North East radiator manufacturer Stelrad says its products “remain central” to how people across Europe will cope with rising energy costs.
The Newcastle-based firm – which has 1,300 employees across its main manufacturing base in Mexborough, South Yorkshire, and bases in Holland and Turkey – issued a trading update ahead of its AGM, highlighting its current trading, financial performance, and outlook for the financial year.
Year to date, the group said its has performed slightly ahead of management expectations, with the outlook for the group remaining unchanged.
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Ahead of the AGM, chief executive Trevor Harvey said: “The group continues to trade well thanks to our brand strength and well-established relationships with major distributors and specifiers.
“As energy prices continue to place pressure on household incomes, our products remain central to how consumers across Europe affordably heat homes and reduce energy consumption while governments continue to debate how best to decarbonise homes and meet long-term net zero carbon commitments. We are confident in our strategy and ability to continue growing our market share both organically and through M&A as we address this important trend.”
It said that, while overall volumes are lower year-on-year against very strong comparators, the softening of sales has been more than offset by improved margins, enhanced by cost management actions and an improved mix of premium steel panel radiators.
In the stock update to shareholders, the company said: “Stelrad’s market leading products and brands ensure that the group remains very well positioned across all key geographies. The group continues to manage inflationary cost increases and avoid any adverse impact from supply chain dynamics through its well established supplier relationships.
“The leading market position, favourable regulatory tailwinds and wider macro trends in relation to reducing home heating costs and carbon emissions underpin Stelrad’s outlook for the current financial year and management are confident of delivering long-term value for all our stakeholders.”
