Highlights

  • Stelrad reported an 8.9% YoY revenue decline in H1FY24 due to weak demand
  • Operating profit in H1FY24 increased by 13.0% YoY, driven by cost management and improved product mix
  • H2FY24 sales benefited from new business gains, limiting the revenue decline to 6%
  • The company maintains confidence in long-term prospects, supported by higher demand and market leadership

Stelrad Group PLC (LSE:SRAD) is a specialist manufacturer and distributor of steel panel radiators. The company has a market cap of GBP 180.86 million.

H1FY24 Financial Performance

In the first half of the financial year 2024 (H1FY24), Stelrad Group reported a revenue of GBP 143.10 million, marking an 8.9% YoY decline compared to H1FY23. The decrease was largely driven by weak macroeconomic conditions, which impacted demand across key regions. Europe experienced a 12.6% drop in revenue due to reduced repair, maintenance, and improvement (RMI) activity, while Turkey and International markets saw a 30.6% decline due to weaker economic activity.

Despite the revenue drop, the company saw a 13.0% YoY increase in operating profit, rising to GBP 15.60 million from GBP 13.80 million in the previous year. This growth was driven by an improved product mix, efficient cost management, and margin optimisation. The contribution per radiator increased by 16%, surpassing GBP 20 million, helping to offset the lower sales volumes.

Recent Business Update

As per the company’s FY24 trading update dated 27 January 2025, the group achieved good performance, limiting revenue decline to around 6% at GBP 290 million. H2FY24 sales were bolstered by new business gains across multiple regions.

Adjusted operating profit is expected to reach GBP 31.5 million, surpassing expectations, with a 1.3 percentage point improvement in operating profit margin to 10.8%. Leverage remains stable at 1.4x EBITDA.

Company Outlook

Although market softness is expected to persist through H1FY25, the group remains confident in its long-term prospects. Higher replacement demand, product premiumization, and regulatory support for energy-efficient heating are key drivers. Additionally, its cost-efficient manufacturing and market leadership provide further support to its optimistic outlook.

Top 10 Shareholders

The top 10 shareholders of Stelrad Group hold approximately 92.05% of the total shares. Bregal General Partner Jersey Limited leads with around 49.55% of shares, followed by Trevor Harvey with an 8.99% shareholding.

Stock Information

SRAD's stock price has declined by approximately 3.72% over the past three months and around 6.88% in the last six months. The 52-week low stands at GBX 106.00, while the high is GBX 158.00. Presently, the stock is trading higher than the average of its 52-week high and low, with its closing price at GBX 142.00 as of 14 February 2025.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 14 February 2025. The reference data in this report has been partly sourced from EODHD/Others.