Stelrad Group PLC Reports 14% Profit Growth Despite Weaker Revenue Across Regions

2 min read | August 12, 2024 08:44 PM AEST | By Team Kalkine Media

Stelrad Group PLC Reports 14% Profit Growth Despite Weaker Revenue Across Regions — Image source: Gorodenkoff, Shutterstock

Profit and Revenue Performance

The Rotherham-based manufacturer and distributor of radiators reported a 14% increase in pretax profit, reaching £11.7 million for the half-year period ending June 30, compared to £10.3 million in the previous year. However, revenue fell by 8.9% to £143.1 million from £157.0 million. The cost of sales also decreased by 13% to £99.0 million, down from £113.7 million.

Dividend and Expense Updates

In response to its profit growth, Stelrad raised its interim dividend by 2.1%, setting it at 2.98 pence per share compared to 2.92 pence per share last year. Selling and distribution expenses decreased by 6.5% to £19.9 million from £21.3 million. Conversely, administrative expenses rose by 7.3% to £9.2 million from £8.5 million.

Regional Revenue Performance

The company reported weaker performance across all its markets. Revenue in the UK and Ireland fell by 1.5% to £69.1 million. In Europe, revenue declined by 13% to £66.8 million, attributed to lower levels of repair, maintenance, and improvement activity. Turkey and International revenues decreased by 31% to £7.2 million, reflecting a slump in economic activity in the region.

CEO’s Comments

Chief Executive Officer Trevor Harvey commented on the results, noting that despite ongoing macroeconomic challenges, Stelrad has delivered a strong performance in a subdued volume environment. He highlighted that inflation and high interest rates continue to impact both repair, maintenance, and new build markets. Harvey expressed confidence in the company’s position for sustained profitable growth as markets recover and emphasized the group’s readiness to benefit from underlying replacement demand and regulatory trends favoring energy-efficient heating systems.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.