer confidence.

 

Europe

The Group's revenue in Europe for the period was £62.9 million (2024: £66.8 million), a decrease of £3.9 million, or 5.9%, as a result of a 3.8% decrease in sales volumes and the impact of higher average Euro exchange rates in the period. Encouragingly, we note certain key geographies in Europe have shown a year-on-year increase in volumes, including Belgium, Poland, France and Germany.

 

Turkey & International

The Group's revenue in Turkey & International for the period was £8.5 million (2024: £7.2 million), an increase of £1.3 million, or 17.9%. This was principally a result of higher volumes sold in Turkey due to an improvement in market conditions.

 

Adjusted operating profit by geographical market

The table below sets out the Group's adjusted operating profit by geographical market.

 

Adjusted operating profit by geographical market	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement	Movement
	£m	£m	£m	%
UK & Ireland	15.0	15.1	(0.1)	(0.3)
Europe	3.6	3.7	(0.1)	(5.4)
Turkey & International	0.7	0.9	(0.2)	(17.6)
Central costs	(3.4)	(4.0)	0.6	14.7
Total	15.9	15.7	0.2	1.1

 

UK & Ireland

The Group's adjusted operating profit in the UK & Ireland for the period was £15.0 million (2024: £15.1 million), a decrease of £0.1 million, or 0.3%. The result includes the benefit of favourable material prices and the increase in the average size of radiators sold offset by lower sales volumes.

 

Europe

The Group's adjusted operating profit in Europe for the period was £3.6 million (2024: £3.7 million), a decrease of £0.1 million, or 5.4%. A high fixed cost base in Europe, combined with the sales volume decrease, has led to a reduction in operating margin percentage in recent years. We expect margins for the Europe segment, to recover in line with market recovery as variable profit margins remain strong.

 

The Group will continue to focus on improving the margins of Radiators SpA's sales, with the exit from a significant loss-making contract at the end of 2025 providing renewed opportunity to focus business efforts on the product ranges which are unique to Radiators SpA.

 

Turkey & International

The Group's adjusted operating profit in Turkey & International for the period was £0.7 million (2024: £0.9 million), a decrease of £0.2 million, or 17.6%. The decrease is due to country mix with a growth in Turkish sales which are traditionally at lower margins.  

 

Central costs

Central costs, including Group LTIP charges, for the period were £3.4 million (2024: £4.0 million), a decrease of £0.6 million, or 14.7%. The reduction is due to the removal of one-off costs from the prior year.

 

Exceptional items

Operating profit is stated after exceptional items of £12.0 million. The non-cash exceptional items relate to impairment of goodwill of £2.6 million, impairment of customer relationships of £1.4 million, impairment of property, plant and equipment of £5.7 million and a provision against inventories of £2.3 million, all within the Radiators SpA business.

 

The Radiators SpA business has been exposed to declining market volumes in France and Germany (c.30% reduction) since its acquisition in July 2022, resulting in deteriorating operating margins despite active fixed cost management. Since the acquisition, the business has been impacted by a significant low margin, and latterly a loss-making contract, for the supply of steel panel radiators which has contributed to suppressed European operating margins.

 

Negotiations during the period to reset the price on this contract have been unsuccessful and, in line with the Group's focus on commercial discipline, decisive action has been taken to terminate all supply under this contract, effective at the end of 2025. Whilst the exit from this loss-making contract will negatively impact future revenue and volumes, it will result in improved contribution and the opportunity to reduce fixed costs in the short-term. The exit from the contract presents an increased opportunity to focus attention on the electrical and designer product ranges which are unique to this division and were the key strategic rationale for acquiring the business. The refocussed business will be underpinned by a rationalised product profile that will provide greater operational efficiency.

 

Finance costs

The Group's finance costs for the period were £3.7 million (2024: £3.9 million). The decrease of £0.2 million is due to comparatively lower interest rates (blended 5.6%) in the first half of 2025 with a small reduction in interest rates expected in the second half of 2025.

 

Income tax expense

The Group's income tax expense for the period was £3.5 million (2024: £3.7 million), a decrease of £0.2 million with the expense reduced due to a credit linked to the exceptional items in the period.

 

(Loss)/earnings per share and adjusted earnings per share

Results for the period reduced to a loss of £3.4 million (2024: profit of £8.0m) and basic loss per share was 2.71 pence (2024: earnings per share 6.30 pence) due to the impact of the exceptional items, net of tax, of £11.6 million in the period (2024: £nil). The weighted average number of shares was 127.4 million (2024: 127.4 million).

 

Adjusted profit for the period increased to £8.2 million (2024: £8.1 million) and consequently basic adjusted earnings per share was 6.41 pence (2024: 6.34 pence).

 

Dividend

The Group is committed to delivering returns for its shareholders via a progressive dividend policy. The Board has confidence in the Group's financial position and believes that its leading market positions, regulatory tailwinds, product premiumisation upside and favourable contribution per radiator will lead to strong future financial performance, as demonstrated by the Group's medium-term targets published at our Capital Markets Event in November 2024. On this basis, despite suppressed earnings caused by trading headwinds, the Group intends to pay an interim dividend of 3.04 pence per share, an increase of 2% on the 2024 interim dividend, on 24 October 2025 to shareholders on the register on 10 October 2025.

 

The Group paid its final dividend for 2024 of 4.81 pence per share in May 2025, resulting in a total dividend for 2024 of 7.79 pence per share.

 

Cash flows

The following table summarises the Group's cash flow for the six months ended 30 June 2025 and 30 June 2024.

 

	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement
	£m	£m	£m
EBITDA	21.8	21.7	0.1
Gain on disposal of property, plant and equipment	(0.1)	(0.1)	-
Share-based payment charge	0.6	0.3	0.3
Working capital	(9.0)	(9.8)	0.8
Net capital expenditure	(3.7)	(3.1)	(0.6)
Cash flow from operations(1)	9.6	9.0	0.6
Income tax paid	(4.8)	(4.0)	(0.8)
Net interest paid	(3.0)	(3.7)	0.7
Free cash flow(1)	1.8	1.3	0.5
Cash flow from operations	9.6	9.0	0.6
Adjusted for
Exceptional items, impact on working capital	-	2.2	(2.2)
Adjusted cash flow from operations	9.6	11.2	(1.6)

 

	Six months ended 30 June 2025	Six months ended 30 June 2024	Movement
Cash flow from operations(1) (£m)	9.6	9.0	0.6
Adjusted cash flow from operations(1) (£m)	9.6	11.2	(1.6)
Adjusted operating profit(1) (£m)	15.9	15.7	0.2
Cash flow from operations conversion(1) (%)	60.5	57.7	2.8ppts
Adjusted cash flow from operations conversion(1) (%)	60.5	71.5	(11.0)ppts

 

(1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement.

 

The Group's free cash inflow for the period was £1.8 million (2024: £1.3 million), an increase of £0.5 million. This reflects investments in capital expenditure and higher tax paid, partially offset by lower interest payments. During quarter four of 2024, the Group undertook a proactive price realignment exercise on its core range of contract products in the UK with equal reductions in both list prices and rebates. The price realignment is a commercial initiative designed to make the price points of our contract products more competitive and enhance customer relationships. During 2025, because of the reduction in the level of rebates, there has been an increase in working capital. The Group's UK business became cash tax paying in the period, after fully utilising its historic tax losses, which contributed to the increase in income tax paid.

 

The Group's cash inflow from operations for the period was £9.6 million (2024: £9.0 million), an increase of £0.6 million. Adjusted operating profit for the period was £15.9 million (2024: £15.7 million), an increase of £0.2 million. Cash flow from operations conversion for the period was 60.5% (2024: 57.7%). Adjusted cash flow from operations conversion for the period was 60.5% (2024: 71.5%).

 

Capital expenditures

The Group's capital expenditures mainly relate to investment in operating plant and equipment. Key capital expenditure in the period ended 30 June 2025 related to various maintenance and upgrade projects. Capital expenditure for the remainder of 2025 will be in line with expectations.

 

Return on capital employed and capital allocation priorities

Return on capital employed for the period was 26.9% (2024: 26.4%), an increase of 0.5 ppts. This improvement is partially due to the impairment of assets and an increase in adjusted operating profit, partially offset by the investment made in working capital.

 

Capital allocation considerations remain high on the Group's agenda, and both the 2024 and 2025 investments in working capital are considered a key part of the Group's prioritisation of investment for organic growth under its capital allocation framework set out at the Capital Markets Event in November 2024. Additionally, alongside the investment in organic growth during 2024 and 2025, dividends have progressively increased by 2%, whilst the Group's debt leverage ratio before lease liabilities has remained stable at 1.48x (30 June 2024: 1.49x), demonstrating a controlled and balanced approach to capital allocation and balance sheet prudence given the challenging macroeconomic environment.

 

Net debt and leverage

At 30 June 2025, net debt (including lease liabilities) of £73.1 million (December 2024: £67.6 million) comprises £82.4 million (December 2024: £78.3 million) drawn down against the multicurrency facility and £8.3 million (December 2024: £7.9 million) lease liabilities net of £17.6 million (December 2024: £18.6 million) cash.

 

	30 June 2025	31 December 2024
	£m	£m
Revolving credit facility - GBP	44.4	41.8
Revolving credit facility - EUR	13.7	13.1
Term loan	24.3	23.4
Cash	(17.6)	(18.6)
Net debt before lease liabilities	64.8	59.7
Lease liabilities	8.3	7.9
Net debt	73.1	67.6
EBITDA (rolling 12 months)	43.8	43.5
Debt leverage ratio before lease liabilities	1.48x	1.37x

 

The debt leverage ratio before lease liabilities at 30 June 2025 was 1.48x (31 December 2024: 1.37x; 30 June 2024: 1.49x).

 

Going concern

After reviewing the Group's current liquidity, net debt, financial forecasts and stress testing of potential risks, the Board confirms there are no material uncertainties which impact the Group's ability to continue as a going concern for at least twelve months from the date of approval of the financial statements and therefore these condensed consolidated interim financial statements have been prepared on a going concern basis.

 

The financial position of the Group remains robust. The Group has in place a £100 million multicurrency facility, made up of a £76.0 million revolving credit facility and a €28.3 million term loan facility. At 31 December 2024, the entire term loan was drawn along with £58.1 million of the revolving credit facility. The facility matures in November 2026.

 

As the £100 million bank loan facility is maturing in November 2026, refinancing discussions with lenders commenced during the first half of 2025. The expectation is that the loan will be refinanced.

 

Leigh Wilcox

Chief Financial Officer

8 August 2025

 

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:

·      an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and

·      material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.

 

The directors of Stelrad Group plc are listed in the Annual Report and Accounts for the year ended 31 December 2024.

 

For and on behalf of the Board

 

 

Leigh Wilcox     

Chief Financial Officer      

8 August 2025    

 

Stelrad Group plc. Registered number 13670010

 

 

Independent review report to Stelrad Group plc

Report on the condensed consolidated interim financial statements

Our conclusion

We have reviewed Stelrad Group Plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim results of Stelrad Group Plc for the 6 month period ended 30 June 2025 (the "period").

 

Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

 

The interim financial statements comprise:

·      the Condensed consolidated interim balance sheet as at 30 June 2025;

·      the Condensed consolidated interim income statement and condensed consolidated interim statement of comprehensive income for the period then ended;

·      the Condensed consolidated interim statement of cash flows for the period then ended;

·      the Condensed consolidated interim statement of changes in equity for the period then ended; and

·      the explanatory notes to the interim financial statements.

 

The interim financial statements included in the Interim results of Stelrad Group Plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.

 

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

 

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

We have read the other information contained in the Interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.

 

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.

 

Responsibilities for the interim financial statements and the review

 

Our responsibilities and those of the directors

The Interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

 

Our responsibility is to express a conclusion on the interim financial statements in the Interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

 

 

PricewaterhouseCoopers LLP

Chartered Accountants

Newcastle upon Tyne

8 August 2025

 

 

Stelrad Group plc

Condensed consolidated interim income statement

for the six months ended 30 June 2025

                                                 

		Six months ended 30 June 2025 (not audited)		Six months ended 30 June 2024 (not audited)		Year ended 31 December 2024 (audited)
	Notes	£'000		£'000		£'000
Continuing operations
Revenue	5	136,475		143,116		290,577
Cost of sales		(93,991)		(98,987)		(201,617)
Gross profit		42,484		44,129		88,960
Selling and distribution expenses		(19,699)		(19,922)		(41,729)
Administrative expenses		(8,788)		(9,164)		(17,165)
Other operating income/(expenses)	6	1,848		624		1,319
Exceptional items	7	(12,001)		-		-
Operating profit	5	3,844		15,667		31,385
Finance income		86		113		186
Finance costs		(3,832)		(4,057)		(8,189)
Profit before tax		98		11,723		23,382
Income tax expense	8	(3,543)		(3,699)		(6,864)
(Loss)/profit for the period		(3,445)		8,024		16,518
	Notes
(Loss)/earnings per share
Basic	9	(2.71)p		6.30p		12.97p
Diluted	9	(2.66)p		6.26p		12.87p
Adjusted earnings per share
Basic	9	6.41p		6.34p		13.05p
Diluted	9	6.30p		6.30p		12.94p

 

Stelrad Group plc

Condensed consolidated interim statement of comprehensive income for the six months ended 30 June 2025

		Six months ended 30 June 2025 (not audited)		Six months ended 30 June 2024 (not audited)		Year ended 31 December 2024 (audited)
	Notes	£'000		£'000		£'000
(Loss)/profit for the period		(3,445)		8,024		16,518
Other comprehensive income/(expense)
Other comprehensive income/(expense) that may be reclassified to profit or loss in subsequent periods:
Net (loss)/gain on monetary items forming part of net investment in foreign operations and qualifying hedges of net investments in foreign operations		(723)		421		867
Income tax effect	8	181		(105)		(217)
Exchange differences on translation of foreign operations		3,300		(2,226)		(4,711)
Net other comprehensive income/(expense) that may be reclassified to profit or loss in subsequent periods		2,758		(1,910)		(4,061)
Other comprehensive expense not to be reclassified to profit or loss in subsequent periods:
Remeasurement losses on defined benefit plans		(63)		(907)		(925)
Income tax effect	8	16		200		232
Net other comprehensive expense not to be reclassified to profit or loss in subsequent periods		(47)		(707)		(693)
Other comprehensive income/(expense) for the period, net of tax		2,711		(2,617)		(4,754)
Total comprehensive income/(expense) for the period, net of tax attributable to owners of the parent		(734)		5,407		11,764