Slide 1: Well positioned for sustainable growth
Well positioned for sustainable growth Stelrad Group plc Results for the year ended 31 December 2024
Slide 2: Agenda
RESULTS FOR THE YEAR Agenda • Overview • Financial review • Business review • Summary and outlook • Q&A Trevor Harvey Leigh Wilcox Chief Executive Officer Chief Financial Officer Stelrad Group plc 2
Slide 3: Overview
Overview Trevor Harvey Chief Executive Officer
Slide 4: Continued strong performance through operational excellence, despite a challenging market backdrop
2024 RESULTS SUMMARY Continued strong performance through operational excellence, despite a challenging market backdrop • Adjusted operating profit up 7.6% to £31.5 million • Contribution per radiator up for seventh consecutive year to £20.15, driven by improved mix, in addition to cost and price ma
Slide 5: Financial review
Financial review Leigh Wilcox Chief Financial Officer
Slide 6: FY24 financial performance snapshot
FINANCIAL REVIEW HIGHLIGHTS FY24 financial performance snapshot Strong adjusted operating profit despite revenue decline Adjusted Adjusted Adjusted ROCE % Dividend operating Leverage Revenue operating operating cash (before lease (LTM) profit profit % conversion liabilities) £290.6m £31.5m 10.8% 27.
Slide 7: Strong performance in challenging market conditions
FINANCIAL REVIEW HIGHLIGHTS Strong performance in challenging market conditions Revenue Adjusted operating profit Adjusted EPS Dividends per share £290.6m £31.5m 13.05p 7.79p 2024 290.6 2024 31.5 2024 13.05 2024 7.79 2023 308.2 2023 29.3 2023 13.62 2023 7.64 2022 316.3 2022 34.0 2022 19.11 2022 7.64
Slide 8: Further contribution per radiator improvement more than offsets volume decline
FINANCIAL REVIEW HIGHLIGHTS Further contribution per radiator improvement more than offsets volume decline Radiator volumes sold Premium panel radiator volumes sold Contribution per radiator 4,823k units 276k units £20.15 2024 4,823 2024 276 2024 20.15 2023 5,121 2023 289 2023 18.09 2022 5,404 2022
Slide 9: Revenues fall due to volume decline
REVENUE Revenues fall due to volume decline 2024 2024 2023 Movement Movement Revenue by geographical market £m % of total £m £m % UK & Ireland 137.4 47.3 139.4 (2.0) (1.5) Europe 139.0 47.8 149.1 (10.1) (6.8) Turkey & International 14.2 4.9 19.7 (5.5) (27.7) Total 290.6 100.0 308.2 (17.6) (5.7) UK &
Slide 10: Adjusted operating profit up 7.6% to £31.5m despite volume decline
ADJUSTED OPERATING PROFIT Adjusted operating profit up 7.6% to £31.5m despite volume decline £31.5m £29.3m £0.1m £1.9m £2.8m £5.4m £3.0m 2023 Volume Mix Cost initiatives Price / other Dep’tion 2024 • Decrease in sales volumes of 298k units • Mix improvement driven by UK & Ireland • Benefits of Q4 20
Slide 11: Strong UK & Ireland operating profit growth offsetting decline in international markets
ADJUSTED OPERATING PROFIT Strong UK & Ireland operating profit growth offsetting decline in international markets 2024 2023 Movement Movement Adjusted operating profit by geographical market £m £m £m % UK & Ireland 29.6 24.5 5.1 20.7 Europe 7.9 9.1 (1.2) (12.4) Turkey & International 1.0 1.3 (0.3) (
Slide 12: Investment in strategic working capital, leverage reduced
CASH FLOW Investment in strategic working capital, leverage reduced 2024 2023 Movement £m £m £m EBITDA 43.5 41.2 2.3 Exceptional items — (2.5) 2.5 Gain on disposal of property, plant and equipment (0.1) — (0.1) Share-based payments 0.4 0.5 (0.1) Working capital (10.1) (0.6) (9.5) Working capital – e
Slide 13: Balance sheet, taxation, dividends and ROCE
BALANCE SHEET, TAXATION, DIVIDENDS AND ROCE Taxation Dividends • Effective tax rate 29.4% (2023: 19.6%) • Total dividends of 7.79 pence, 2.0% increase on 2023 • Tax charge increased year on year due to one off credit in 2023 • Confidence in future prospects and cash generation, despite short term he
Slide 14: Technical guidance
TECHNICAL GUIDANCE Technical guidance • Market environment expected to remain subdued for at least the first half of 2025 • Key input prices, including steel, are expected to remain stable in 2025 • Capital expenditure to rise slightly with a periodic investment in the Group’s IT infrastructure • Co
Slide 15: Business review
Business review Trevor Harvey Chief Executive Officer
Slide 16: Stelrad is Europe's leading radiator manufacturer
BUSINESS REVIEW Stelrad is Europe’s leading radiator manufacturer Our core purpose is helping to heat homes sustainably #1 1,400 in hydronic people heat emitters • 11.8% overall market share • 20.2% steel panel market share • Stelrad is Europe’s #1 brand 500+ 40+ customers countries 5 market leading
Slide 17: The Group is well positioned for profitable, sustainable growth
BUSINESS REVIEW The Group is well positioned for profitable, sustainable growth… Attractive market Key structural Sustainable competitive Clear, consistent Key medium-term opportunity growth drivers advantages strategic objectives targets Market share improvement 321m homes in Europe Growing market
Slide 18: A clear strategy to capitalise on long-term structural opportunities
BUSINESS REVIEW …with a clear strategy to capitalise on long- term structural opportunities Growth driver Strategic focus Key initiatives 1 Leverage Stelrad trade strengths Leverage Stelrad’s strong brand positions Support installers and merchant staff in upselling Increasing Installer marketi
Slide 19: Premium steel panel mix reached a record level of 6.3% in 2024
INCREASING PREMIUMISATION Premium steel panel mix of total steel panel volume reached a record level of 6.3% in 2024 • Between 2015 and 2024, premium steel panel volume has grown at 3.4% CAGR • In the underdeveloped UK market, premium steel panel mix increased by 0.2 ppts, from 2.9% in 2023 to 3.1%
Slide 20: In the UK in 2024, sales of higher output radiator types increased by 66%
THE DRIVE FOR DECARBONISATION In the UK in 2024, sales of higher output radiator types increased by 66% • Following changes to UK building regulations, Stelrad has worked closely with specifiers to find cost-effective, high-performance solutions for low temperature systems • As a result, volume of h
Slide 21: With its Fit for the Future strategy, the Group is also making good ESG progress
SUSTAINABILITY With its Fit for the Future strategy, the Group is also making good ESG progress In 2024, Stelrad: • Continued to drive safety standards, setting a new benchmark for Lost Time Incidents, with a Lost Time Frequency rate of 4.75, a reduction of 45% versus 2023 • Published environmental
Slide 22: Summary and outlook
Summary and outlook Trevor Harvey Chief Executive Officer
Slide 23: Continued strong performance in 2024, well positioned for sustainable future growth
SUMMARY AND OUTLOOK Continued strong performance in 2024, well positioned for sustainable future growth Robust performance despite challenging market conditions • Strong operating margin performance driven by operational excellence • Increased contribution per radiator for the seventh successive yea
Slide 24: Questions
Questions
Slide 25: Appendices
NUVUVUN \ @ Appendices
Slide 26: Capital allocation priorities
CAPITAL ALLOCATION Capital allocation priorities Strategic execution Strong free cash flow growth Capital allocation Investment for Shareholders Leverage Selective organic growth returns control acquisitions Continued Via a progressive Targeting a leverage Based on our investment in: dividend policy
Slide 27: Consolidated income statement summary
CONSOLIDATED INCOME STATEMENT SUMMARY 2024 2023 Movement Movement £m £m £m % Revenue 290.6 308.2 (17.6) (5.7) EBITDA(1) 43.5 41.2 2.3 5.6 Adjusted operating profit(1) 31.5 29.3 2.2 7.6 Exceptional items — (2.5) 2.5 100.0 Amortisation of customer relationships (0.1) (0.1) — 2.8 Operating profit 31.4
Slide 28: Consolidated balance sheet summary
CONSOLIDATED BALANCE SHEET SUMMARY 2024 2023 2024 2023 £m £m £m £m Non-current assets Non-current liabilities Property, plant and equipment 79.2 87.2 Interest-bearing loans and borrowings 83.3 88.2 Intangible assets 4.6 5.3 Deferred tax liabilities 0.2 0.2 Trade and other receivables 0.3 0.3 Provisi
Slide 29: Consolidated statement of cash flow summary
CONSOLIDATED STATEMENT OF CASH FLOW SUMMARY 2024 2023 Movement £m £m £m EBITDA(1) 43.5 41.2 2.3 Exceptional items — (2.5) 2.5 Gain on disposal of property, plant and equipment (0.1) — (0.1) Share-based payment charge 0.4 0.5 (0.1) Working capital (10.1) (0.6) (9.5) Working capital – exceptional item
Slide 30: Disclaimer
DISCLAIMER This presentation is not intended to, and does not constitute or form part of, any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Stelrad Group plc or any other invitation or inducement to en