Stelrad Group PLC on Monday raised its dividend and reported double-digit profit growth despite weaker revenue across all regions in which it operates during the first half.

The Rotherham, England-based manufacturer and distributor of radiators said pretax profit rose 14% to £11.7 million in the first half that ended June 30 from £10.3 million the previous year.

Revenue declined 8.9% to £143.1 million from £157.0 million, as cost of sales reduced 13% to £99.0 million from £113.7 million.

Stelrad raised its interim dividend 2.1% to 2.98 pence per share from 2.92p last year.

Selling & distribution expenses fell 6.5% to £19.9 million from £21.3 million, whereas administrative expenses grew 7.3% to £9.2 million from £8.5 million.

The company reported weaker performance across all markets as revenue in UK & Ireland dipped 1.5% to £69.1 million.

Elsewhere, Europe revenue was down 13% to £66.8 million due to depressed levels of repair, maintenance and improvement activity. Meanwhile, Turkey & International revenue declined 31% to £7.2 million as economic activity slumped in the region.

Chief Executive Officer Trevor Harvey said: ‘Despite continued macroeconomic challenges across Stelrad’s geographies, the group has delivered a strong performance in a volume environment that remains subdued, with inflation and high interest rates continuing to suppress both RMI and new build markets.

‘Stelrad remains well positioned for a sustained period of profitable growth as markets recover across our core geographies, 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.’

Stelrad shares were down 1.8% to 136.55 pence each in London on Monday morning.

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