Stelrad Group, which employs 300 people in South Yorkshire, performs 'broadly in line with expectations'

The group has provided a trading update for investors for the 12 months ended December 31 2022. Group revenue for the year ended December 31 2022 was around £312m, representing approximately 15 per cent growth on the prior year including the benefit of the acquisition of DL Radiators from August 2022.

Revenue growth was 3 per cent on a like-for-like basis, Stelrad said in its trading statement.

The board expects to deliver a record adjusted operating profit of around £34m.

The statement added: “The benefits of a successful focus on margin management and operational improvements has more than offset the impact of a decrease in volumes during the period, resulting in a strong increase in contribution per radiator.

“The integration of leading Italian heat emitter manufacturer, DL Radiators, continues to progress and complement Stelrad’s core markets and channels. A new production line is currently being commissioned in the recently acquired Italian facility with two further refurbished lines fully operational in our Turkish factory during 2022.”

Rising energy costs across Europe and the drive towards decarbonisation are both expected to underpin further, long-term demand for the group’s products, Stelrad said.

These trends, together with the flexibility of Stelrad’s business model, market-leading positions, and the strength and breadth of the group’s customer and supplier relationships, mean that the group enters 2023 with a high degree of resilience, the statement added.

Trevor Harvey, chief executive of Stelrad, commented: “Despite well-publicised macroeconomic headwinds in our end markets, the group performed broadly in line with its expectations in 2022, a testament to the resilience of our business model and market position, the robustness of our strategy and the dedication of our team.

"We have more than offset a decline in volumes with proactive margin management initiatives while the acquisition of DL Radiators offers considerable potential for the future by extending our range of heat emitters and providing access to new markets and channels.

Mr Harvey’s statement added: "We remain committed to our strategic objectives of growing market share, improving product mix, optimising routes to market, and positioning the business for decarbonisation, and, while we anticipate 2023 will be more challenging with further reductions in market size likely, we have proven that the strength of our business can meet these challenges and continue to deliver long-term value for all of our stakeholders.”