Radiator manufacturer and distributor Stelrad has posted a “resilient” performance, with revenue down 2.6% to £308.2 million, against a challenging backdrop in new build and RMI.

UK & Ireland region revenue was broadly flat, down 0.5% (0.6% like-for-like), while Europe dipped 0.4% (21.2% like-for-like), with Turkey & International region revenue falling 25.8% (30.5% like-for-like) driven primarily by volume decline in China.

Stelrad reported its volume mix of higher added-value premium steel panel radiators was maintained

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Operating profit rose to £26.7 million, an increase of £4.1 million, whereas adjusted operating profit of £29.3 million was adversely impacted by a 5.2% volume decline and £3.7 million increase in depreciation and writing off assets.

This was partially offset by proactive margin management and cost reduction initiatives.

Despite the headwinds impacting volumes in new build and RMI during 2023, the group has continued into 2024 trading in line with management’s expectations.

Although Stelrad expect market headwinds to continue throughout 2024, the manufacturer reports its outlook for the current financial year remains unchanged.

Iin the longer term, it states the company will benefit from strong underlying replacement demand, combined with regulation for decarbonised energy efficient heating.

CEO of Stelrad Trevor Harvey said: “Our performance in 2023 is testament to the resilience and flexibility of our business model, the strength of our market positioning and the robustness of our strategy that continues to see us focus on our four key strategic objectives of growing market share, improving product mix, optimising routes to market and positioning effectively for decarbonisation.

“After many years as challenger, Stelrad has now gained market leadership of both the steel panel radiator category and the hydronic heat emitter market in total, across the combined market of Europe, the UK and Turkey, taking market share from our competitors during a prolonged period of wider market uncertainty.  

“Although we expect these macroeconomic headwinds to continue during 2024, management’s considerable experience of managing through numerous other challenging market cycles will enable us to navigate current market conditions to deliver another robust financial performance.

“In combination with our focused strategy, this positions Stelrad well for a sustained period of profitable growth when markets recover, with the Group well placed to benefit from strong underlying replacement demand across Europe and the long-term regulatory tailwinds for decarbonised energy efficient heating systems.”