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Stelrad Group PLC on Monday said economic uncertainty has weighed on full-year sales while profit is expected to be lower than market consensus. In response, shares in the Newcastle upon Tyne, England-based producer of radiators were down 14% at 146.50 pence each in London on Monday. In a trading statement for the 10 months ending October, Stelrad said the backdrop of ongoing economic uncertainty has continued to suppress volumes, resulting in lower revenue versus the £290.6 million reported in 2024. More positively, margin initiatives and cost reductions are expected to result in another increase in contribution per radiator relative to prior year. As a result, the firm expects 2025 adjusted operating profit between £32 million to £33 million, ahead of £31.5 million in 2024, with positive operating margin growth year-on-year. However, Davy Research said this was below current consensus for £33.5 million and its own £34 million forecast. ‘Whilst the continued delay in end-market recovery remains frustrating, Stelrad’s flexible, low-cost manufacturing footprint....means that the group remains well-positioned for the eventual recovery in our end markets,’ said Chief Executive Trevor Harvey. In particular, the firm said the relaunched Stelrad.com website has gained strong traction with customers with ‘encouraging levels of site traffic and high levels of engagement.’ Stelrad said debt leverage ratio is expected to improve further in 2025 from 1.37 times in 2024, supported by strong cash management. In addition, the refinancing of the group’s loan facility, which is expected to complete before the end of the year, will reduce future borrowing costs. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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