Stelrad Group has announced its audited financial results for the year ended 31 December 2024.
The company reported that the operating profit for the year was up 17.6% to £31.4m, an increase of £4.7m from £26.7m in 2023. According to Stelrad, this was due to continued cost base optimisation initiatives, favourable materials pricing, strong product mix and the impact of exceptional items in 2023. Adjusted operating profit for the year up 7.6% to £31.5m, an increase of £2.2m from £29.3m in 2023.
The report found that contribution per radiator increased by 11.4% to £20.15. This is the first time the Group has achieved a figure in excess of £20, it noted. Stelrad stated that this was driven by margin control, an increased volume of higher output radiators in the UK market and an increase in overall premium panel sales mix to 5.7%.
There was a revenue decline of 5.7% to £290.6m as a result of ongoing challenges in RMI and new build markets, it cited, with high interest rates and inflation supressing activity.
Revenue was down 1.5% in the UK and Ireland, which Stelrad said was a creditable result despite wider market headwinds. It was also down 6.8% in Europe due to Euro devaluation and continued sales volume declines. In Turkey and International, revenue was down 27.7% to £14.2m, driven by lower sales volumes.
The report revealed that return on capital employed grew by 1.6 ppts to 27.1% boosted by strong operating profit. On Time In Full (OTIF) had a delivery of 98% in the UK & Ireland.
Investment in working capital to enhance service levels meant that free cash flow decreased by £8.2m to £9.6m from £17.8m in 2023, it found. Leverage at 31 December 2024 was 1.37x based on net debt before lease liabilities.
Recommended final dividend was up by 2% to 4.81 pence per share to be paid on 27 May 2025.
Trevor Harvey, chief executive officer, said: “2024 largely saw a continuation of the challenging conditions that have characterised the wider marketplace in recent years. However, as a result of our rigorous focus on operational excellence, the flexibility of our business model and the strength of our market position, we have still delivered a strong financial performance across the business, despite ongoing declines in revenues and volume.
“Our focus on proactive margin management initiatives has resulted in our contribution per radiator exceeding £20 for the first time, while an increase in the penetration of premium panel products into the UK & Ireland underpins our confidence in the role that premiumisation will continue to play in driving long term growth.
“We also continue to position our business effectively for decarbonisation, promoting high output conventional radiators, developing hybrid products for low temperature systems and introducing electric ranges into our core markets.
“While we are not expecting the wider market backdrop to improve significantly during the first half of 2025, we are encouraged by our continued volume recovery in some of the Group’s core European territories and remain confident that, regardless of wider macro conditions, Stelrad is able to outperform its peers and deliver continued growth for our stakeholders.”