Heating manufacturer Stelrad has delivered positive financial results following its IPO in November 2021, reflecting “robust” trading, management of steel price fluctuations and penetration into European markets.
Its revenue for 2020 was £196.6 million (year to December) which has increased to £275.2million in its estimated full year results for 2021.
Adjusted EBIT for December 2022 was £15.6million, which is expected to be £31.3million in 2021.
Trading in its largest market, the UK, which is around 45% of group revenue) remained broadly unchanged, which highlights strong momentum, while its European markets have strengthened.
It has been driven by the group sales into replacement, residential new build, and commercial sectors.
In addition, Stelrad reports customer focus on decarbonisation has driven interest in alternative heating systems, such as lower temperature heating and the group’s larger radiators.
According to the group, the shift in customer focus should underpin good, long-term growth.
Stelrad also reports management has managed external headwinds driven by the pandemic in addition to steel price and currency fluctuations and will continue to optimise cost and price.
The company has “modestly” adjusted its estimated full year outcome for 2021 to be “slightly ahead of its previous view”, with a 2.7% increase in earnings per share.
It plans to review its assumptions at the release of its full year results for 2021, due on March 14, 2022.