Interim Results
Summary by AI BETAClose X
Stelrad Group plc
("Stelrad" or "the Group" or "the Company")
Interim results for the six months ended 30 June 2026
Operational delivery, profit growth and margin expansion with outlook for the full year unchanged
Stelrad Group, a leading specialist manufacturer and distributor of steel panel and other designer radiators in the UK, Europe and Turkey, today announces its unaudited interim results for the six months ended 30 June 2026.
Results summary
|
|
Six months ended 30 June 2026 |
|
Six months ended 30 June 2025 |
|
Movement % |
|
|
|
|
|
|
|
|
Revenue, £m |
124.0 |
|
136.5 |
|
(9.1) |
|
|
|
|
|
|
|
|
Operating profit, £m |
15.7 |
|
3.8 |
|
307.6 |
|
Operating profit margin, % |
12.6 |
|
2.8 |
|
9.8 ppts |
|
Profit/(loss) for the period, £m |
8.7 |
|
(3.4) |
|
351.3 |
|
Earnings/(loss) per share - basic, pence |
6.80 |
|
(2.71) |
|
351.3 |
|
|
|
|
|
|
|
|
Exceptional items, £m |
(1.0) |
|
(12.0) |
|
91.4 |
|
|
|
|
|
|
|
|
Adjusted operating profit, £m (1) |
16.7 |
|
15.9 |
|
4.9 |
|
Adjusted operating profit margin, % (1) |
13.5 |
|
11.7 |
|
1.8 ppts |
|
Adjusted profit for the period, £m (1) |
9.5 |
|
8.2 |
|
16.0 |
|
Adjusted earnings per share - basic, pence (1) |
7.43 |
|
6.41 |
|
16.0 |
|
|
|
|
|
|
|
|
Free cash flow, £m (1) |
(0.2) |
|
1.8 |
|
(112.3) |
|
Return on capital employed, % |
29.0 |
|
26.9 |
|
2.1 ppts |
|
Net debt before lease liabilities, £m |
57.5 |
|
64.8 |
|
(11.2) |
|
Dividend per share, pence |
3.19 |
|
3.04 |
|
5 |
|
|
|
|
|
|
|
(1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement.
Operational excellence and market mix offsetting challenging market conditions
· Adjusted operating profit rose to £16.7 million, an increase of 4.9%, benefitting from the successful delivery of our commercial and operational initiatives, which have further enhanced profitability and offset market weakness. Adjusted operating profit margin increased 1.8 ppts to 13.5%.
· Statutory operating profit was £15.7 million, after exceptional items of £1.0 million (2025: £3.8 million, after £12.0 million non-cash exceptional items).
· Adjusted earnings per share rose by 16% supported by adjusted operating profit growth and reduced interest costs.
· Contribution per radiator increased to £24.32 (2025: £20.33), benefitting from operational control initiatives, the one-off exit from a loss-making contract at the end of 2025 and market-driven reduced volumes in some lower margin territories and market sectors.
· Contribution per radiator is expected to move towards our sustainable medium-term target of >£21, reflecting our intention to grow volume in select territories, leveraged by our cost leadership.
· Revenue declined 9.1% to £124.0 million due to a 14.6% decline in sales volumes during the period, including the exit from a loss-making contract, offset in part by selling price benefits.
o UK & Ireland: revenue declined 4.0% due to a 6.6% volume reduction, reflecting the continued weakness in new build housing and RMI, offset in part by selling price increases driven by steel price increases.
o Europe: revenue declined 7.4% as a result of reduced market volumes and the exit from a loss-making contract (c. £5.0 million revenue impact), with beneficial market mix offsetting adverse market demand in some geographies.
o Turkey & International: revenue declined 60.6%, to £3.4 million, the result of a commercial decision to reduce sales to the Turkish market in the period.
· Free cash outflow of £0.2m (2025: free cash inflow of £1.8m), because of a typical seasonal working capital high point. This is due to investments in working capital to enhance service levels across our end markets, alongside higher tax paid, partially offset by lower interest payments.
· Return on capital employed increased by 2.1 ppts to 29.0% (2025: 26.9%).
· Leverage at 30 June 2026 was 1.29x (31 December 2025: 1.16x; 30 June 2025: 1.48x), based on net debt before lease liabilities, with further de-leveraging expected in the second half.
· Interim dividend increased by 5% to 3.19 pence per share (2025 interim dividend: 3.04 pence per share), to be paid on 23 October 2026, reflecting the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation.
Well positioned for growth
· The commercial and operational initiatives undertaken in 2025 have further optimised our cost base and driven progress in 2026 despite challenging market conditions.
· On Time In Full (OTIF) delivery was 98.5% (2025: 99%) in the UK & Ireland, a key strength of our business and a point of differentiation versus our competitors.
· Stelrad is the clear leader of the steel panel radiator market, with a combined 2025 share of 24.0%(1) (2024: 24.4%), retaining a 3.9 ppts lead over our nearest competitors. Minor share reduction in 2025 was driven by the specific market mix across the countries we serve.
· The financial strength of the business and its geographically diversified end markets sees Stelrad well positioned and competitively placed to target market share gains in selected markets.
Outlook
· Proactive margin management and cost discipline has positioned the Group well to continue to deliver in the current environment, though we remain mindful of the continuation of cost inflation and ongoing weakness in our end markets.
· Trading in the second half to date has been in line with our expectations and the outlook for the full year remains unchanged.
· Whilst there remains a level of uncertainty around the timing of a wider market recovery, we remain confident in Stelrad's ability to capitalise on the attractiveness of our geographically diversified end markets, underpinned by long-term structural growth drivers, and the opportunities that a market recovery present for a stronger, more agile Stelrad.
Commenting on the Group's performance, Trevor Harvey, Chief Executive Officer, said:
"During the period, we delivered a strong financial performance against a backdrop of ongoing economic uncertainty suppressing volumes in the Group's key markets. Crucially, despite this environment, we have maintained our market leadership position and continued to optimise our cost base.
"The Board remains confident in its strategic pillars and in driving continued shareholder value. Our operational excellence initiatives, underpinned by our competitive advantages and market positioning, mean that Stelrad remains well-placed to target market share gains across the geographies in which we operate."
For further information:
|
Stelrad Group plc Trevor Harvey, Chief Executive Officer Leigh Wilcox, Chief Financial Officer
|
+44 (0) 191 261 3301 |
|
Investec (Joint Corporate Broker) Ben Griffiths / Lydia Zychowska
|
+44 (0) 207 597 4000
|
|
Singer Capital Markets (Joint Corporate Broker) Graham Hertrich / Sara Hale / James Todd
|
+44 (0) 20 7496 3000 |
|
Sodali & Co James White / Pete Lambie |
+44 (0)7855 432699 |
Notes to Editors
Stelrad Group plc is Europe's leading specialist radiator manufacturer, selling an extensive range of hydronic, hybrid, dual fuel and electrical heat emitters to more than 500 customers in over 40 countries. These include standard, premium and low surface temperature (LST) steel panel radiators, towel warmers, decorative steel tubular, steel multicolumn and aluminium radiators.
The Group has five main brands: Stelrad, Henrad, Termo Teknik, DL Radiators and Hudevad. In the 2025 data for 22 European countries reported by BRG Building Solutions in May 2026 (excluding Russia), Stelrad consolidated its market leadership position with 24.0% share overall. The Group is #1 in seven countries including UK, France, Belgium, Netherlands and Denmark and holds Top 3 position in seven more.
Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2025 employed 1,300 people, with manufacturing and distribution facilities in Çorlu (Turkey), Mexborough (UK), Moimacco (Italy) and Nuth (Netherlands), with a further commercial and distribution operation in Krakow (Poland).
The Group's origins date back to the 1930s and Stelrad enjoys long established commercial relationships with many of its customers, having served each of its top five current customers for over twenty years.
Further information can be found at: https://stelradplc.com/.
(1) BRG Building Solutions May 2026: 22 European countries for which 2025 data is available (excluding Russia), representing 97% of the 2024 market reported.
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.
CHIEF EXECUTIVE OFFICER'S REVIEW
Continued strategic progress in a suppressed volume environment
Over the first half, Stelrad continued to perform strongly during a period that saw a continuation of the market dynamics that we have seen over recent years, with further declines in market volume across our core territories.
This performance is testament to the strategic and operational progress we have made over recent years, further embedding commercial excellence throughout the organisation and enhancing the efficiency of our operations.
Crucially, we have worked to ensure that this activity protects and enhances our competitive advantages. While continuously improving and optimising our operations, the Group is focused on ensuring that we are well positioned to capture the benefits of a market recovery, maintaining our cost advantage and leading customer proposition, both of which underpin our sustained leadership position across diversified end markets.
This market leadership provides specific market share opportunities, positions Stelrad as a key beneficiary of a market recovery and allows us to drive longer-term structural trends that will deliver above-market growth for Stelrad. This includes both premiumisation, with the continued adoption of designer radiators, and decarbonisation, with a growing market for larger, higher heat output conventional radiators, hybrid radiator products and electric radiator ranges.
During the period, the Group saw further volume declines of 14.6%. This primarily reflects weakness in some of our core territories including the UK & Ireland (-6.6%), reflecting the continued weakness in new build housing and RMI, Europe (-14.4%) and our smaller segment of Turkey & International (-61.8%). Within Europe, there were notable volume declines in Germany, reflecting the Group's focus on commercial excellence and the decision to exit a loss-making contract, and France, where there has been a notable decline in higher-volume, lower margin segments of the market. The pro-active decision to exit the loss-making German contract has underpinned operating margin improvements in our European segment. For Turkey & International, the reduction is the result of a commercial decision to reduce sales to the Turkish market during the period.
Reflecting our continued market leadership and ability to drive mix improvement, we successfully offset some of the impact on revenue caused by the subdued volume environment, with the Group's revenue declining by 9.1% to £124.0 million (2025: £136.5 million).
Reflecting the beneficial mix from both volume declines and our commercial excellence, in combination with the cost optimisation and operational excellence initiatives that Stelrad has delivered over the last few years, we continued to grow our adjusted operating profit margin, which increased 1.8ppts to 13.5%, in line with our medium term target, and delivered an adjusted operating profit increase of 4.9% during the period to £16.7 million (2025: £15.9 million).
Continued strategic progress
Against this backdrop, Stelrad has clear, consistent strategic objectives of:
1. Growing our market share
2. Improving our product mix
3. Optimising our routes to market
4. Positioning effectively for decarbonisation
These objectives are interconnected and in combination with our competitive advantages, provide a platform for the Group's future sustainable growth. Progress against each must be carefully balanced to ensure we maintain our competitive cost advantage, which is underpinned by the operating leverage within our manufacturing sites and positions us to capitalise on specific market share opportunities and the recovery in our end markets as it materialises.
Stelrad is the clear leader of the steel panel radiator market, with a combined 2025 share of 24.0%(1) (2024: 24.4%), retaining a 3.9 ppts lead over our nearest competitors. Minor share reduction in 2025 was driven by the specific market mix across the countries we serve. Pleasingly, we have further consolidated our leading market positions across our ten core markets.
|
|
2025 |
||
|
Market |
Market volume '000 |
Stelrad share |
Stelrad position |
|
UK |
4,500 |
51.3% |
#1 |
|
Turkey |
4,200 |
8.3% |
#4 |
|
Germany |
1,940 |
13.7% |
#3 |
|
France |
1,262 |
35.9% |
#1 |
|
Poland |
1,191 |
10.2% |
#2 |
|
Belgium |
390 |
44.1% |
#1 |
|
Sweden |
380 |
15.9% |
#2 |
|
Netherlands |
344 |
49.6% |
#1 |
|
Ireland |
250 |
34.9% |
#2 |
|
Denmark |
203 |
51.4% |
#1 |
|
Core 10 |
14,660 |
27.9% |
#1 |
The strength of our leading market position is facilitated by our leading customer service and product availability, which we have continued to maintain, with an On Time In Full delivery rate of 98.5% in the UK.
We have continued to protect and improve our product mix throughout the current market downturn, reflecting the progress we have made in our premiumisation and decarbonisation strategic initiatives, despite the headwinds created by the current economic environment. The penetration of premium panel volumes remained solid during the period, with a further increase in total proportion of premium panel sales increasing by 0.1% to 6.2%.
The embedding of commercial excellence across our operations and the exit from a loss-making European contract have improved our margins further, with a notable impact in this half.
This, combined with optimisation programmes across the Group's operations, most recently in Turkey, has allowed us to offset the impact of the volume downturn on the Group's operating profit margin, with our contribution per radiator KPI reaching £24 for this half. We expect contribution per radiator to move towards our sustainable medium-term target of >£21, reflecting our intention to grow volumes in select territories, leveraged by our cost leadership.
Interim dividend
The Board has declared an interim dividend of 3.19 pence per share, an increase of 5%. The interim dividend will be paid on 23 October 2026 to shareholders on the register on 9 October 2026. This increase reflects the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation.
Outlook
Proactive margin management and cost discipline has positioned the Group well to continue to deliver in the current environment, though we remain mindful of the continuation of cost inflation and ongoing weakness in our end markets.
Trading in the second half to date has been in line with our expectations and the outlook for the full year remains unchanged.
Whilst there remains a level of uncertainty around the timing of a wider market recovery, we remain confident in Stelrad's ability to capitalise on the attractiveness of our geographically diversified end markets, underpinned by long-term structural growth drivers, and the opportunities that a market recovery present for a stronger, more agile Stelrad.
Trevor Harvey
Chief Executive Officer
7 August 2026
(1) BRG Building Solutions May 2026
FINANCE AND BUSINESS REVIEW
Group overview
The following table summarises the Group's results from operations for the six months ended 30 June 2026 and 30 June 2025.
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Movement |
Movement |
|
|
£m |
£m |
£m |
% |
|
Revenue |
124.0 |
136.5 |
(12.5) |
(9.1) |
|
EBITDA(1) |
22.4 |
21.8 |
0.6 |
2.9 |
|
Adjusted operating profit(1) |
16.7 |
15.9 |
0.8 |
4.9 |
|
Exceptional items |
(1.0) |
(12.0) |
11.0 |
91.4 |
|
Amortisation of customer relationships |
- |
(0.1) |
0.1 |
n/a |
|
Operating profit |
15.7 |
3.8 |
11.9 |
307.6 |
|
Net finance costs |
(2.6) |
(3.7) |
1.1 |
31.9 |
|
Profit before tax |
13.1 |
0.1 |
13.0 |
13,287.8 |
|
Income tax expense |
(4.4) |
(3.5) |
(0.9) |
(25.9) |
|
Profit/(loss) for the period |
8.7 |
(3.4) |
12.1 |
351.3 |
|
Earnings/(loss) per share - basic (p) |
6.80 |
(2.71) |
9.51 |
351.3 |
|
Adjusted profit for the period(1) |
9.5 |
8.2 |
1.3 |
16.0 |
|
Adjusted earnings per share - basic (p)(1) |
7.43 |
6.41 |
1.02 |
16.0 |
|
Dividend per share (p) |
3.19 |
3.04 |
0.15 |
5 |
|
Return on capital employed (%)(1) |
29.0 |
26.9 |
n/a |
2.1 ppts |
|
Net debt before lease liabilities(1) |
57.5 |
64.8 |
(7.3) |
(11.2) |
(1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement.
Financial overview
The first half saw a strong operating performance with benefits from the successful delivery of our commercial and operational initiatives enabling the Group to more than offset the impact of ongoing reduction in demand. Whilst there were positive year-on-year trends across some of our core European geographies, UK & Ireland continued to see subdued renovation activity driven by a challenging macroeconomic environment and lower consumer confidence. Volumes in the French market have also been subdued in the first half of 2026, in part due to overstocking by customers in 2025.
Revenue for the six months ended 30 June 2026 was £124.0 million, a decrease of £12.5 million, or 9.1%, on the six months ended 30 June 2025 (2025: £136.5 million). The decline in revenue was mainly due to a 14.6% decline in sales volumes during the period, offset in part by selling price benefits. Volume reductions were significantly impacted by the exit from a loss-making contract at the end of 2025 (c. £5.0 million revenue impact) and commercial strategy to reduce sales volumes in some lower margin territories (c. £4.0m revenue impact in Turkey), as well as market demand remaining subdued.
Adjusted operating profit for the period was £16.7 million, an increase of £0.8 million, or 4.9%, compared to the same period last year (2025: £15.9 million). The increase in adjusted operating profit arose despite the 14.6% decrease in sales volumes. Adjusted operating profit margin of 13.5% (2025: 11.7%) has been positively impacted by the exit from a loss-making contract and reduced volumes to some lower margin territories and market sectors.
Statutory operating profit for the period was £15.7 million, an increase of £11.9 million, or 307.6%, compared to the prior year (2025: £3.8 million). Statutory operating profit is stated after the deduction of exceptional items of £1.0 million related to redundancy costs in our Turkish business (2025: exceptional items of £12.0 million related to an impairment charge on the assets of Radiators SpA) and the amortisation of customer relationships of £nil (2025: £0.1 million).
Contribution per radiator has increased significantly to £24.32 (2025: £20.33), benefitting from continued operational control and margin management initiatives, the exit from a loss-making contract and, crucially, due to subdued volumes in some lower margin territories and market sectors. The favourable market and mix trends seen in the first half of 2026 are not expected to continue in the event of a wider market recovery.
The Group continues to focus on the sale of premium products throughout its markets, recognising the additional margin that these products generate. Year-on-year, the proportion of premium panel sales to total steel panel volumes increased by 0.1 ppts to 6.2%, with further progress expected as the economic environment improves.
The statutory profit for the period was £8.7 million (2025: loss of £3.4 million, due to exceptional items of £12.0 million). Adjusted profit for the period grew by £1.3 million to £9.5 million (2025: £8.2 million). Interest charges reduced by £1.1 million year-on-year as levels of debt continue to fall in conjunction with lower average interest rates. Tax charges increased year-on-year due to an increase in underlying earnings and the impact of tax credits on exceptional items in the first half of 2025; the adjusted effective tax rate remains consistent year-on-year.
Basic earnings per share was 6.80 pence (2025: loss per share 2.71 pence). Basic adjusted earnings per share was 7.43 pence (2025: 6.41 pence).
At 30 June 2026 the Group had cash of £17.6 million (31 December 2025: £19.0 million; 30 June 2025: £17.6 million) and undrawn available facilities of £25.3 million (31 December 2025: £30.6 million; 30 June 2025: £17.9 million), with net debt before lease liabilities of £57.5 million (31 December 2025: £51.1 million; 30 June 2025: £64.8 million).
Working capital at 30 June 2026 reflects a seasonal high point prior to the heating season, with the lowest level of working capital historically experienced in December. Investments in working capital have been made in the period to increase warehouse stocking in our Turkish facility in order to enhance customer relationships in our end markets. The Group expects a reduction in net debt by the end of the financial year, reflecting the seasonality of working capital investment.
The Group has made pleasing progress towards its medium-term targets in the period, despite challenging market conditions, with growth in adjusted operating profit margins, contribution per radiator and return on capital employed. The targets for contribution per radiator, operating profit margin and adjusted operating cash flow conversion (on an LTM basis) have been met at 30 June 2026. The Board remain confident in the ability for the Group to achieve all medium-term targets, however, note that the operating profit margins and contribution per radiator targets have temporarily benefited from weak market conditions in some lower margin territories and market sectors. The board remains confident that these targets are sustainable in the medium-term.
Revenue by geographical market
The table below sets out the Group's revenue by geographical market.
|
Revenue by geographical market |
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Movement |
Movement |
|
|
£m |
£m |
£m |
% |
|
UK & Ireland |
62.4 |
65.1 |
(2.7) |
(4.0) |
|
Europe |
58.2 |
62.9 |
(4.7) |
(7.4) |
|
Turkey & International |
3.4 |
8.5 |
(5.1) |
(60.6) |
|
Total |
124.0 |
136.5 |
(12.5) |
(9.1) |
UK & Ireland
The Group's revenue in the UK & Ireland for the period was £62.4 million (2025: £65.1 million), a decrease of £2.7 million, or 4.0%. This was principally a result of a decrease in sales volumes of 6.6%, partially offset by selling price increases and market mix benefits resulting from a supressed new build environment.
Europe
The Group's revenue in Europe for the period was £58.2 million (2025: £62.9 million), a decrease of £4.7 million, or 7.4%, as a result of a 14.4% decrease in sales volumes, partially offset by the impact of lower average Euro exchange rates in the period and favourable sales mix. Sales mix has benefitted from the exit from a loss-making contract (c. £5.0 million revenue impact) and subdued volumes in the French market, due in part to overstocking by customers in 2025, both of which have lower average selling prices per unit. Encouragingly, we note certain key geographies in Europe have shown a year-on-year increase in volumes, including the Netherlands, Sweden, Poland and Denmark, with Europe showing broader stability in recent periods.
Turkey & International
The Group's revenue in Turkey & International for the period was £3.4 million (2025: £8.5 million), a decrease of £5.1 million, or 60.6%. This was principally a result of lower volumes sold in Turkey (c. £4.0 million revenue impact), driven by commercial strategy to reduce sales volumes in this lower margin territory.
Adjusted operating profit by geographical market
The table below sets out the Group's adjusted operating profit by geographical market.
|
Adjusted operating profit by geographical market |
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Movement |
Movement |
|
|
£m |
£m |
£m |
% |
|
UK & Ireland |
14.1 |
15.0 |
(0.9) |
(6.3) |
|
Europe |
6.3 |
3.6 |
2.7 |
76.3 |
|
Turkey & International |
0.2 |
0.7 |
(0.5) |
(65.6) |
|
Central costs |
(3.9) |
(3.4) |
(0.5) |
(14.5) |
|
Total |
16.7 |
15.9 |
0.8 |
4.9 |
UK & Ireland
The Group's adjusted operating profit in the UK & Ireland for the period was £14.1 million (2025: £15.0 million), a decrease of £0.9 million, or 6.3%, driven largely by the revenue reduction of 4.0%. Contribution per radiator has improved year-on-year, benefitting from good margin management, but the impact of adverse volumes on a stable fixed cost base has reduced the adjusted operating profit.
Europe
The Group's adjusted operating profit in Europe for the period was £6.3 million (2025: £3.6 million), an increase of £2.7 million, or 76.3%. This is impacted significantly by the exit from a loss-making contract at the end of 2025 and subdued volumes in the low-margin French market, due in part to overstocking by customers in 2025. Additionally, positive trends have been seen in some profitable markets such as the Netherlands and Poland.
Turkey & International
The Group's adjusted operating profit in Turkey & International for the period was £0.2 million (2025: £0.7 million), a decrease of £0.5 million, or 65.6%. The decrease is driven by volume reductions linked to commercial strategy.
Central costs
Central costs, including Group share-based payment charges, for the period were £3.9 million (2025: £3.4 million), an increase of £0.5 million, or 14.5%.
Exceptional items
During the six months ended 30 June 2026, operating profit is stated after exceptional items of £1.0 million related to redundancy costs in our Turkish business. The costs were incurred to right size the business in light of reduced market demand.
In comparison, during the six months ended 30 June 2025, operating profit is stated after exceptional items of £12.0 million. The non-cash exceptional items relate to impairment of goodwill of £2.6 million, impairment of customer relationships of £1.4 million, impairment of property, plant and equipment of £5.7 million and a provision against inventories of £2.3 million, all within the Radiators SpA business.
Finance costs
The Group's finance costs for the period were £2.6 million (2025: £3.7 million). The decrease of £1.1 million is due to lower levels of debt in the first half of 2026 and comparatively lower average interest rates year-on-year (4.5% in the first half of 2026 compared to 5.6% in the first half of 2025).
Income tax expense
The Group's income tax expense for the period was £4.4 million (2025: £3.5 million), an increase of £0.9 million. The year-on-year increase in the tax charge is due to an increase in underlying earnings and the impact of tax credits on exceptional items in the first half of 2025. The adjusted effective tax rate remains consistent year-on-year.
Earnings/(loss) per share and adjusted earnings per share
Adjusted profit for the period increased to £9.5 million (2025: £8.2 million) and consequently basic adjusted earnings per share was 7.43 pence (2025: 6.41 pence).
Results for the period increased to a profit of £8.7 million (2025: loss of £3.4m) and basic earnings per share was 6.80 pence (2025: loss per share 2.71 pence) due to the impact of the exceptional items, net of tax, of £0.8 million in the period (2025: £11.6 million). The basic weighted average number of shares was 127.4 million (2025: 127.4 million).
Dividend
The Group is committed to delivering returns for its shareholders via a progressive dividend policy. The Board has confidence in the Group's financial position and believes that its leading market positions, regulatory tailwinds, product premiumisation upside and favourable contribution per radiator will lead to strong future financial performance. On this basis, the Group recommends payment of an interim dividend of 3.19 pence per share (2025: 3.04 pence per share), an increase of 5% on the 2025 interim dividend, on 23 October 2026 to shareholders on the register on 9 October 2026.
The Group paid its final dividend for 2025 of 5.05 pence per share in May 2026, resulting in a total dividend for 2025 of 8.09 pence per share.
Cash flows
The following table summarises the Group's cash flow for the six months ended 30 June 2026 and 30 June 2025.
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Movement |
|
|
£m |
£m |
£m |
|
EBITDA |
22.4 |
21.8 |
0.6 |
|
Exceptional items |
(1.0) |
- |
(1.0) |
|
Gain on disposal of property, plant and equipment |
(0.1) |
(0.1) |
- |
|
Share-based payment charge - net of settled |
0.4 |
0.6 |
(0.2) |
|
Working capital |
(11.0) |
(9.0) |
(2.0) |
|
Net capital expenditure |
(3.5) |
(3.7) |
0.2 |
|
Cash flow from operations(1) |
7.2 |
9.6 |
(2.4) |
|
Income tax paid |
(5.5) |
(4.8) |
(0.7) |
|
Net interest paid |
(1.9) |
(3.0) |
1.1 |
|
Free cash flow(1) |
(0.2) |
1.8 |
(2.0) |
|
|
|
|
|
|
Cash flow from operations |
7.2 |
9.6 |
(2.4) |
|
Adjusted for |
|
|
|
|
Exceptional items |
1.0 |
- |
1.0 |
|
Exceptional items, impact on working capital |
(0.9) |
- |
(0.9) |
|
Adjusted cash flow from operations |
7.3 |
9.6 |
(2.3) |
|
|
Six months ended 30 June 2026 |
Six months ended 30 June 2025 |
Movement |
|
Adjusted cash flow from operations(1) (£m) |
7.3 |
9.6 |
(2.3) |
|
|
|
|
|
|
Adjusted operating profit(1) (£m) |
16.7 |
15.9 |
0.8 |
|
|
|
|
|
|
Adjusted cash flow from operations conversion(1) (%) |
43.9 |
60.5 |
(16.6)ppts |
(1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement.
The Group's free cash outflow for the period was £0.2 million (2025: inflow of £1.8 million), a decrease of £2.0 million. This reflects investments in working capital and higher tax paid, partially offset by lower interest payments.
The Group's adjusted cash flow from operations for the period was £7.3 million (2025: £9.6 million), a decrease of £2.3 million. Adjusted operating profit for the period was £16.7 million (2025: £15.9 million), an increase of £0.8 million. Adjusted cash flow from operations conversion for the period was 43.9% (2025: 60.5%). Adjusted cash flow conversion is expected to improve in the second half of the year due to the timing of working capital movements.
Capital expenditures
The Group's capital expenditures mainly relate to investment in operating plant and equipment. Key capital expenditure in the period ended 30 June 2026 related to various maintenance and upgrade projects. Capital expenditure for the remainder of 2026 will be in line with expectations.
Return on capital employed and capital allocation priorities
Return on capital employed for the period was 29.0% (2025: 26.9%), an increase of 2.1 ppts. This improvement is due to an increase in adjusted operating profit and lower fixed asset balances year-on-year.
Capital allocation considerations remain high on the Group's agenda, and both the 2025 and 2026 investments in working capital are considered a key part of the Group's prioritisation of investment for organic growth under its capital allocation framework set out at the Capital Markets Event in November 2024. Additionally, dividends have progressively increased by 5%, whilst the Group's debt leverage ratio before lease liabilities has reduced to 1.29x (30 June 2025: 1.48x), demonstrating a controlled and balanced approach to capital allocation and balance sheet prudence given the challenging macroeconomic environment over an extended period.
Net debt and leverage
At 30 June 2026, net debt (including lease liabilities) of £64.1 million (31 December 2025: £58.7 million) comprises £75.1 million (31 December 2025: £70.1 million) drawn down against the multicurrency facility and £6.6 million (31 December 2025: £7.6 million) lease liabilities net of £17.6 million (December 2025: £19.0 million) cash.
|
|
30 June 2026 |
31 December 2025 |
|
|
£m |
£m |
|
Revolving credit facility - GBP |
25.9 |
32.3 |
|
Revolving credit facility - EUR |
24.8 |
13.1 |
|
Term loan |
24.4 |
24.7 |
|
Cash |
(17.6) |
(19.0) |
|
Net debt before lease liabilities |
57.5 |
51.1 |
|
Lease liabilities |
6.6 |
7.6 |
|
Net debt |
64.1 |
58.7 |
|
|
|
|
|
EBITDA (rolling 12 months) |
44.5 |
44.1 |
|
Debt leverage ratio before lease liabilities |
1.29x |
1.16x |
The debt leverage ratio before lease liabilities at 30 June 2026 was 1.29x (31 December 2025: 1.16x; 30 June 2025: 1.48x).
Going concern
After reviewing the Group's current liquidity, net debt, financial forecasts and stress testing of potential risks, the Board confirms there are no material uncertainties which impact the Group's ability to continue as a going concern for at least twelve months from the date of approval of the financial statements and therefore these condensed consolidated interim financial statements have been prepared on a going concern basis.
The financial position of the Group remains robust. The Group has in place a £100 million multicurrency facility, made up of a £76.0 million revolving credit facility and a €28.3 million term loan facility. At 30 June 2026, the entire term loan was drawn along with £50.7 million of the revolving credit facility. The facility matures in December 2028, with an extension option for two further years.
Leigh Wilcox
Chief Financial Officer
7 August 2026
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors confirm that these condensed consolidated interim financial statements have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management report includes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months of the financial year; and
· material related party transactions in the first six months and any material changes in the related party transactions described in the last annual report.
The directors of Stelrad Group plc who served during the six months ended 30 June 2026 and up to the date of signing of these condensed consolidated interim financial statements were as follows:
Martyn Coffey (appointed on 1 May 2026)
Trevor Harvey
Leigh Wilcox
Bob Ellis
Edmund Lazarus
Katherine Innes Ker
Nicola Bruce
Stuart Watson (appointed on 19 June 2026)
Nicholas Armstrong (resigned on 20 May 2026)
Martin Payne (resigned on 20 May 2026)
For and on behalf of the Board
Leigh Wilcox
Chief Financial Officer
7 August 2026
Stelrad Group plc. Registered number 13670010
Independent review report to Stelrad Group plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Stelrad Group plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim results of Stelrad Group plc for the six month period ended 30 June 2026 (the "period").
Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
The interim financial statements comprise:
● the Condensed consolidated interim balance sheet as at 30 June 2026;
● the Condensed consolidated interim income statement and the Condensed consolidated interim statement of comprehensive income for the period then ended;
● the Condensed consolidated interim statement of cash flows for the period then ended;
● the Condensed consolidated interim statement of changes in equity for the period then ended; and
● the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim results of Stelrad Group plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
We have read the other information contained in the Interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial statements in the Interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report.
Use of this report
This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
PricewaterhouseCoopers LLP
Chartered Accountants
Newcastle upon Tyne
7 August 2026
Stelrad Group plc
Condensed consolidated interim income statement
for the six months ended 30 June 2026
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
|
|
|
|
|
|
|
Notes |
£'000 |
|
£'000 |
|
£'000 |
|
Continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue |
5 |
124,005 |
|
136,475 |
|
279,598 |
|
|
|
|
|
|
|
|
|
Cost of sales |
|
(80,434) |
|
(93,991) |
|
(193,327) |
|
|
|
|
|
|
|
|
|
Gross profit |
|
43,571 |
|
42,484 |
|
86,271 |
|
|
|
|
|
|
|
|
|
Selling and distribution expenses |
|
(19,724) |
|
(19,699) |
|
(40,588) |
|
Administrative expenses |
|
(8,813) |
|
(8,788) |
|
(16,282) |
|
Other operating income/(expenses) |
6 |
1,664 |
|
1,848 |
|
3,001 |
|
Exceptional items |
7 |
(1,028) |
|
(12,001) |
|
(14,925) |
|
|
|
|
|
|
|
|
|
Operating profit |
5 |
15,670 |
|
3,844 |
|
17,477 |
|
|
|
|
|
|
|
|
|
Finance income |
|
80 |
|
86 |
|
173 |
|
Finance costs |
|
(2,630) |
|
(3,832) |
|
(7,576) |
|
|
|
|
|
|
|
|
|
Profit before tax |
|
13,120 |
|
98 |
|
10,074 |
|
|
|
|
|
|
|
|
|
Income tax expense |
8 |
(4,462) |
|
(3,543) |
|
(9,230) |
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
|
8,658 |
|
(3,445) |
|
844 |
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
|
|
Basic |
9 |
6.80p |
|
(2.71)p |
|
0.66p |
|
Diluted |
9 |
6.79p |
|
(2.66)p |
|
0.66p |
|
|
|
|
|
|
|
|
Stelrad Group plc
Condensed consolidated interim statement of comprehensive income
for the six months ended 30 June 2026
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
|
|
|
|
|
|
|
Notes |
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Profit/(loss) for the period |
|
8,658 |
|
(3,445) |
|
844 |
|
|
|
|
|
|
|
|
|
Other comprehensive income/(expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive (expense)/ income that may be reclassified to profit or loss in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net gain/(loss) on monetary items forming part of net investment in foreign operations and qualifying hedges of net investments in foreign operations |
|
510 |
|
(723) |
|
(916) |
|
Income tax effect |
8 |
(128) |
|
181 |
|
229 |
|
|
|
|
|
|
|
|
|
Exchange differences on translation of foreign operations |
|
(1,490) |
|
3,300 |
|
5,009 |
|
|
|
|
|
|
|
|
|
Net other comprehensive (expense)/income that may be reclassified to profit or loss in subsequent periods |
|
(1,108) |
|
2,758 |
|
4,322 |
|
|
|
|
|
|
|
|
|
Other comprehensive expense not to be reclassified to profit or loss in subsequent periods: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Remeasurement losses on defined benefit plans |
|
(188) |
|
(63) |
|
(113) |
|
Income tax effect |
8 |
47 |
|
16 |
|
28 |
|
|
|
|
|
|
|
|
|
Net other comprehensive expense not to be reclassified to profit or loss in subsequent periods |
|
(141) |
|
(47) |
|
(85) |
|
|
|
|
|
|
|
|
|
Other comprehensive (expense)/income for the period, net of tax |
|
(1,249) |
|
2,711 |
|
4,237 |
|
|
|
|
|
|
|
|
|
Total comprehensive income/(expense) for the period, net of tax attributable to owners of the parent |
|
7,409 |
|
(734) |
|
5,081 |
|
|
|
|
|
|
|
|
Stelrad Group plc (Registered Number 13670010)
Condensed consolidated interim balance sheet
as at 30 June 2026
|
|
|
|
30 June 2026 (not audited) |
|
30 June 2025 (not audited) |
|
31 December 2025 (audited) |
|
|
|
|
|
|
|
|
|
|
|
Notes |
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
|
Property, plant and equipment |
|
|
68,732 |
|
73,781 |
|
72,491 |
|
Intangible assets |
|
|
251 |
|
547 |
|
347 |
|
Trade and other receivables |
|
|
296 |
|
295 |
|
299 |
|
Deferred tax assets |
|
|
5,441 |
|
6,241 |
|
4,836 |
|
|
|
|
74,720 |
|
80,864 |
|
77,973 |
|
Current assets |
|
|
|
|
|
|
|
|
Inventories |
|
|
70,656 |
|
69,786 |
|
62,402 |
|
Trade and other receivables |
|
|
42,746 |
|
48,871 |
|
47,164 |
|
Income tax receivable |
|
|
102 |
|
254 |
|
348 |
|
Financial assets |
11 |
|
522 |
|
- |
|
- |
|
Cash and cash equivalents |
|
|
17,576 |
|
17,572 |
|
18,978 |
|
|
|
|
131,602 |
|
136,483 |
|
128,892 |
|
|
|
|
|
|
|
|
|
|
Total assets |
|
|
206,322 |
|
217,347 |
|
206,865 |
|
|
|
|
|
|
|
|
|
|
Equity and liabilities |
|
|
|
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
|
Share capital |
|
|
127 |
|
127 |
|
127 |
|
Merger reserve |
|
|
(114,469) |
|
(114,469) |
|
(114,469) |
|
Retained earnings |
|
|
233,665 |
|
230,758 |
|
231,253 |
|
Foreign currency reserve |
|
|
(64,639) |
|
(65,095) |
|
(63,531) |
|
Total equity |
|
|
54,684 |
|
51,321 |
|
53,380 |
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
Interest-bearing loans and borrowings |
11 |
|
78,628 |
|
87,767 |
|
74,411 |
|
Deferred tax liabilities |
|
|
222 |
|
217 |
|
222 |
|
Provisions |
|
|
1,728 |
|
1,800 |
|
1,832 |
|
Net employee defined benefit liabilities |
13 |
|
4,562 |
|
4,537 |
|
4,625 |
|
|
|
|
85,140 |
|
94,321 |
|
81,090 |
|
Current liabilities |
|
|
|
|
|
|
|
|
Trade and other payables |
|
|
60,814 |
|
67,635 |
|
67,058 |
|
Financial liabilities |
11 |
|
- |
|
505 |
|
221 |
|
Interest-bearing loans and borrowings |
11 |
|
2,449 |
|
2,456 |
|
2,579 |
|
Income tax payable |
|
|
961 |
|
418 |
|
1,466 |
|
Provisions |
|
|
2,274 |
|
691 |
|
1,071 |
|
|
|
|
66,498 |
|
71,705 |
|
72,395 |
|
|
|
|
|
|
|
|
|
|
Total liabilities |
|
|
151,638 |
|
166,026 |
|
153,485 |
|
Total equity and liabilities |
|
|
206,322 |
|
217,347 |
|
206,865 |
|
|
|
|
|
|
|
|
|
The consolidated interim financial statements on pages 18 to 34 were approved by the Board of Directors on 7 August 2026 and signed on its behalf by:
Leigh Wilcox
Chief Financial Officer
Stelrad Group plc
Condensed consolidated interim statement of changes in equity
for the six months ended 30 June 2026
|
|
Attributable to the owners of the parent |
|
|||||||||||
|
|
|
|
Issued share capital |
|
Merger reserve |
|
Retained earnings |
|
Foreign currency |
|
Total |
||
|
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
At 31 December 2024 (audited) |
|
|
127 |
|
(114,469) |
|
239,788 |
|
(67,853) |
|
57,593 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Profit for the year |
|
|
- |
|
- |
|
844 |
|
- |
|
844 |
||
|
Other comprehensive income/(expense) for the year |
|
|
- |
|
- |
|
(85) |
|
4,322 |
|
4,237 |
||
|
Total comprehensive income/(expense) |
|
|
- |
|
- |
|
759 |
|
4,322 |
|
5,081 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Share-based payment charge |
|
|
- |
|
- |
|
704 |
|
- |
|
704 |
||
|
Dividends paid (note 10) |
|
|
- |
|
- |
|
(9,998) |
|
- |
|
(9,998) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
At 31 December 2025 (audited) |
|
|
127 |
|
(114,469) |
|
231,253 |
|
(63,531) |
|
53,380 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Profit for the period |
|
|
- |
|
- |
|
8,658 |
|
- |
|
8,658 |
||
|
Other comprehensive income/(expense) for the period |
|
|
- |
|
- |
|
(141) |
|
(1,108) |
|
(1,249) |
||
|
Total comprehensive income/(expense) |
|
|
- |
|
- |
|
8,517 |
|
(1,108) |
|
7,409 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Share-based payment charge |
|
|
- |
|
- |
|
462 |
|
- |
|
462 |
||
|
Share-based payments settled |
|
|
- |
|
- |
|
(136) |
|
- |
|
(136) |
||
|
Dividends paid (note 10) |
|
|
- |
|
- |
|
(6,431) |
|
- |
|
(6,431) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
At 30 June 2026 (not audited) |
|
|
127 |
|
(114,469) |
|
233,665 |
|
(64,639) |
|
54,684 |
||
|
|
Attributable to the owners of the parent |
|
|||||||||||
|
|
|
|
Issued share capital |
|
Merger reserve |
|
Retained earnings |
|
Foreign currency |
|
Total |
||
|
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
At 31 December 2024 (audited) |
|
|
127 |
|
(114,469) |
|
239,788 |
|
(67,853) |
|
57,593 |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Loss for the period |
|
|
- |
|
- |
|
(3,445) |
|
- |
|
(3,445) |
||
|
Other comprehensive income/(expense) for the period |
|
|
- |
|
- |
|
(47) |
|
2,758 |
|
2,711 |
||
|
Total comprehensive income/(expense) |
|
|
- |
|
- |
|
(3,492) |
|
2,758 |
|
(734) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Share-based payment charge |
|
|
- |
|
- |
|
588 |
|
- |
|
588 |
||
|
Dividends paid (note 10) |
|
|
- |
|
- |
|
(6,126) |
|
- |
|
(6,126) |
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
At 30 June 2025 (not audited) |
|
|
127 |
|
(114,469) |
|
230,758 |
|
(65,095) |
|
51,321 |
||
Stelrad Group plc
Condensed consolidated interim statement of cash flows
for the six months ended 30 June 2026
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
Operating activities |
|
|
|
|
|
|
|
Profit before tax |
|
13,120 |
|
98 |
|
10,074 |
|
|
|
|
|
|
|
|
|
Adjustments to reconcile profit before tax to net cash flows: |
|
|
|
|
|
|
|
Depreciation of property, plant and equipment |
|
5,658 |
|
5,776 |
|
11,393 |
|
Amortisation of intangible assets |
|
92 |
|
190 |
|
330 |
|
Gain on disposal of property, plant and equipment |
|
(55) |
|
(71) |
|
(80) |
|
Share-based payment charge - net of settled |
|
326 |
|
588 |
|
704 |
|
Exceptional items - non-cash elements |
|
- |
|
12,001 |
|
12,663 |
|
Finance income |
|
(80) |
|
(86) |
|
(173) |
|
Finance costs |
|
2,630 |
|
3,832 |
|
7,576 |
|
|
|
|
|
|
|
|
|
Working capital adjustments: |
|
|
|
|
|
|
|
Decrease / (increase) in trade and other receivables |
|
3,516 |
|
(2,360) |
|
517 |
|
(Increase) / decrease in inventories |
|
(8,911) |
|
(2,992) |
|
4,690 |
|
Decrease in trade and other payables |
|
(5,382) |
|
(2,819) |
|
(4,430) |
|
Increase / (decrease) in provisions |
|
1,146 |
|
(261) |
|
94 |
|
Movement in other financial assets / liabilities |
|
(740) |
|
809 |
|
531 |
|
Decrease in other pension provisions |
|
- |
|
- |
|
(1) |
|
Difference between pension charge and cash contributions |
|
(648) |
|
(1,375) |
|
(1,921) |
|
|
|
10,672 |
|
13,330 |
|
41,967 |
|
|
|
|
|
|
|
|
|
Income tax paid |
|
(5,457) |
|
(4,769) |
|
(8,000) |
|
Interest received |
|
80 |
|
86 |
|
173 |
|
|
|
|
|
|
|
|
|
Net cash flows from operating activities |
|
5,295 |
|
8,647 |
|
34,140 |
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
Proceeds from sale of property, plant, equipment and intangible assets |
|
110 |
|
68 |
|
185 |
|
Purchase of property, plant and equipment |
|
(2,261) |
|
(2,626) |
|
(5,215) |
|
Purchase of intangible assets |
|
- |
|
(18) |
|
(35) |
|
|
|
|
|
|
|
|
|
Net cash flows used in investing activities |
|
(2,151) |
|
(2,576) |
|
(5,065) |
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
Transaction costs relating to refinancing |
|
- |
|
- |
|
(733) |
|
Proceeds from external borrowings |
|
11,965 |
|
2,736 |
|
- |
|
Repayment of external borrowings |
|
(6,400) |
|
- |
|
(10,219) |
|
Payment of lease liabilities |
|
(1,351) |
|
(1,134) |
|
(2,662) |
|
Interest paid |
|
(2,017) |
|
(3,121) |
|
(5,905) |
|
Dividends paid |
|
(6,431) |
|
(6,126) |
|
(9,998) |
|
|
|
|
|
|
|
|
|
Net cash flows used in financing activities |
|
(4,234) |
|
(7,645) |
|
(29,517) |
|
|
|
|
|
|
|
|
|
Net decrease in cash and cash equivalents |
|
(1,090) |
|
(1,574) |
|
(442) |
|
Net foreign exchange difference |
|
(312) |
|
513 |
|
787 |
|
Cash and cash equivalents at start of period |
|
18,978 |
|
18,633 |
|
18,633 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents at end of period |
|
17,576 |
|
17,572 |
|
18,978 |
Stelrad Group plc
Notes to the condensed consolidated interim financial statements
for the six months ended 30 June 2026
1 Corporate information
Stelrad Group plc is a public limited company that is incorporated, domiciled and has its registered office in England and Wales.
2 Basis of preparation
The condensed consolidated interim financial statements for the half-year reporting period ended 30 June 2026 have been prepared in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the disclosure guidance and transparency rules sourcebook of the United Kingdom's Financial Conduct Authority.
The interim financial statements do not include all of the notes of the type normally included in annual financial statements. Accordingly, this report is to be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2025, which has been prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006, and any public announcements made by Stelrad Group plc during the interim reporting period. The condensed consolidated interim financial statements have been prepared using the same material accounting policies and methods of computation used to prepare the Group's 2025 Annual Report and Accounts as described on pages 114 to 122 of that report, which can be found on the Group's website at www.stelradplc.com, and the adoption of new standards and interpretations, noted below.
The condensed consolidated interim financial statements have not been prepared using any new accounting policies in the six months ended 30 June 2026.
The 2025 annual consolidated financial statements of the Group were prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and the disclosure guidance and transparency rules sourcebook of the United Kingdom's Financial Conduct Authority.
The financial statements for the six months ended 30 June 2026 and the comparative financial statements for the six months ended 30 June 2025 have not been audited. However, the financial statements for the six months ended 30 June 2026 and the six months ended 30 June 2025 have been reviewed by the auditor, PricewaterhouseCoopers LLP. The comparative financial statements for the year ended 31 December 2025 have been extracted from the 2025 Annual Report and Accounts. The financial statements contained in this interim report do not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and do not reflect all of the information contained in the Group's 2025 Annual Report and Accounts. The statutory accounts for the year ended 31 December 2025, which were approved by the Board of Directors on 13 March 2026 and have been filed with the Registrar of Companies, received an unqualified audit report which did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.
Going concern
In preparing these financial statements on the going concern basis, the directors have considered the Group's current and future prospects and its availability of cash resources and financing and the Group's financial position.
The Group meets its day-to-day working capital requirements through a bank loan facility which is in place up to December 2028. At the period-end date the Group had drawn down £75.1 million of a £100 million loan facility. The remainder of the facility and significant cash balances of £17.6 million are available to enable day-to-day working capital requirements to be met.
As part of their period-end review, management has performed a detailed going concern review, based on severe but plausible conditions, looking at the group's liquidity and banking covenant compliance, examining expected future performance. The Board have also reviewed the risks and uncertainties facing the business. Based on the output of these going concern reviews, management have concluded that the Group will be able to continue to operate within its existing facilities for at least twelve months from the date of approval of the financial statements and as such the financial statements have been prepared on a going concern basis.
New standards and interpretations applied in the period
The following amendments and interpretations apply for the first time in 2026, but do not have a material impact on the consolidated financial statements of the Group. These include:
· Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7
· Annual Improvements to IFRS Accounting Standards - Volume 11
· Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7
New standards and interpretations not applied
The International Accounting Standards Board has issued the following standards and interpretations with an effective date after the date of these financial statements:
|
International Accounting Standards (IAS/IFRSs) |
Effective date (period beginning on or after) |
|
IFRS 18 - Presentation and Disclosure in Financial Statements |
1 January 2027 |
|
IFRS 19 - Subsidiaries without Public Accountability: Disclosures |
1 January 2027 |
The Group is continuing to assess the full impact of IFRS 18 and, based on the assessment performed to date, expects the impact to result primarily in presentation and disclosure changes. These are expected to include new mandatory subtotals within the consolidated statement of profit or loss and revised categorisations of certain income and expenses, for example presenting interest income on cash deposits within the investing category. The Group have identified that IFRS 18 will also introduce enhanced disaggregation and disclosure requirements in some line items of the financial statements. The introduction of IFRS 18 will require additional disclosures for any measures that meet the definition of a management-defined performance measure. Comparative information will be restated on adoption in 2027.
It is anticipated that adoption of the remaining standards and interpretations will not have a material impact on the Group's financial statements.
The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective.
3 Significant accounting judgements, estimates and assumptions
The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.
Judgements
In the process of applying the Group's accounting policies, management has made judgements which would have a significant effect on the amounts recognised in the consolidated financial statements.
The judgements used in the condensed consolidated interim financial statements are detailed in the Group's 2025 Annual Report and Accounts on pages 123 of that report, which can be found on the Group's website at www.stelradplc.com.
No new judgements have been applied to the condensed consolidated interim financial statements in the six months ended 30 June 2026. However, the judgements related to impairment of non-financial assets and impairment of inventories that were disclosed in the 2025 Annual Report and Accounts are no longer considered significant judgements in the condensed consolidated interim financial statements for the six months ended 30 June 2026, following the impairment of goodwill, customer contracts and property, plant & equipment and an exceptional inventory provision recognised in the 2025 financial statements.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described in the Group's 2025 Annual Report and Accounts on page 123 of that report. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur.
The estimates and assumptions used in the condensed consolidated interim financial statements are detailed in the Group's 2025 Annual Report and Accounts on page 123 of that report, which can be found on the Group's website at www.stelradplc.com.
No new estimates and assumptions have been applied to the condensed consolidated interim financial statements in the six months ended 30 June 2026.
4 Principal risks
The Board has undertaken a review of the principal risks affecting the Group for the six months ended 30 June 2026. The Board considers that the principal risks, as discussed in the 'Risk management' section on pages 46 to 53 of the Group Annual Report and Accounts for the year ended 31 December 2025 (available on the Group's website www.stelradplc.com), remain relevant.
5 Segmental information
IFRS 8 Operating Segments requires operating segments to be determined by the Group's internal reporting to the Chief Operating Decision Maker ("CODM"). The CODM has been determined to be the Chief Executive Officer and Chief Financial Officer. The operating segments are determined to be the key geographical regions in which the Group operates. The CODM receive management information as part of the internal reporting framework based upon the key geographical regions. The CODM assesses the performance of geographical segments based on a measure of revenue and adjusted operating profit.
Adjusted operating profit is earnings before interest, tax, amortisation of customer relationships and exceptional items.
|
Revenue by geographical market |
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
UK & Ireland |
|
62,447 |
|
65,073 |
|
131,254 |
|
Europe |
|
58,195 |
|
62,861 |
|
133,526 |
|
Turkey & International |
|
3,363 |
|
8,541 |
|
14,818 |
|
|
|
|
|
|
|
|
|
Total revenue |
|
124,005 |
|
136,475 |
|
279,598 |
|
|
|
|
|
|
|
|
The revenue arising in the UK, being the Company's country of domicile, was £59,273,000 (six months ended 30 June 2025: £63,595,000; year ended 31 December 2025: £126,046,000).
|
Adjusted operating profit by geographical market |
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
UK & Ireland |
|
14,075 |
|
15,029 |
|
29,959 |
|
Europe |
|
6,289 |
|
3,567 |
|
7,331 |
|
Turkey & International |
|
255 |
|
741 |
|
1,183 |
|
Central costs |
|
(3,921) |
|
(3,424) |
|
(6,002) |
|
|
|
|
|
|
|
|
|
Adjusted operating profit |
|
16,698 |
|
15,913 |
|
32,471 |
|
|
|
|
|
|
|
|
|
Exceptional items (note 7) |
|
(1,028) |
|
(12,001) |
|
(14,925) |
|
Amortisation of customer relationships |
|
- |
|
(68) |
|
(69) |
|
|
|
|
|
|
|
|
|
Operating profit |
|
15,670 |
|
3,844 |
|
17,477 |
|
|
|
|
|
|
|
|
|
Non-current operating assets |
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
UK |
|
13,922 |
|
15,776 |
|
14,662 |
|
The Netherlands |
|
15,717 |
|
17,349 |
|
16,779 |
|
Turkey |
|
25,655 |
|
26,219 |
|
26,622 |
|
Italy |
|
12,939 |
|
14,028 |
|
13,916 |
|
Other |
|
750 |
|
956 |
|
859 |
|
|
|
|
|
|
|
|
|
Total |
|
68,983 |
|
74,328 |
|
72,838 |
The revenue information above is based on the locations of the customers. All revenue arises from the sale of goods.
One customer has revenues in excess of 10% of revenue (six months ended 30 June 2025: one; year ended 31 December 2025: one).
6 Other operating income/(expenses)
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Net gain on disposal of property, plant and equipment |
|
55 |
|
71 |
|
80 |
|
Foreign currency gains |
|
1,006 |
|
2,725 |
|
3,559 |
|
Net gains/(losses) on forward derivative contracts |
|
390 |
|
(1,115) |
|
(1,052) |
|
Sundry other income |
|
213 |
|
167 |
|
414 |
|
|
|
|
|
|
|
|
|
|
|
1,664 |
|
1,848 |
|
3,001 |
7 Exceptional items
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Impairment of goodwill |
|
- |
|
2,648 |
|
2,694 |
|
Impairment of customer relationships |
|
- |
|
1,369 |
|
1,392 |
|
Impairment of property, plant & equipment |
|
- |
|
5,716 |
|
5,814 |
|
Inventory provision |
|
- |
|
2,268 |
|
2,307 |
|
Restructuring costs |
|
1,028 |
|
- |
|
2,718 |
|
|
|
|
|
|
|
|
|
|
|
1,028 |
|
12,001 |
|
14,925 |
The exceptional items in the six months ended 30 June 2026 relate to redundancy costs in the Turkish business.
The exceptional items in the year ended 31 December 2025 and the six months ended 30 June 2025 relate to impairment of assets of the Radiators SpA cash generating unit and an inventory provision, which arose due to circumstances surrounding the impairment. Additionally, restructuring costs were recognised in the year ended 31 December 2025 as a result of proactive margin management initiatives and cost reduction activities across our sites in Turkey, Italy and Denmark.
All exceptional items have been presented as such because they are one-off in nature and separate disclosure allows the underlying trading performance of the Group to be better understood.
8 Income tax expense
The major components of income tax expense are as follows:
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
Consolidated income statement |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current income tax: |
|
|
|
|
|
|
|
Current income tax charge |
|
4,234 |
|
4,547 |
|
8,794 |
|
Adjustments in respect of current income tax charge of previous period |
|
- |
|
- |
|
(41) |
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
|
|
|
|
|
|
Relating to origination and reversal of temporary differences |
|
228 |
|
(1,004) |
|
477 |
|
|
|
|
|
|
|
|
|
Income tax expense reported in the income statement |
|
4,462 |
|
3,543 |
|
9,230 |
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
Consolidated statement of comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax related to items recognised in other comprehensive income/(expense) during the period: |
|
|
|
|
|
|
|
Deferred tax on actuarial loss |
|
(47) |
|
(16) |
|
(28) |
|
Current tax on monetary items forming part of net investment and on hedges of net investment |
|
128 |
|
(181) |
|
(229) |
|
|
|
|
|
|
|
|
|
Income tax expensed to other comprehensive income/(expense) |
|
81 |
|
(197) |
|
(257) |
The taxation charge has been calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period.
9 Earnings per share
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Net profit/(loss) for the period attributable to owners of the parent |
|
8,658 |
|
(3,445) |
|
844 |
|
|
|
|
|
|
|
|
|
Exceptional items (note 7) |
|
1,028 |
|
12,001 |
|
14,925 |
|
Amortisation of customer relationships |
|
- |
|
68 |
|
69 |
|
Refinancing costs |
|
- |
|
- |
|
342 |
|
Tax on exceptional items |
|
(226) |
|
(448) |
|
582 |
|
Tax on amortisation of customer relationships |
|
- |
|
(19) |
|
(19) |
|
Tax on refinancing costs |
|
- |
|
- |
|
(86) |
|
|
|
|
|
|
|
|
|
Adjusted net profit for the period attributable to owners of the parent |
|
9,460 |
|
8,157 |
|
16,657 |
|
|
|
|
|
|
|
|
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
|
|
|
|
|
|
Basic weighted average number of shares in issue |
|
127,352,555 |
|
127,352,555 |
|
127,352,555 |
|
Diluted weighted average number of shares in issue |
|
127,427,841 |
|
129,438,265 |
|
127,474,048 |
|
|
|
|
|
|
|
|
|
Earnings/(loss) per share |
|
|
|
|
|
|
|
Basic earnings/(loss) per share (pence per share) |
|
6.80 |
|
(2.71) |
|
0.66 |
|
Diluted earnings/(loss) per share (pence per share) |
|
6.79 |
|
(2.66) |
|
0.66 |
|
|
|
|
|
|
|
|
|
Adjusted earnings per share |
|
|
|
|
|
|
|
Basic earnings per share (pence per share) |
|
7.43 |
|
6.41 |
|
13.08 |
|
Diluted earnings per share (pence per share) |
|
7.42 |
|
6.30 |
|
13.07 |
10 Dividends paid and proposed
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
Declared and paid during the period |
|
|
|
|
|
|
|
Equity dividend on ordinary shares: |
|
|
|
|
|
|
|
Final dividend for 2025: 5.05p per share (2024: 4.81p per share) |
|
6,431 |
|
6,126 |
|
6,126 |
|
Interim dividend for 2025: 3.04p per share |
|
- |
|
- |
|
3,872 |
|
|
|
|
|
|
|
|
|
|
|
6,431 |
|
6,126 |
|
9,998 |
|
|
|
Six months ended 30 June 2026 (not audited) |
|
Six months ended 30 June 2025 (not audited) |
|
Year ended 31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
Dividend proposed (not recognised as a liability) |
|
|
|
|
|
|
|
Equity dividend on ordinary shares: |
|
|
|
|
|
|
|
Final dividend for 2025: 5.05p per share (2024: 4.81p per share) |
|
- |
|
- |
|
6,431 |
|
Interim dividend for 2026: 3.19p per share (2025: 3.04p per share) |
|
4,063 |
|
3,872 |
|
- |
11 Financial instruments
a) Financial instruments - other - not interest bearing
|
|
|
30 June 2026 (unaudited) |
|
31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
Financial assets |
|
|
|
|
|
|
|
|
|
|
|
Financial instruments at fair value through profit or loss |
|
|
|
|
|
Derivatives not designated as hedges - foreign exchange forward contracts |
|
522 |
|
- |
|
|
|
|
|
|
|
Total instruments at fair value through profit or loss |
|
522 |
|
- |
|
|
|
|
|
|
|
Current |
|
522 |
|
- |
|
Non-current |
|
- |
|
- |
|
|
|
30 June 2026 (unaudited) |
|
31 December 2025 (audited) |
|
|
|
£'000 |
|
£'000 |
|
Financial liabilities |
|
|
|
|
|
|
|
|
|
|
|
Financial instruments at fair value through profit or loss |
|
|
|
|
|
Derivatives not designated as hedges - foreign exchange forward contracts |
|
- |
|
221 |
|
|
|
|
|
|
|
Total instruments at fair value through profit or loss |
|
- |
|
221 |
|
|
|
|
|
|
|
Current |
|
- |
|
221 |
|
Non-current |
|
- |
|
- |
Financial instruments through profit or loss reflect the change in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected sales and purchases.
b) Financial instruments - interest-bearing loans and borrowings
|
|
Effective interest rate |
Maturity |
|
30 June 2026 (not audited) |
|
31 December 2025 (audited) |
|
|
% |
|
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
Current interest-bearing loans and borrowings |
|
|
|
|
||
|
Lease liabilities |
|
|
|
2,449 |
|
2,579 |
|
|
|
|
|
|
|
|
|
|
|
|
|
2,449 |
|
2,579 |
|
|
|
|
|
|
|
|
|
Non-current interest-bearing loans and borrowings |
|
|
|
|
||
|
Lease liabilities |
|
|
|
4,122 |
|
4,979 |
|
Revolving credit facility - GBP |
SONIA + 1.5% |
4 Dec 2028 |
|
25,900 |
|
32,300 |
|
Revolving credit facility - Euro |
Euribor + 1.5% |
4 Dec 2028 |
|
24,783 |
|
13,097 |
|
Term loan |
Euribor + 1.5% |
4 Dec 2028 |
|
24,417 |
|
24,750 |
|
Unamortised loan costs |
|
|
|
(594) |
|
(715) |
|
|
|
|
|
|
|
|
|
|
|
|
|
78,628 |
|
74,411 |
|
|
|
|
|
|
|
|
|
Total interest-bearing loans and borrowings |
|
81,077 |
|
76,990 |
||
|
|
|
|
|
|
|
|
The Group has a £100 million loan facility jointly financed by National Westminster Bank plc and Barclays Bank plc. The facility consists of a £76.027 million revolving credit facility and a €28.346 million term loan facility.
During the year ended 31 December 2025, the £76.027 million revolving credit facility and the €28.346 million term loan facility were renewed. The renewed facility is for an initial three-year term until December 2028, with an extension option for two further years, and is provided by the two existing lenders.
The RCF and term loan facilities are secured on the assets of certain subsidiaries within the Group.
c) Changes in liabilities arising from financing activities
|
|
|
1 January 2026 (audited) |
Cash flows |
Non-cash changes |
30 June 2026 (unaudited) |
|
|
|
£'000 |
£'000 |
£'000 |
|
|
Liabilities from financing activities |
|
|
|
|
|
|
Revolving credit facility - GBP |
|
32,300 |
(6,400) |
- |
25,900 |
|
Revolving credit facility - Euro |
|
13,097 |
11,965 |
(279) |
24,783 |
|
Term loan |
|
24,750 |
- |
(333) |
24,417 |
|
Lease liabilities |
|
7,558 |
(1,351) |
364 |
6,571 |
|
|
|
77,705 |
4,214 |
(248) |
81,671 |
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
(18,978) |
1,090 |
312 |
(17,576) |
|
|
|
(18,978) |
1,090 |
312 |
(17,576) |
|
|
|
|
|
|
|
|
Net liabilities arising from financing activities |
|
58,727 |
5,304 |
64 |
64,095 |
|
|
|
|
|
|
|
The non-cash changes relate to foreign exchange differences and non-cash lease movement.
12 Contingent liabilities
Termo Teknik Ticaret ve Sanayi A.S. has issued letters of guarantee and letters of credit to its steel suppliers amounting to $513,000 (31 December 2025: $846,000) and $39,659,000 (31 December 2025: $36,444,000) respectively. Termo Teknik Ticaret ve Sanayi A.S. has also issued letters of guarantee denominated in Turkish Lira totalling TL31,076,000 (31 December 2025: TL28,993,000).
The Group enters into various forward currency contracts to manage the risk of foreign currency exposures on certain purchases and sales. The total amount of unsettled forward contracts as at 30 June 2026 is £17,363,000 (31 December 2025: £13,863,000) on purchases and £17,250,000 (31 December 2025: £23,750,000) on sales.
The fair value of the unsettled forward contracts held at the balance sheet date, determined by reference to their market values, is an asset of £522,000 (31 December 2025: liability of £221,000).
As part of the £100 million loan facility, renewed in December 2025, the Group is party to a cross-collateral agreement secured on specific assets of certain Group companies. No liability is expected to arise from the agreement.
Under an unlimited multilateral guarantee, the Company, in common with certain fellow subsidiary undertakings in the UK, has jointly and severally guaranteed the obligations falling due under the Company's net overdraft facilities. No liability is expected to arise from this arrangement.
13 Pensions and other post-employment plans
|
|
|
|
|
30 June 2026 (not audited) |
|
31 December 2025 (audited) |
|
|
|
|
|
£'000 |
|
£'000 |
|
Net employee defined benefit liability |
|
|
|
|
|
|
|
Turkish scheme |
|
|
|
3,956 |
|
3,977 |
|
Italian scheme |
|
|
|
563 |
|
605 |
|
Other retirement obligations |
|
|
|
43 |
|
43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
4,562 |
|
4,625 |
|
|
|
|
|
|
|
|
Turkish scheme
In Turkey there is an obligation to provide lump sum termination payments to certain employees; this represents 30 days' pay (subject to a cap imposed by the Turkish Government) for each year of service. The IAS 19 valuation gives a liability of £3,956,000 (31 December 2025: £3,977,000). There are no assets held in this plan (31 December 2025: nil).
Italian scheme
The Italian pension scheme, the Trattamento di Fine Rapporto, is a deferred compensation scheme established by Italian law. Employers are required to provide a benefit to employees when, for any reason, their employment is terminated. The IAS 19 valuation gives a net liability of £563,000 (31 December 2025: £605,000).
Other overseas retirement obligations
The Group operates a number of defined contribution pension schemes in its overseas entities and also has certain other retirement obligations.
UK scheme
The UK has one defined contribution pension scheme.
There were £35,000 outstanding contributions (31 December 2025: £69,000) due to the scheme at the balance sheet date.
IAS 19 accounting - Turkish and Italian schemes
Principal actuarial assumptions
|
|
|
Italian scheme |
|
Turkish scheme |
|
Italian scheme |
|
Turkish scheme |
|
|
|
30 June 2026 (not audited) |
|
30 June 2026 (not audited) |
|
31 December 2025 (audited) |
|
31 December 2025 (audited) |
|
|
|
|
|
|
|
|
|
|
|
Discount rate (per annum) |
|
3.4% |
|
29.6% |
|
3.4% |
|
29.6% |
|
Future salary increases (per annum) |
|
n/a |
|
24.6% |
|
n/a |
|
24.6% |
|
|
|
|
|
|
|
|
|
|
Quantitative sensitivity analysis
|
|
|
30 June 2026 (not audited) |
|
30 June 2026 (not audited) |
||||
|
|
|
Discount rate (per annum) |
|
Future salary increases (per annum) |
||||
|
|
|
+1% |
|
-1% |
|
+1% |
|
-1% |
|
|
|
£'000 |
|
£'000 |
|
£'000 |
|
£'000 |
|
|
|
|
|
|
|
|
|
|
|
(Decrease)/increase in defined benefit obligation - Turkish scheme |
|
(99) |
|
103 |
|
81 |
|
(83) |
The sensitivity analysis above has been determined based on a method that extrapolates the impact on the net defined benefit obligation as a result of reasonable changes in key assumptions at the end of the reporting period.
14 Related party disclosures
There are no related party transactions or changes to related party transactions since the last year end that could have a material effect on the Group's financial position or performance for the period.
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES AND GLOSSARY OF TERMS
The Group uses some alternative performance measures to monitor and assess the underlying performance of the business. These measures include adjusted operating profit and adjusted profit for the year. These measures are deemed useful as they aid comparability year-on-year. The use of alternative performance measures compared to statutory IFRS measures does give rise to limitations, including a lack of comparability across companies and the potential for them to present a more favourable view. Further, these measures are not a substitute for IFRS measures of profit. Alternative performance measures are defined in the glossary of terms below. Alternative performance measures are reconciled to the appropriate financial statements line item being disclosed.
Reconciliation of adjusted profit for the period and adjusted earnings per share
|
|
Six months ended 30 June 2026 £'000 |
Six months ended 30 June 2025 £'000 |
|
Profit/(loss) for the period |
8,658 |
(3,445) |
|
Adjusted for: |
|
|
|
Exceptional items |
1,028 |
12,001 |
|
Amortisation of customer relationships |
- |
68 |
|
Tax on exceptional items |
(226) |
(448) |
|
Tax on amortisation of customer relationships |
- |
(19) |
|
Adjusted profit for the period |
9,460 |
8,157 |
|
|
|
|
|
Basic weighted average number of shares in issue |
127,352,555 |
127,352,555 |
|
Diluted weighted average number of shares in issue |
127,427,841 |
129,438,265 |
|
Earnings/(loss) per share |
|
|
|
Basic earnings/(loss) per share (pence per share) |
6.80 |
(2.71) |
|
Diluted earnings/(loss) per share (pence per share) |
6.79 |
(2.66) |
|
Adjusted earnings per share |
|
|
|
Basic earnings per share (pence per share) |
7.43 |
6.41 |
|
Diluted earnings per share (pence per share) |
7.42 |
6.30 |
Reconciliation of adjusted operating profit and EBITDA
|
|
Six months ended 30 June 2026 £'000 |
Six months ended 30 June 2025 £'000 |
|
Operating profit |
15,670 |
3,844 |
|
Adjusted for: |
|
|
|
Exceptional items |
1,028 |
12,001 |
|
Amortisation of customer relationships |
- |
68 |
|
Adjusted operating profit |
16,698 |
15,913 |
|
Adjusted for: |
|
|
|
Depreciation |
5,658 |
5,776 |
|
Amortisation (excluding customer relationships) |
92 |
122 |
|
EBITDA |
22,448 |
21,811 |
Reconciliation of cash flow from operations, adjusted cash flow from operations and free cash flow
|
|
Six months ended 30 June 2026 £'000 |
Six months ended 30 June 2025 £'000 |
|
EBITDA (see reconciliation above) |
22,448 |
21,811 |
|
Adjusted for: |
|
|
|
Exceptional items |
(1,028) |
- |
|
Gain on disposal of property, plant and equipment |
(55) |
(71) |
|
Share-based payments - net of settled |
326 |
588 |
|
Working capital adjustments |
(11,019) |
(8,998) |
|
Net capital expenditure |
(3,502) |
(3,710) |
|
Cash flow from operations |
7,170 |
9,620 |
|
Income tax paid |
(5,457) |
(4,769) |
|
Interest paid - net |
(1,937) |
(3,035) |
|
Free cash flow |
(224) |
1,816 |
|
Cash flow from operations (see reconciliation above) |
7,170 |
9,620 |
|
Adjusted for |
|
|
|
Exceptional items |
1,028 |
- |
|
Exceptional items' impact on working capital |
(863) |
- |
|
Adjusted cash flow from operations |
7,335 |
9,620 |
Reconciliation of net debt and leverage before leases liabilities
|
|
Six months ended 30 June 2026 £'000 |
Six months ended 30 June 2025 £'000 |
|
Total interest-bearing loans and borrowings |
81,077 |
90,223 |
|
Cash and cash equivalents |
(17,576) |
(17,572) |
|
Adjusted for: |
|
|
|
Unamortised loan costs |
594 |
493 |
|
Lease liabilities |
(6,571) |
(8,329) |
|
Net debt before leases liabilities |
57,524 |
64,815 |
|
EBITDA - six months ended 30 June (see reconciliation above) |
22,448 |
21,811 |
|
EBITDA - half two prior year |
22,069 |
21,994 |
|
EBITDA - last twelve months |
44,517 |
43,805 |
|
Debt leverage ratio before leases liabilities |
1.29 |
1.48 |
Adjusted cash flow from operations: cash flow from operations before exceptional items and the impact of exceptional items on working capital.
Adjusted EPS: adjusted earnings per share is calculated on adjusted profit for the period divided by the weighted average number of shares in issue.
Adjusted operating profit: operating profit before exceptional items and amortisation of customer relationships.
Adjusted profit for the period: earnings before exceptional items, amortisation of customer relationships and tax thereon.
Business capital employed: the sum of property, plant and equipment, technology and software costs, trade and other receivables, inventories, other current financial assets, provisions, net employee defined benefit liabilities, trade and other payables and other current financial liabilities.
Cash flow from operations: EBITDA, less exceptional items, plus or minus movements in operating working capital, less share-based payment expense, less net investments in property, plant and equipment, less technology and software costs, less finance lease payments.
Cash flow from operations conversion: calculated by dividing cash flow from operations by adjusted operating profit.
Contribution: revenue from sale of the Group's products less any cost of direct materials, variable distribution costs, variable selling costs, direct labour costs and other variable costs.
Debt leverage ratio: calculated by dividing net debt by EBITDA.
Debt leverage ratio before lease liabilities: calculated by dividing net debt before lease liabilities by EBITDA.
EBITDA: profit before interest, taxation, depreciation, amortisation and exceptional items.
Free cash flow: cash flow from operations less tax paid less net interest paid.
Net debt: the sum of revolving credit facilities, term loan, lease liabilities net of cash.
Return on capital employed: adjusted operating profit as a percentage of business capital employed.
RMI: repair, maintenance and improvement activities.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
Latest directors dealings
- 9 hours ago Johnson Matthey
- 11 hours ago Galliford Try
- 11 hours ago Galliford Try
- 11 hours ago Centrica
- 11 hours ago Smith & Nephew