REG - Stelrad Group PLC - AGM Trading Update

StelradAnnouncement

22/05/2024 07:00

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RNS Number : 3471P  Stelrad Group PLC  22 May 2024

22 May 2024

 

Stelrad Group plc

 

("Stelrad" or "the Group")

 

AGM Trading Update

 

Stelrad Group plc ("Stelrad" or "the Group", LSE: SRAD), a leading specialist
manufacturer and distributor of steel panel and design radiators in the UK,
Europe and Turkey, is holding its Annual General Meeting today and will make
the following comments regarding current trading, financial performance and
the outlook for the financial year.

 

The Group's financial performance year-to-date has been in line with
management expectations, and the full year outlook for the Group remains
unchanged from that outlined in its 2023 results presentation on 8 March 2024.

 

As anticipated, the Group's end markets remain challenging, with further year
on year volume declines across most geographies, but there are early signs of
recovery in some core territories. Despite this backdrop, the Group's
financial performance remains strong, supported by ongoing margin management
activities and the cost base management initiatives undertaken in the second
half of 2023.

 

The Group's ability to deliver on its full year expectations is underpinned by
the resilience

and flexibility of its business model, strong market positions and robust
strategy.

 

Trevor Harvey, Chief Executive Officer of Stelrad, commented:

 

"Stelrad has had an encouraging start to 2024 with management's experience,
aided by the flexibility of our business model, helping to successfully
navigate ongoing tough market conditions while underpinning our confidence in
delivering on our full year expectations.

 

Having further consolidated our place as market leader of both the steel panel
radiator category and the hydronic heat emitter market across Europe, the UK
and Turkey, Stelrad's initiative to expand its portfolio of higher margin,
higher heat output radiators, which have a long-term role to play in the
delivery of lower carbon domestic heating, has driven a 6% increase in Stelrad
UK's first quarter 2024 average heat output per radiator, relative to the
prior year.  This has had a positive impact on both average selling price per
radiator and margin percentage.

 

The Group remains well positioned for market recovery and the structural
tailwinds from decarbonisation.  We are confident in our ability to continue
growing market share and delivering long-term, increasing value for all our
stakeholders."

 

Notice of interim results

 

Stelrad intends to announce its interim results for the six months ending 30
June 2024 on 12 August 2024 and will provide a further update on its progress
at this time.

 

- ENDS -

 

Media enquiries

 

 Stelrad Group plc                         +44 (0)191 261 3301

 Trevor Harvey, Chief Executive Officer

 Annette Borén, Chief Financial Officer

 Powerscourt                               stelrad@powerscourt-group.com (mailto:stelrad@powerscourt-group.com)

 James White / Pete Lambie                 +44 (0)7855 432 699

 

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.  In the data reported by BRG Building Solutions for 2022,
Stelrad moved into a market leadership position, with 18.8% share by volume of
the combined UK, European and Turkish steel panel radiator market.  The Group
is now market leader in seven countries - the UK, Ireland, France, the
Netherlands, Belgium, Denmark and Greece, with a top 3 position in a further
nine territories.

 

Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2023 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/
(https://stelradplc.com/) .

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