Thursday, October 7, 2021

News: Rotherham radiator manufacturer warming up for IPO


Stelrad, the UK's leading manufacturer of stylish modern radiators, is considering joining the stock exchange with an initial public offering (IPO).

The company was founded in 1936, manufacturing steel column radiators from a purpose built factory in Southall. Registered in Newcastle, it now operates from facilities in both Nuth (The Netherlands) and in Mexborough (UK). The Swinton site handles the UK radiators business, coordinating an advanced production and distribution operation that spans a 17 acre site which is the largest radiator storage facility in the UK.

Stelrad, whose revenue grew to £242.5m in the year ended 30 June 2021, is now considering applying for admission of the Ordinary Shares to the premium segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange.

Stelrad, which is the main supplier of the significant majority of hydronic radiators to four of the largest national housebuilders, said that the share issue would raise around £25m to repay certain existing indebtedness of the Group (both external and with existing shareholders).

Bob Ellis, chairman of Stelrad, said: "Stelrad is a leading specialist manufacturer and distributor of steel panel radiators with a track record dating back to the 1930s. Today, the Group benefits from an unrivalled combination of brand strength, highly efficient operating infrastructure and market access, trading across six core geographies of the UK, Benelux, Germany, France, Turkey and Poland.

"The European countries where the Group operates have been progressive in advancing the decarbonisation agenda through strong regulation and policies and Stelrad's products will play a key role in the longer-term transition away from traditional gas boilers with larger surface area radiators in particular being well suited to low temperature systems such as heat pumps.

"The Group's highly experienced management team have a wealth of industry experience and a long-standing commitment to the business having put in place a strategy that has seen the business deliver a resilient financial performance in recent years and, as a result, the Group is well placed to build on the strong momentum through both organic and inorganic growth opportunities."

Trevor Harvey, Chief Executive Officer of Stelrad, added: "Our successful growth strategy has been built upon a combination of standardised product design across all our manufacturing facilities, a key focus on specifiers across all of our end-markets and continued range innovation, alongside our multi-brand strategy that enables products and brands to be tailored to specific channels. As a result, we are the number one steel panel radiator business in a number of the markets where we operate.

"Hydronic systems dominate the heating market and steel panel radiators remain by far the most popular heat emitter with demand driven by both first-time installations and replacements. The overall market value is growing thanks to positive underlying market activity and continued adoption of premium panel radiators with the move towards decarbonisation presenting numerous opportunities and limited disruption to our longer-term growth plans.

"Our extensive product offering, strong relationships with all major distributors and specifiers plus this supportive market backdrop mean that we are confident of delivering further upside as part of our growth plan as we continue to play a leading role in keeping Europe warm."

The company said that it was "positioning for decarbonisation" with the scale and market position to adapt. Organic growth, extending already strong market positions in Europe and a focus on higher margin premium radiator segment are also part of the group's strategy.

The announcement to the stock exchange also discusses manufacturing and plans for under-utilised Western European lines to be "upgraded and redeployed at the Group's facility in Çorlu [Turkey] where the Group benefits from lower raw material and labour costs."

Bregal Capital, a leading European private equity firm, completed the management buy-out (MBO) of the Ideal Stelrad for approximately £230m in 2013.

Stelrad website

Images: Stelrad


Supported by:
More news...

  © Blogger template Newspaper III by 2008

Back to TOP