Business
Full Year Trading Update
Stelrad Group plc reported a full-year trading update for 2025, achieving adjusted operating profit growth of approximately 3% to £32.5 million, with an adjusted operating profit margin of 11.6%, up from 10.8% in 2024. Revenue was around £280 million, with a 4% decline in overall volumes year-on-year but an improvement in the second half. The company successfully managed margins and costs, leading to an eighth consecutive year of improved contribution per radiator. Net debt before lease liabilities reduced to £51.2 million from £59.7 million, and the leverage ratio improved to 1.16x. Stelrad also renewed its £100 million loan facility and incurred an exceptional expense of approximately £2.7 million due to restructuring its Danish business. Despite subdued market conditions, the company remains confident in its strategic positioning and outlook for 2026. Disclaimer*
About this update from Stelrad Group Plc
[{"type":"text","content":"\n\n30 January 2026\nStelrad Group plc\n(\"Stelrad\" or \"the Group\")\nFull Year Trading Update\n \nFurther growth in operating profit and contribution per radiator\n \nStelrad Group plc (\"Stelrad\" or \"the Group\", LSE: SRAD), a leading specialist manufacturer and distributor of steel panel and other designer radiators in the UK, Europe and Turkey, today issues a Trading Update for the twelve months ended 31 December 2025.\n \nTrading update\nThe Group delivered another year of adjusted operating profit growth, despite the ongoing suppression of volumes across Stelrad's core UK and European markets, as detailed in the Group's November 2025 Trading Update.\n \nRevenue for the year was c.£280m, reflecting a small improvement in volumes in the second half versus the first half. Although overall volumes declined by 4% year-on-year, there was encouraging progress in a number of key markets.\n \nThe Group also successfully implemented further proactive margin management and cost reduction activities across its manufacturing sites, resulting in a further improvement in our contribution per radiator KPI for the eighth consecutive year.\n \nThe improvement in contribution per radiator, benefitting from enhanced product mix, and strong fixed cost control, is expected to deliver year-on-year growth in the Group's adjusted operating profit of c.3% to c.£32.5m (FY24: £31.5m), in line with market expectations. This represents an adjusted operating profit margin of 11.6% (FY24: 10.8%).\n \nThrough strong cash management, the Group's net debt before lease liabilities reduced to £51.2m (2024: £59.7m) and the leverage ratio improved further during the year to 1.16x (2024: 1.37x). In December 2025, the Group's £100m loan facility was successfully renewed, which will reduce the Group's future borrowing costs.\n \nWe continue to assess opportunities to improve the Group's competitive position and operational efficiency. Prior to the year-end, and following the earlier restructuring of our Turkish operations, we restructured our Danish business which will further enhance future operational margins while incurring an exceptional expense of c.£2.7m in the second half of 2025.\n \nOutlook\nAlthough there remains a level of uncertainty around the timing of the wider market recovery, with RMI and new build ...