Stelrad Group PLC on Friday said it had increased profit despite enduring an ‘extremely challenging’ trading environment in 2023, and expects to ride this momentum into 2024 and beyond.

In 2023, the Rotherham, England-based radiator manufacturer delivered £19.2 million in pretax profit, an 88% increase from £10.2 million in 2022.

Revenue was down 8.1% to £308.2 million from £316.3 million a year prior.

While revenue in the UK, Ireland and Europe was down marginally, revenue for the Turkey & International sector dropped 26%. Stelrad said this fall was the result of ‘significantly lower’ sales volumes to China.

Earnings before interest, tax, depreciation and amortisation fell 2.4% to £41.2 million from £42.2 million.

Basic earnings per share more than tripled to 12.11 pence from 3.38 pence, in line with the increase in Stelrad’s profit to £15.4 million from £4.3 million.

Stelrad has recommended a final dividend of 4.72 pence per share, bringing 2023’s total payout to 7.64 pence, both unchanged from 2022.

Stelrad also completed its acquisition of Radiators SpA during the year, a Moimacco, Italy-based company specialising in electrical radiators, expanding its portfolio of low- and zero-carbon heating systems.

Market conditions had proven ‘extremely challenging’ in 2023, the company noted, with a combination of high interest rates and high inflation impacting demand for both housebuilding and renovation, and spurring continued distributor focus on inventory destocking.

Stelrad said it has maintained the momentum from this ‘robust performance’ into 2024, with trading during the start of the financial year in line with its expectations.

While the company expects the macroeconomic headwinds impacting sales volumes to continue, in the longer term, Stelrad said it will benefit from the wider move to ‘decarbonised energy efficient heating systems’ as well as the leading market position it has developed over the past few years.

Chief Executive Officer Trevor Harvey said: ‘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.’

Shares in Stelrad were up 3.1% at 112.90 pence each in London on Friday morning.

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