Friday, May 20, 2022

News: Stelrad continues to trade well


Stelrad, the UK's leading manufacturer of stylish modern radiators, continues to trade well following a pivotal year which saw it join the London Stock Exchange.

Registered in Newcastle, it now operates from facilities in both Nuth, in The Netherlands, and in Mexborough. The Rotherham 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.

Despite the impact of the Covid-19 pandemic across the world, Stelrad's impressive progress continued in 2021 when it achieved a record financial performance.

Revenue of £272.3m was reported for the 12 months ended December 31 2021, up from £196.6m in 2020 whilst adjusted operating profit rose by 112.3% to £33.2m from the 2020 figure of £15.6m.

Helping to heat homes sustainably, sales volume increased by 20% versus 2020 and was 9% higher than in 2019, the last pre-pandemic year. Bosses said that this performance was aided by the supportive backdrop of the continued focus on decarbonisation and the move towards higher added value premium steel panel radiators.

The year also saw the completion of a six-year programme of upgrading our three main facilities, which has seen a total of £25m invested in best-in class manufacturing capabilities. This included an £175k upgrade project to install 16 modern, fully modulating gas burners on the electrocoat ovens in the manufacturing site in Mexborough to help reduce the reliance on gas.

Stelrad shares began trading on the Main Market of the London Stock Exchange in November 2021. The IPO valued the business at €320m (£274m).

Recommended reading: How Rotherham Business Owners Can Be Better Bosses

Since the end of the financial year, the group has performed slightly ahead of management expectations and the outlook for the group remains unchanged. Some reduction in overall volumes have been more than offset by increased revenues and improving margins.

Trevor Harvey, Chief Executive of Stelrad, said: "The Group continues to trade well thanks to our brand strength and well-established relationships with major distributors and specifiers. As energy prices continue to place pressure on household incomes, our products remain central to how consumers across Europe affordably heat homes and reduce energy consumption while governments continue to debate how best to decarbonise homes and meet long-term net zero carbon commitments. We are confident in our strategy and ability to continue growing our market share both organically and through M&A as we address this important trend."

Stelrad website

Images: Stelrad


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