Interim Results

Stelrad Group PLC

07 August 2026

 

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	[phone]
Investec (Joint Corporate Broker) Ben Griffiths / Lydia Zychowska	[phone]
Singer Capital Markets (Joint Corporate Broker) Graham Hertrich / Sara Hale / James Todd	[phone]
Sodali & Co James White / Pete Lambie	[e-mail] [phone]

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.

 

END