Preliminary announcement of final results

Summary by AI BETAClose X

Stelrad Group plc reported a revenue of £279.6 million for the year ended 31 December 2025, a decrease of 3.8% from the previous year, attributed to economic uncertainty in core markets. Despite this, adjusted operating profit increased by 3.0% to £32.5 million, driven by margin management and strategic initiatives. The company incurred exceptional items of £14.9 million, primarily related to asset impairment and restructuring costs. Free cash flow significantly improved to £20.5 million, and net debt decreased by 14.3% to £51.2 million. The recommended final dividend is 5.05 pence per share, a 5% increase. The company anticipates subdued market demand to continue into the first half of 2026 but remains confident in its market position and strategic initiatives for future progress.

Disclaimer*

Stelrad Group PLC
13 March 2026
 

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Stelrad Group plc

("Stelrad" or the "Group")

Final results for the year ended

31 December 2025

 

Further progress in adjusted operating profit, optimised for growth

 

Stelrad Group plc ("Stelrad" or "the Group" or "the Company", LSE: SRAD), a leading specialist manufacturer and distributor of steel panel and other designer radiators in the UK, Europe and Turkey, today announces its audited financial results for the year ended 31 December 2025.

 

Results summary     

2025

2024

 

Movement %

 





Revenue, £m

279.6

290.6


(3.8)






Operating profit, £m

17.5

31.4


(44.3)

Operating profit margin, %

6.3

10.8


(4.5 ppts)

Profit for the year, £m

0.8

16.5


(94.9)

Earnings per share - basic, pence

0.66

12.97


(94.9)






Exceptional items, £m

(14.9)

-


n/a






Adjusted operating profit, £m (1)

32.5

31.5


3.0

Adjusted operating profit margin, % (1)

11.6

10.8


0.8 ppts

Adjusted profit for the year, £m (1)

16.7

16.6


0.2

Adjusted earnings per share - basic, pence (1)

13.08

13.05


0.2






Free cash flow, £m (1)

20.5

9.6


114.6

Return on capital employed, % (1)

30.1

27.1


3.0 ppts

Net debt before lease liabilities, £m (1)

51.2

59.7


(14.3)

Total dividend per share, pence

8.09

7.79


3.9






(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.

 

Further progress in adjusted operating profit

·      Adjusted operating profit of £32.5 million, an increase of 3.0% (2024: £31.5 million), driven by further margin management activities and strategic initiatives to drive favourable product mix.

·      Statutory operating profit of £17.5 million, after exceptional items of £14.9 million relating to a non-cash impairment charge on the assets of Radiators SpA and cost optimisation led restructuring activities in our Turkish and Danish facilities.

·      An eighth consecutive year of growth in contribution per radiator to £20.50 (2024: £20.15), demonstrating the Group's proven ability to continue to drive higher-margin sales mix and the cumulative benefits of operational efficiencies across the Group.

·      Continued economic uncertainty in core territories of UK & Ireland and Europe resulted in a 3.8% decline in revenue to £279.6 million, albeit at a lower rate of decline than the prior year (2024: (5.7%)).

o  UK & Ireland: revenue down 4.4% against a volume decline of 6.9%, with revenue supported by an increase in average size of radiators sold.

o  Europe: revenue down 3.9%, primarily as a result of softer demand in the French DIY market in quarter four.

o  Turkey & International: revenue increased 3.9% with an improvement in market conditions.

·      Return on capital employed grew by 3.0 ppts (2024: 1.6 ppts) to 30.1% reflecting higher adjusted operating profit and the impairment of Radiators SpA assets.

·      Significantly increased free cash flow of £20.5 million (2024: £9.6 million) driven by improved working capital control, disciplined capital expenditure and reduced interest costs.

·      Strong cash management, with leverage at 31 December 2025 improving to 1.16x (2024: 1.37x), based on net debt before lease liabilities.

·      In December 2025, the Group's £100 million loan facility was successfully renewed with our long-term banking partners, reducing the Group's future borrowing costs.

·      Recommended final dividend up 5% to 5.05 pence per share (2024: 4.81 pence per share), reflecting the Board's ongoing confidence in Stelrad's future prospects, the strength of the Group's balance sheet and cash conversion.

 

Optimised for growth

·      Significant operational improvements and commercial optimisation throughout the Group's flexible, low-cost manufacturing base.

o  Further margin enhancement expected as a result of exit from loss making contract in Radiators SpA and the full-year impact of 2025 restructuring activities.

·      Industry-leading customer service and product availability, with On Time In Full ("OTIF") delivery in the UK of 98% (2024: 98%), underpinning the Group's market share positions and ability to maximise opportunity from a market recovery.

·      Market leadership in six of Stelrad's ten core territories, with a top three position in three of the remaining four, provides the Group with a solid platform for future market share growth.

 

Driving structural trends of premiumisation and decarbonisation

·      Continued progress in strategies to drive adoption of higher-margin and value-added product ranges through leveraging Stelrad's trade strengths, optimising distribution channels and boosting Stelrad's consumer appeal delivered a record level of 6.4% premium steel panel mix of total steel panel volume.

·      In the UK market, the Group's strategic initiatives to promote high output conventional radiators, develop hybrid products for low temperature systems and introduce electric ranges into core markets have driven 33% annual growth in these products since 2022, positioning Stelrad effectively for decarbonisation.

 

Current trading and outlook

·      The Board is confident in Stelrad making further progress in the current financial year, underpinned by the Group's competitive advantages, leading market share positions and strategic initiatives.

·      Trading in the early months of the financial year has been in line with management expectations.  The Group's end markets are stable, but market demand remains subdued, and we expect this to continue for at least the first half of 2026. In the meantime, the Group continues to leverage operational opportunities to optimise future growth and profitability.

·      Whilst there remains a level of uncertainty around the timing of a wider market recovery, we remain confident in the attractiveness of our markets, underpinned by long-term structural growth drivers, and the opportunities that a market recovery presents for a stronger, simpler Stelrad.

 

Commenting on the Group's performance, Trevor Harvey, Chief Executive Officer, said:

"2025 demonstrated once again our ability to deliver adjusted operating profit growth through the market cycle while continuously improving our operations and positioning as we optimise our business for further progress. There remains a level of uncertainty around the timing of a wider market recovery, however, we remain confident in the opportunities that a market recovery offers for a stronger, simplified and more operationally efficient Stelrad.

 

 

"Our leadership positioning across the range of markets where we operate provides us with a platform from which to build and positions the Group well to continue to drive the adoption of higher-margin, value-added products, including increasing the penetration of premium panel and higher heat output ranges in key markets.

 

"The Board remains confident in delivering further progress during 2026. Our operational excellence initiatives, underpinned by our competitive advantages and market positioning, mean that Stelrad remains well-placed to outperform its peers in the near term and benefit from any medium-term market recovery."

 

For further information:

 

Stelrad Group plc

Trevor Harvey, Chief Executive Officer

Leigh Wilcox, Chief Financial Officer

+44 (0)191 261 3301

 

Sodali & Co

James White / Pete Lambie

 

stelrad@sodali.com

+44 (0)7855 432 699

 

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 core brands: Stelrad, Henrad, Termo Teknik, DL Radiators and Hudevad.  In the data reported by BRG Building Solutions for 2024, Stelrad extended its market leadership position, with 24.2% share by volume of the European steel panel radiator market, excluding Russia and Belarus.  The Group is now market leader in six countries - the UK, France, Belgium, the Netherlands, Ireland and Denmark, with a top three position in a further 12 territories. 

 

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/.

 

Chair's statement

 

Overview

Stelrad has consistently delivered a strong underlying financial performance against a challenging macroeconomic backdrop in recent years and 2025 marked the third consecutive year of progress in adjusted operating profit performance.

 

Our core geographies of the UK and Europe continue to be impacted by the ongoing effects of high interest rates and inflation suppressing activity in both RMI and new build markets.  However, Stelrad's ability to deliver further progress despite these ongoing challenges clearly demonstrates the inherent strengths of our business with the Group's flexible, low-cost manufacturing footprint, leading levels of customer service and unrivalled product availability underpinning our leading competitive position in the market.

 

While these competitive strengths are ingrained within the business, our highly experienced Executive and Senior Management teams further strengthened and simplified our operations over the last year. As a result, we have positioned the Group to fully capitalise on opportunities within an inherently attractive market, with a stronger, simpler and more operationally efficient Stelrad primed for growth.

 

Performance and results

The Group delivered another successive improvement in adjusted operating profit, increasing by 3.0% to £32.5 million (2024: £31.5 million), with an adjusted operating profit margin of 11.6% (2024: 10.8%) despite a decline in revenue to £279.6 million (2024: £290.6 million), making strong progress towards our medium-term targets. Statutory operating profit was £17.5 million (2024: £31.4 million), with the statutory result stated after exceptional items totalling £14.9 million, which are linked to non-cash impairment charges and restructuring initiatives undertaken in the year.

 

This strong performance was the result of clear actions by our highly experienced management team, driving an enhanced product mix combined with tight cost control across our manufacturing sites. As a result, our key contribution per radiator KPI increased for the eighth successive year to £20.50 (2024: £20.15), nearing our medium-term target of £21.

 

Purpose

Stelrad's purpose is helping to heat homes sustainably. Given Stelrad's influential market position with system specifiers, suppliers and customers, we have a pivotal role to play in the transition to decarbonised heating systems. We continue to develop our product range in this area, ensuring that we can both capture market share arising from legislative tailwinds and drive the wider transition to low carbon systems.

 

Environmental, social and governance ("ESG") objectives

Achieving our purpose, helping to heat homes sustainably, demands relentless focus on reducing Stelrad's own environmental impact, a consistently high level of employee engagement and high standards of corporate governance. 

 

These elements are at the heart of Stelrad's culture and values.

 

Our sustainability framework, Fit for the Future, is consistent with that core purpose, setting out our approach to delivering both our business strategy and our sustainability commitments to stakeholders and the environment.

 

We continued to make significant progress with initiatives to reduce the Group's carbon footprint in the year, reducing our energy consumption by 2.3%, along with a 5.6% reduction in our Scope 1 and 2 emissions.

 

We also achieved further progress embedding safety across all of our manufacturing sites, with a substantial reduction in lost time incidents at our Çorlu facility, and several sites recording zero lost time incidents during the year. 

 

Board

In February 2026, Martin Payne, Non-Executive Director and Chair of the Audit & Risk Committee, notified the Board that he will not be standing for re-election and will retire from the Board at the 2026 AGM. Martin has been a valued member of the Board since the Company's IPO in October 2021. On behalf of the Board, I would like to thank Martin for the contribution that he has made to the Company over the past four and a half years, and we wish him well for the future. A process is underway to identify a replacement Non-Executive Director and Chair of the Audit and Risk Committee.

 

Dividend

The Board is recommending a final dividend of 5.05 pence per share, a rise of 5% on the prior year, reflective of our ongoing confidence in Stelrad's future prospects and the strength of the Group's balance sheet. The final dividend will be paid on 26 May 2026 to shareholders on the register on 24 April 2026, subject to approval by shareholders at the Annual General Meeting on 20 May 2026.

 

Summary

While there remains a level of uncertainty around the timing of a market recovery, the work of our highly experienced management team over the last three years in executing our strategy has positioned Stelrad incredibly well to deliver continued progress through the cycle, underpinned by our competitive advantages. 

 

Bob Ellis

Chair

13 March 2026

 

Chief Executive Officer's review

 

Continued progress through the market cycle

During 2025, Stelrad continued to demonstrate and enhance our operational excellence, underpinned by our core competitive advantages of:

 

1. a flexible, low-cost manufacturing footprint;

2. outstanding customer service; and

3. unmatched product availability.

 

These competitive advantages allowed us to continue to deliver growth in adjusted operating profits and margins, despite the subdued market environment. This was achieved through a combination of our strategy to drive product mix towards higher specification products and an ongoing focus on cost controls within our operations. Statutory operating profit fell in the year to £17.5 million (2024: £31.4 million) due to exceptional items totalling £14.9 million incurred in the year, the existence of which help position the Group strongly for the future.

 

Reflecting the well documented market conditions in the UK and our core European territories, volumes declined by 4% year on year, albeit with a small improvement in volumes during the second half and encouraging progress in a number of key markets.

 

As a result, revenues during the year declined 3.8% to £279.6 million, a decrease of £11.0 million on the prior year (2024: £290.6 million), primarily driven by revenue declines in the UK & Ireland (4.4% decrease) and Europe (3.9% decrease), with an increase in revenues from our smaller operations in Turkey & International (3.9%).

 

While persisting market headwinds remain frustrating, our performance over the year further underlined Stelrad's ability to continue to deliver against our strategy through the market cycle.

 

In the last three years we have driven operational excellence within both our manufacturing sites and distribution networks. This is clearly demonstrated by the progress in our contribution per radiator KPI, increasing for the eighth successive year to £20.50, an increase of £0.35 on the prior year.

 

As a stronger, simpler Stelrad, enabled by our competitive advantages and operational excellence, we continue to ensure that our business is well placed to capture the opportunities posed by a market recovery and actively deliver against our four key strategic priorities of:

 

1. growing market share;

2. improving product mix;

3. optimising our routes to market; and

4. positioning effectively for decarbonisation.

 

Market leadership provides a platform for growth

As we have emphasised previously, our highest priority as a management team is to ensure that Stelrad is well placed to take advantage of a market recovery when it materialises.

 

Key to this is maintaining both our market leadership and the operational capabilities that underpin it, including our customer service and product availability. The Group remains an industry leader when it comes to both of these capabilities, with On Time In Full deliveries in the UK of 98% (2024: 98%).

 

As the clear leader of the European steel panel radiator market, with 24.2% share in 2024 (source: BRG Building Solutions, excluding Russia and Belarus), our competitive advantages underpin our market leadership in six of Stelrad's ten core territories, with a top three position in three of the remaining four. This provides the Group with a solid platform for future targeted, profitable market share growth and positions us as a key beneficiary of a market recovery.

 

Country

2024 Market volume

('000 units)

2024 Stelrad share

Market position

UK

4,661

52.1%

1

Turkey

4,180

7.3%

4

Germany

1,880

17.5%

3

France

1,250

33.1%

1

Poland

1,172

10.8%

2

Sweden

500

15.4%

3

Belgium

395

43.1%

1

Netherlands

350

49.2%

1

Ireland

255

39.4%

1

Denmark

210

49.8%

1

Ten core markets

14,853

28.5%

1

Others

3,360

5.5%


Total

18,213

24.2%

1

 

Strategic initiatives enable above-market growth through product mix

Market leadership also means we are well positioned to both drive and benefit from long-term structural trends of premiumisation and decarbonisation within our markets. Both of these trends will underpin future demand for higher-margin, higher added-value products, enabling both above-market growth and further margin progression.

 

Premiumisation, the increased customer demand for premium steel panel and designer radiators, remains a key trend and opportunity in our industry, particularly in core territories such as the UK where premium steel panel penetration is currently low.

 

Although the total volume of premium panel radiators decreased by 1.6% to 271k units sold (2024: 276k), reflecting ongoing economic uncertainty, this was at a rate lower than the decline in overall volume.

 

As a result, in 2025, continued progress in our three-pillar strategy to drive adoption of higher-margin and value-added product ranges though leveraging Stelrad's trade strengths, optimising distribution channels and boosting Stelrad's consumer appeal, delivered a record level of 6.4% premium steel panel mix of total steel panel volume.    

 

Heating system decarbonisation remains a structural tailwind for us, particularly following the implementation of Part L of the UK building regulations. Reflecting this, and for a third consecutive year, in 2025 there was a further increase in the heat output of the UK average radiator size sold, up 1.5% versus 2024.

 

The Group has a clear, three-pillar strategy for decarbonisation growth, which consists of promoting and developing our range of high-output conventional radiators, developing hybrid heat emitters and introducing electric radiators into core markets.

 

In the UK since 2022, Stelrad's combined sales of high-output conventional and electric radiators have increased by 33% per annum and, at the beginning of 2026, the Group launched our ThermoBreeze hybrid heat emitter into mainland European markets.

 

Embedded operational excellence driving continued progress

In tandem with our strategic initiatives, embedding operational and commercial excellence has been a key driver of earnings growth throughout the current market cycle. Over the last three years, we have embedded an array of cost initiatives across all of the Group's sites, positioning us to benefit from a market recovery and the ensuing increase in volumes with a minimal increase in the Group's fixed cost base.

 

Prior to the year end, and following the earlier restructuring of our Turkish operations, we restructured our Danish business to further enhance future operational margins in 2026 and beyond, while maintaining our flexible, low-cost manufacturing capability and capacity within these operations.

 

As detailed in the Group's interim results in August 2025, we took significant steps to restructure our European operations, particularly in Radiators SpA. This included the decision to terminate all supply under a loss-making contract for steel panel radiators. The exit from this contract has been margin-enhancing at a Group level in the first months of 2026.

 

We continue to work to reposition the focus of the Radiators SpA business on electrical and designer products - the key ranges that underpinned the strategic rationale for our acquisition in 2022, with Radiators SpA continuing to provide increased access to new channels to markets, particularly in European territories.

 

These proactive margin management and cost reduction activities across our manufacturing sites, alongside our strategic initiatives to drive a more favourable product mix, resulted in an adjusted operating profit for the year of £32.5 million, an increase of 3.0% or £1.0 million (2024: £31.5 million). With the resulting exceptional items totalling £14.9 million, including non-cash impairment charges of £12.6 million, statutory operating profit reduced to £17.5 million (2024: £31.4 million).

 

We continue to assess opportunities to improve the Group's competitive position and operational efficiency.

 

Outlook

The Board is confident in Stelrad making further progress in the current financial year, underpinned by the Group's competitive advantages, leading market share positions and strategic initiatives.

Trading in the early months of the financial year has been in line with management expectations. The Group's end markets are stable, but market demand remains subdued, and we expect this to continue for at least the first half of 2026. In the meantime, the Group continues to leverage operational opportunities to optimise future growth and profitability.

 

Whilst there remains a level of uncertainty around the timing of a wider market recovery, we remain confident in the attractiveness of our markets, underpinned by long-term structural growth drivers, and the opportunities that a market recovery present for a stronger, simpler Stelrad.

 

Our leadership across the range of markets where we operate positions the Group well to continue to drive the adoption of higher-margin, value-added products, including premium steel panel radiators and the higher heat output, hybrid and electric radiators particularly suitable for low and zero carbon heating systems.

 

Moreover, the Group's market leadership in Europe, low-cost manufacturing footprint and outstanding customer proposition are expected to provide opportunities for further market share gains, enabling Stelrad to maximise its exposure to future growth across end markets.

 

Trevor Harvey

Chief Executive Officer

13 March 2026

 

Finance and business review

 

The Group has delivered another year of adjusted operating profit growth driven by proactive margin management initiatives and cost reduction activities across our manufacturing sites.

 

Group overview

The following table summarises the Group's results for the years ended 31 December 2025 and 31 December 2024.

 

2025

2024

Movement

Movement


£m

£m

£m

%

Revenue

279.6

290.6

(11.0)

(3.8)

EBITDA(1)

44.1

43.5

0.6

1.3

Adjusted operating profit(1)

32.5

31.5

1.0

3.0

Exceptional items

(14.9)

-

(14.9)

n/a

Amortisation of customer relationships

(0.1)

(0.1)

-

49.6

Operating profit

17.5

31.4

(13.9)

(44.3)

Net finance costs

(7.4)

(8.0)

0.6

7.5

Profit before tax

10.1

23.4

(13.3)

(56.9)

Income tax expense

(9.3)

(6.9)

(2.4)

(34.5)

Profit for the year

0.8

16.5

(15.7)

(94.9)

Earnings per share - basic (p)

0.66

12.97

(12.31)

(94.9)

Adjusted profit for the year(1)

16.7

16.6

0.1

0.2

Adjusted earnings per share - basic (p)(1)

13.08

13.05

0.03

0.2

Total dividend per share (p)

8.09

7.79

0.30

3.9

 

 




Return on capital employed (%)(1)

30.1

27.1

n/a

3.0 ppts

Net debt before lease liabilities(1)

51.2

59.7

(8.5)

(14.3)

(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 Group delivered another year of adjusted operating profit growth, despite the ongoing suppression of volumes across Stelrad's core UK and European markets. The resilient adjusted operating performance has been driven by the implementation of proactive margin management initiatives, cost reduction activities and structural currency gains, which have allowed the Group to offset the impact of a continued reduction in demand during 2025.

 

Revenue for the year was £279.6 million, a decrease of £11.0 million, or 3.8%, on last year (2024: £290.6 million). The decline in revenue was due to a 4.3% decrease in sales volumes during the year, partially offset by selling price benefits and product mix improvements. Selling prices have benefited from a third successive annual increase in average radiator size in the UK and the impact of price increases. Promisingly, there was a small improvement in volumes in the second half versus the first half, and year on year there was progress in a number of key markets.

 

Adjusted operating profit for the year was £32.5 million, an increase of £1.0 million, or 3.0%, compared to last year (2024: £31.5 million). Adjusted operating profit increased despite lower sales volumes, as a result of proactive margin management and cost reduction activities across our manufacturing sites, enhanced product mix, strong fixed cost control and structural currency benefits. The structural currency benefits arise from the way the Group has structured its Turkish operations, with the gain being a result of the year-to-date devaluation of the Turkish Lira against the Euro which will continue to benefit the cost base of our Turkish operations in the future.

 

Operating profit for the year was £17.5 million, a decrease of £13.9 million, or 44.3%, compared to last year (2024: £31.4 million). Operating profit is stated after the deduction of exceptional items of £14.9 million (2024: £nil), of which £12.6 million relates to non-cash items, and the amortisation of customer relationships of £0.1 million (2024: £0.1 million).

 

Despite a challenging market environment, proactive management actions have meant that contribution per radiator has increased to £20.50 (2024: £20.15), providing the Group with very strong operating leverage that will drive considerable profitability improvements when volumes recover. The Group continues to focus on the sale of premium, higher added-value 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 volume increased by 0.1 ppts to 6.4% with further progress expected as the economic environment improves.

 

The statutory profit for the year was £0.8 million (2024: £16.5 million) due to exceptional items of £14.9 million (2024: £nil), of which £12.6 million relates to non-cash items. Adjusted profit for the year increased by £0.1 million, or 0.2%, to £16.7 million (2024: £16.6 million). Interest charges reduced by £0.6 million year on year, despite one-off amortisation charges, as interest rates continue to fall. Tax charges increased year on year due to a 5% increase in the withholding tax charges applied to dividends received from Turkey during 2025, the country mix of profits and the one-off derecognition of some tax losses.

 

Earnings per share was 0.66 pence (2024: 12.97 pence). Adjusted earnings per share was 13.08 pence (2024: 13.05 pence).

 

At 31 December 2025 the Group had cash of £19.0 million (2024: £18.6 million) and undrawn available facilities of £30.6 million (2024: £21.1 million), with net debt before lease liabilities of £51.1 million (2024: £59.7 million).

 

Selective investments in working capital have been made in the year to enhance customer relationships in the UK market, offset by more beneficial payment terms due to a change of steel suppliers.

 

The Group has made pleasing progress towards its medium-term targets in the year, despite challenging market conditions, with growth in contribution per radiator, adjusted operating profit margins, operating cash flow conversion and return on capital employed. The Board remains confident in the ability for the Group to achieve all medium-term targets.

 

Revenue by geographical market

The table below sets out the Group's revenue by geographical market.

 

 

UK & Ireland

The Group's revenue in UK & Ireland for the year was £131.3 million (2024: £137.4 million), a decrease of £6.1 million, or 4.4%. This was principally a result of a decrease in sales volumes of 6.9%, partially offset by a continued increase in the average size of radiators sold, with a 1.5% year on year higher output, though the penetration of premium panel products sold was impacted by low UK consumer confidence.

 

Europe

The Group's revenue in Europe for the year was £133.5 million (2024: £139.0 million), a decrease of £5.5 million, or 3.9%. Revenue has been negatively impacted by a 3.4% decline in sales volumes, with volumes affected by weak demand in the French DIY market in quarter four.

 

Turkey & International

The Group's revenue in Turkey & International for the year was £14.8 million (2024: £14.2 million), an increase of £0.6 million, or 3.9%. This was principally a result of higher volumes sold in Turkey due to an improvement in market conditions.

 

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

2025

2024

Movement

Movement

£m

£m

£m

%

UK & Ireland

30.0

29.6

0.4

1.4

Europe

7.3

7.9

(0.6)

(7.6)

Turkey & International

1.2

1.0

0.2

13.5

Central costs

(6.0)

(7.0)

1.0

14.3

Total

32.5

31.5

1.0

3.0

 

UK & Ireland

The Group's adjusted operating profit in UK & Ireland for the year was £30.0 million (2024: £29.6 million), an increase of £0.4 million, or 1.4%. The result includes the benefit of favourable material prices and the increase in the average size of radiators sold offset by lower sales volumes.

 

Europe

The Group's adjusted operating profit in Europe for the year was £7.3 million (2024: £7.9 million), a decrease of £0.6 million, or 7.6%. A high fixed cost base in Europe, combined with the sales volume decrease, has led to a reduction in operating margin percentage in recent years. We expect margins for the Europe segment to recover in line with market recovery as variable profit margins remain strong.

 

The Group will continue to focus on improving the margins of Radiators SpA's sales, with the exit from a significant loss-making contract at the end of 2025 providing renewed opportunity to focus business efforts on the product ranges which are unique to Radiators SpA.

 

Turkey & International

The Group's adjusted operating profit in Turkey & International for the year was £1.2 million (2024: £1.0 million), an increase of £0.2 million, or 13.5%. Turkish operating margins have benefited from the operational efficiencies arising from the restructuring of our Turkish business in the second half of 2025.

 

Central costs

Central costs for the year were £6.0 million (2024: £7.0 million), a decrease of £1.0 million, or 14.3%. The reduction is due to the removal of one-off costs from the prior year, supported by strong cost control year on year.

 

Exceptional items

During the year, the charge for exceptional items was £14.9 million (2024: £nil), of which £12.6 million relate to non-cash items and £2.3 million relate to cash items.

 

The main elements of the non-cash exceptional items relate to impairment of goodwill of £2.7 million, impairment of customer relationships of £1.4 million, impairment of property, plant and equipment of £5.8 million and a provision against inventories of £2.3 million, all within the Radiators SpA business.

 

The Radiators SpA business has been exposed to declining market volumes in France and Germany since its acquisition in July 2022, resulting in deteriorating operating margins despite active fixed cost management. Since the acquisition, the business has been impacted by a significantly low margin, and latterly a loss-making contract, for the supply of steel panel radiators which has contributed to suppressed European operating margins.

 

Negotiations during the year to reset the price on this contract have been unsuccessful and, in line with the Group's focus on commercial discipline, decisive action has been taken to terminate all supply under this contract, effective at the end of 2025. Whilst the exit from this loss-making contract will negatively impact future revenue and volumes, it will result in improved contribution and the opportunity to reduce fixed costs in the short term. The exit from the contract presents an increased opportunity to focus attention on the electrical and designer product ranges which are unique to this division and were the key strategic rationale for acquiring the business. The refocused business will be underpinned by a rationalised product profile that will provide greater operational efficiency.

 

Additionally, restructuring costs of £2.7 million have been incurred or provided for as a result of significant proactive margin management initiatives and cost reduction activities across our sites in Turkey, Italy and Denmark. Of these, £2.3 million relate to cash items and £0.4 million relate to non-cash items.

 

These costs are one-off in nature and disclosing these costs as exceptional allows the true underlying performance of the Group to be better understood.

 

Finance costs

The Group's net finance costs for the year were £7.4 million (2024: £8.0 million). The decrease of £0.6 million is due to a decrease in the interest rate of the Group's debt from a blended rate of 6.6% during 2024 to a blended rate of 5.3% during 2025, partially offset by the one-off loan fee amortisation on the pre-existing loan facility of £0.3 million upon refinancing.

 

The refinancing of the Group's £100 million loan facility, which completed in December 2025, reduces the Group's future loan margin. The refinanced loan is for an initial period of three years up to December 2028 and includes a two-year extension option.

 

Income tax expense

The Group's income tax expense for the year was £9.3 million (2024: £6.9 million), an increase of £2.4 million, or 34.5%, which includes the derecognition of tax losses in Radiators SpA, connected to the impairment recognised in the year. In 2024, the effective tax rate was 29.4%. In 2025, the Group's adjusted effective tax rate has risen to 34.4% due to a 5% increase in the withholding tax charges applied to dividends received from Turkey during 2025 and the country mix of profits.

 

Earnings per share and adjusted earnings per share

Profit for the year reduced to £0.8 million (2024: £16.5 million) and basic earnings per share was 0.66 pence (2024: 12.97 pence) due to the impact of the exceptional items and one-off refinancing costs, including exceptional tax, of £15.8 million in the year (2024: £nil). The weighted average number of shares was 127.4 million (2024: 127.4 million).

 

Adjusted profit for the year increased by £0.1 million, or 0.2%, to £16.7 million (2024: £16.6 million) and, consequently, basic adjusted earnings per share was 13.08 pence (2024: 13.05 pence).

 

Dividends and reserves

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, as demonstrated by the Group's medium-term targets published at our Capital Markets Event in November 2024. On this basis, despite suppressed earnings caused by short-term trading headwinds, the Board recommends payment of a final dividend of 5.05 pence per share (2024: 4.81 pence per share) on 26 May 2026 to shareholders on the register at 24 April 2026, an increase of 5% on the 2024 final dividend. The cost to the Group of the 2025 final dividend is £6.4 million (2024: £6.1 million).

 

The Group paid an interim dividend in respect of the year ended 31 December 2025 of 3.04 pence per share (2024: 2.98 pence), an increase of 2% on the 2024 interim dividend. Therefore, the total dividend in respect of the year ended 31 December 2025 will be 8.09 pence per share (2024: 7.79 pence), an increase of 3.9% on 2024.

 

Cash flow

The following table summarises the Group's cash flow for the years ended 31 December 2025 and 31 December 2024.

 

2025

2024

Movement


£m

£m

£m

EBITDA(1)

44.1

43.5

0.6

Exceptional items - cash items

(2.3)

-

(2.3)

Gain on disposal of property, plant and equipment

(0.1)

(0.1)

-

Share-based payment charge

0.7

0.4

0.3

Working capital

(0.8)

(10.1)

9.3

Working capital - exceptional items

0.3

(2.3)

2.6

Net capital expenditure

(7.7)

(8.4)

0.7

Cash flow from operations(1)

34.2

23.0

11.2

Income tax paid

(8.0)

(6.2)

(1.8)

Net interest paid

(5.7)

(7.2)

1.5

Free cash flow(1)

20.5

9.6

10.9

 

 



Cash flow from operations

34.2

23.0

11.2

Adjusted for

 



Exceptional items - cash items

2.3

-

2.3

Exceptional items impact on working capital

(0.3)

2.3

(2.6)

Adjusted cash flow from operations(1)

36.2

25.3

10.9

 

2025

2024

Movement

Cash flow from operations(1) (£m)

34.2

23.0

11.2

Adjusted cash flow from operations(1) (£m)

36.2

25.3

10.9


 



Adjusted operating profit(1) (£m)

32.5

31.5

1.0


 



Cash flow from operations conversion(1) (%)

105.4

73.0

32.4 ppts

Adjusted cash flow from operations conversion(1) (%)

111.4

80.3

31.1 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 flow for the year was £20.5 million (2024: £9.6 million), an increase of £10.9 million. This reflects improved working capital control, reduced capital expenditure and reduced interest paid year on year, partially offset by increased income tax paid. Selective investments in working capital have been made in the year to enhance customer relationships in the UK market; however, these have been offset by more beneficial payment terms due to a change in steel suppliers. Interest payments have reduced year on year due to reductions in interest rates. Capital expenditure has been reduced due to a planned UK IT infrastructure project that has been deferred until 2026. The increase in income tax paid is impacted by the Group's UK business becoming cash tax paying in the year, after fully utilising its historical tax losses.

 

The Group's cash flow from operations for the year was £34.2 million (2024: £23.0 million), an increase of £11.2 million. Adjusted operating profit for the year was £32.5 million (2024: £31.5 million), an increase of £1.0 million. Cash flow from operations conversion for the year was 105.4% (2024: 73.0%), an increase of 32.4 ppts. Adjusted cash flow from operations conversion for the year was 111.4% (2024: 80.3%), an increase of 31.1 ppts.

 

Capital expenditure

The Group's capital expenditure mainly relates to investment in operating plant and equipment. Key capital expenditure in the year ended 31 December 2025 related to various maintenance and upgrade projects, including a successfully completed IT infrastructure upgrade in our Turkish business. Capital expenditure for 2026 will continue to focus on ensuring our operating platform is well maintained whilst making a periodic investment in our IT infrastructure.

 

Return on capital employed and capital allocation priorities

Return on capital employed for the year was 30.1% (2024: 27.1%), an increase of 3.0 ppts. This improvement is due to an increase in adjusted operating profit and an impairment of assets.

 

Capital allocation considerations remain high on the Group's agenda, and investment in working capital is 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, alongside investment in organic growth, dividends have progressively increased, whilst the Group's debt leverage ratio before lease liabilities has improved to 1.16x (2024: 1.37x), demonstrating a controlled and balanced approach to capital allocation and balance sheet prudence given the challenging macroeconomic environment.

 

Net debt and leverage

At 31 December 2025, net debt (including lease liabilities) of £58.7 million (2024: £67.6 million) comprises £70.1 million (2024: £78.3 million) drawn down against the multicurrency facility and £7.6 million (2024: £7.9 million) lease liabilities net of £19.0 million (2024: £18.6 million) cash.

 

2025

2024


£m

£m

Revolving credit facility - GBP

32.3

41.8

Revolving credit facility - Euro

13.1

13.1

Term loan

24.7

23.4

Cash

(19.0)

(18.6)

Net debt before lease liabilities

51.1

59.7

Lease liabilities

7.6

7.9

Net debt

58.7

67.6

 

 


EBITDA

44.1

43.5

Debt leverage ratio before lease liabilities

1.16x

1.37x

 

The debt leverage ratio before lease liabilities at 31 December 2025 was 1.16x (2024: 1.37x).

 

Leigh Wilcox

Chief Financial Officer

13 March 2026

 

Consolidated income statement

for the year ended 31 December 2025

 

Note

2025

£'000

2024

£'000


Continuing operations





Revenue

3

279,598

290,577


Cost of sales

 

(193,327)

(201,617)


Gross profit


86,271

88,960


Selling and distribution expenses


(40,588)

(41,729)


Administrative expenses


(16,282)

(17,165)


Other operating income/(expenses)

4

3,001

1,319


Exceptional items

5

(14,925)

-


Operating profit


17,477

31,385


Finance income


173

186


Finance costs

6

(7,576)

(8,189)


Profit before tax


10,074

23,382


Income tax expense

7

(9,230)

(6,864)


Profit for the year

 

844

16,518

 

 

 

Note

2025

2024


Earnings per share





Basic

8

0.66p

12.97p


Diluted

8

0.66p

12.87p

 

Consolidated statement of comprehensive income

for the year ended 31 December 2025

 

Note

2025

£'000

2024

£'000

Profit for the year


844

16,518

Other comprehensive income/(expense)




Other comprehensive income/(expense) that may be reclassified

to profit or loss in subsequent periods:




Net (loss)/gain on monetary items forming part of net investment in foreign operations and qualifying hedges of net investments in foreign operations


(916)

867

Income tax effect

7

229

(217)

Exchange differences on translation of foreign operations

 

5,009

(4,711)

Net other comprehensive income/(expense) that may be reclassified

to profit or loss in subsequent periods


4,322

(4,061)

Other comprehensive (expense)/income not to be reclassified

to profit or loss in subsequent periods:




Remeasurement losses on defined benefit plans


(113)

(925)

Income tax effect

7

28

232

Net other comprehensive expense not to be reclassified

to profit or loss in subsequent periods


(85)

(693)

Other comprehensive income/(expense) for the year, net of tax

 

4,237

(4,754)

Total comprehensive income for the year,

net of tax attributable to owners of the parent

 

5,081

11,764

 

Consolidated balance sheet

as at 31 December 2025    

 

Note

2025

£'000

2024

£'000

Assets




Non-current assets




Property, plant and equipment

10

72,491

79,173

Intangible assets

11

347

4,652

Trade and other receivables

14

299

284

Deferred tax assets

7

4,836

4,821



77,973

88,930

Current assets




Inventories

13

62,402

67,311

Trade and other receivables

14

47,164

45,478

Income tax receivable


348

235

Financial assets


-

293

Cash and cash equivalents

15

18,978

18,633

 

 

128,892

131,950

Total assets

 

206,865

220,880

Equity and liabilities




Equity




Share capital

18

127

127

Merger reserve


(114,469)

(114,469)

Retained earnings


231,253

239,788

Foreign currency reserve

 

(63,531)

(67,853)

Total equity


53,380

57,593

Non-current liabilities




Interest-bearing loans and borrowings

12

74,411

83,329

Deferred tax liabilities

7

222

209

Provisions

17

1,832

1,910

Net employee defined benefit liabilities

 

4,625

5,118



81,090

90,566

Current liabilities




Trade and other payables

16

67,058

69,210

Financial liabilities

12

221

-

Interest-bearing loans and borrowings

12

2,579

2,212

Income tax payable


1,466

550

Provisions

17

1,071

749

 

 

72,395

72,721

Total liabilities

 

153,485

163,287

Total equity and liabilities

 

206,865

220,880

 

Consolidated statement of changes in equity

for the year ended 31 December 2025

Attributable to the owners of the parent

 

Issued share

 capital

£'000

Merger

reserve

£'000

Retained

earnings

£'000

Foreign

currency

£'000

Total

£'000

At 1 January 2024

127

(114,469)

233,329

(63,792)

55,195

Profit for the year

-

-

16,518

-

16,518

Other comprehensive expense for the year

-

-

(693)

(4,061)

(4,754)

Total comprehensive income/(expense)

-

-

15,825

(4,061)

11,764

Share-based payment charge

-

-

440

-

440

Dividends paid (note 9)

-

-

(9,806)

-

(9,806)

At 31 December 2024

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

-

-

759

4,322

5,081

Share-based payment charge

-

-

704

-

704

Dividends paid (note 9)

-

-

(9,998)

-

(9,998)

At 31 December 2025

127

(114,469)

231,253

(63,531)

53,380

 

Consolidated statement of cash flows

for the year ended 31 December 2025

 

Note

2025

£'000

2024

£'000

Operating activities




Profit before tax


10,074

23,382

Adjustments to reconcile profit before tax to net cash flows:




- Depreciation of property, plant and equipment

10

11,393

11,692

- Amortisation of intangible assets

11

330

468

- Gain on disposal of property, plant and equipment


(80)

(118)

- Share-based payments charge


704

440

- Exceptional items - non-cash elements


12,663

-

- Finance income


(173)

(186)

- Finance costs

6

7,576

8,189

Working capital adjustments:




- Decrease in trade and other receivables


517

3,885

- Decrease/(increase) in inventories


4,690

(6,143)

- Decrease in trade and other payables


(4,430)

(6,743)

- Increase/(decrease) in provisions


94

(2,176)

- Movement in other financial assets/liabilities


531

(610)

- Decrease in other pension provisions


(1)

(7)

- Difference between pension charge and cash contributions

 

(1,921)

(581)



41,967

31,492

Income tax paid


(8,000)

(6,265)

Interest received

 

173

186

Net cash flows generated from operating activities


34,140

25,413

Investing activities




Proceeds from sale of property, plant, equipment and intangible assets


185

341

Purchase of property, plant and equipment

10

(5,215)

(5,861)

Purchase of intangible assets

11

(35)

(100)

Net cash flows used in investing activities


(5,065)

(5,620)

Financing activities




Transaction costs related to refinancing


(733)

-

Proceeds from external borrowings


-

3,388

Repayment of external borrowings


(10,219)

(5,150)

Payment of lease liabilities


(2,662)

(2,865)

Interest paid


(5,905)

(7,372)

Dividends paid

9

(9,998)

(9,806)

Net cash flows used in financing activities


(29,517)

(21,805)

Net decrease in cash and cash equivalents


(442)

(2,012)

Net foreign exchange difference


787

(797)

Cash and cash equivalents at 1 January

15

18,633

21,442

Cash and cash equivalents at 31 December

15

18,978

18,633

 

Notes to the consolidated financial statements

for the year ended 31 December 2025

 

1 Basis of preparation

The results for the year ended 31 December 2025, including comparative financial information, have been prepared in accordance with UK adopted international accounting standards ("IFRS") 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.

 

Stelrad Group plc ("the Company") has adopted all IFRS in issue and effective for the year.

 

While the financial information included in this preliminary announcement has been prepared in accordance

with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient

information to comply with IFRS. The Company expects to publish full financial statements that comply with

IFRS in March 2026.

 

The financial information set out above does not constitute the Company's statutory accounts for the year

ended 31 December 2025 but is derived from those accounts. Statutory accounts for 2025 will be delivered in due course. The auditors have reported on those accounts: their report was unqualified, did not draw attention to any matters by way of emphasis and did not contain statements under s498 (2) or (3) of the Companies Act 2006.

 

Going concern

Having considered the Group's current trading, cash flow generation and debt maturity and applying severe but plausible stress testing scenarios, the Directors have concluded that it is appropriate to prepare the consolidated financial statements on a going concern basis.  Under a severe but plausible downside scenario, the Group remains within its debt facilities and its financial covenants for at least 12 months after the date the accounts are signed.  Based on this going concern review, the Directors have concluded that, at the time of approving the financial statements, the Group will be able to continue to operate within its existing facilities and is well placed to manage its business risks successfully.

 

The financial information presented in respect of the year ended 31 December 2025 has been prepared on a basis consistent with the financial information presented for the year ended 31 December 2024.

 

2 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.

 

Impairment of non-financial assets

Intangible assets, including goodwill, that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets that are subject to amortisation and depreciation are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Details of the impairment assessment of goodwill and other assets, which includes key estimates, are disclosed in note 11.

 

Impairment of inventories

Following the exit from a loss making contract in the Radiators SpA business in the year, the Group has reduced the operational complexity and product range of the business, resulting in a one-off inventory provision of £2.3 million. The inventory provision has been classified as exceptional in nature because of the direct link between the exit from the loss making contract and the reduction in operational complexity of the business, and resultant product range rationalisation.

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 below. 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.

 

Rebates

A proportion of rebates is paid to the end consumers of goods sold. Uncertainties exist over the value of the rebates recognised as, until claims are made by end consumers, the Group cannot be certain which consumers have purchased which products. Due to this uncertainty, estimates are made over what contractual rates, if any, will apply to goods sold.

 

Management makes significant estimates and assumptions in order to assess the level of rebate required at the balance sheet date. Management is able to utilise market information and historical/current data and trends in order to make an appropriate estimate.

 

A reasonably possible change in the estimates surrounding rebates would not result in a material impact on the financial statements.

 

3 Segmental information

IFRS 8 Operating Segments requires operating segments to be determined from 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

 

2025

£'000

2024

£'000

UK & Ireland

131,254

137,351

Europe

133,526

138,971

Turkey & International

14,818

14,255

Total revenue

279,598

290,577

 

The revenue arising in the UK, being the Company's country of domicile, was £126,046,000 (2024: £134,442,000). All revenue arising in the UK was to external customers.

 

Adjusted operating profit by geographical market

 

2025

£'000

2024

£'000

UK & Ireland

29,959

29,548

Europe

7,331

7,937

Turkey & International

1,183

1,042

Central costs

(6,002)

(7,005)

Adjusted operating profit

32,471

31,522

Exceptional items

(14,925)

-

Amortisation of customer relationships

(69)

(137)

Operating profit

17,477

31,385

 

Further detail on the exceptional items can be found in note 5.

 

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 (2024: one).

 

Non-current operating assets

 

2025

£'000

2024

£'000

UK

14,662

16,324

The Netherlands

16,779

17,453

Turkey

26,622

25,549

Italy

13,916

23,894

Other

859

605

Total

72,838

83,825

 

The CODM reviews the non-current operating assets based on the geographical regions in the table above, rather than those used when reviewing revenue and adjusted operating profit, because this is the physical location of the assets. These values agree to the measurement of the assets per the financial statements.

 

4 Other operating income/(expenses)

 

2025

£'000

2024

£'000

Net gain on disposal of property, plant and equipment

80

118

Foreign currency gains

3,559

723

Net losses on forward derivative contracts

(1,052)

(35)

Sundry other income

414

513

 

3,001

1,319

 

5 Exceptional items

 

2025

£'000

2024

£'000

Impairment of goodwill

2,694

-

Impairment of customer relationships

1,392

-

Impairment of property, plant and equipment

5,814

-

Inventory provision

2,307

-

Restructuring costs

2,718

-

 

14,925

-

 

During the year ended 31 December 2025, the charge for exceptional items was £14,925,000, of which £2,262,000 relates to cash items and £12,663,000 relates to non-cash items.

 

During the year, an impairment was recognised in respect of the Radiators SpA cash-generating unit, resulting in an impairment of goodwill of £2,694,000, an impairment of customer relationships of £1,392,000, an impairment of property, plant and equipment of £5,814,000 and an inventory provision of £2,307,000, which has arisen due to the circumstances surrounding the impairment.

 

Additionally, restructuring costs of £2,718,000 have been incurred or provided for as a result of proactive margin management initiatives and cost reduction activities across our sites in Turkey, Italy and Denmark.

 

Further detail can be found in the Finance and Business Review within the exceptional items section on page 13.

 

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.

 

6 Finance costs

 

2025

£'000

2024

£'000

Interest on bank loans

4,461

5,723

Amortisation of loan issue costs

692

375

Interest expense on defined benefit liabilities

1,047

921

Finance charges payable on lease liabilities

97

129

Other finance charges

1,279

1,041

 

7,576

8,189

 

Amortisation of loan issue costs includes £342,000 related to a one-off loan fee amortisation upon refinancing, which has been classified as one-off refinancing costs in note 8 when calculating the adjusted earnings per share.

 

7 Income tax expense

The major components of income tax expense are as follows:

 

2025

£'000

2024

£'000

Consolidated income statement



Current income tax:



Current income tax charge

8,794

5,083

Adjustments in respect of current income tax charge of previous year

(41)

(127)

Deferred tax:



Relating to origination and reversal of temporary differences

477

1,908

Income tax expense reported in the income statement

9,230

6,864

 

 

2025

£'000

2024

£'000

Consolidated statement of comprehensive income



Tax related to items recognised in other comprehensive income/(expense) during the year:



Deferred tax on actuarial loss

(28)

(232)

Current tax on monetary items forming part of net investment and on hedges of net investment

(229)

217

Income tax credited to other comprehensive income

(257)

(15)

 

Reconciliation of tax expense and the accounting profit at the tax rate in the United Kingdom of 25% (2024: 25%):

 

2025

£'000

2024

£'000

Profit before tax

10,074

23,382

Profit before tax multiplied by standard rate of corporation tax in the UK of 25% (2024: 25%)

2,519

5,846

Adjustments in respect of current income tax charge of previous year

(41)

(127)

Non-deductible expenses

2,883

352

Differences arising due to tax losses

1,048

286

Other timing differences (including exceptional charges)

2,150

721

Benefit of overseas investment incentives

-

(220)

Withholding tax on dividend income

1,508

1,032

Effect of different overseas tax rates

(837)

(1,026)

Total tax expense reported in the income statement

9,230

6,864

 

Deferred tax

Deferred tax relates to the following:

Consolidated balance sheet


Consolidated income statement

 

2025

£'000

2024

£'000

 

2025

£'000

2024

£'000

Capital allowances

(784)

(641)


11

(742)

Pension

901

1,010


(189)

99

Fixed asset fair value adjustments

(184)

(1,303)


1,165

58

Losses available for offsetting against future income

2,343

3,322


(1,069)

(965)

Other temporary differences

2,338

2,224

 

(395)

(358)

Deferred tax charge

 

 

 

(477)

(1,908)

Net deferred tax assets

4,614

4,612

 



Reflected in the balance sheet as:






Deferred tax assets

4,836

4,821




Deferred tax liabilities

(222)

(209)

 



Deferred tax assets, net

4,614

4,612

 



 

Reconciliation of deferred tax assets, net

 

2025

£'000

2024

£'000

Opening balance as at 1 January

4,612

6,467

Tax charge recognised in income statement

(477)

(1,908)

Tax income recognised in other comprehensive income/(expense)

28

232

Exchange adjustment

451

(179)

Closing balance as at 31 December

4,614

4,612

 

The Group offsets tax assets and liabilities if it has a legally enforceable right to set them off and they are levied by the same tax authority. Deferred tax assets in respect of losses of £602,000 (2024: £2,118,000) have been recognised in respect of two (2024: two) loss-making subsidiary companies; these are recognised on the grounds of future projected performance.

 

Deferred tax asset recognition

The deferred tax assets have been analysed in detail at the year end and the recognition of assets, in particular those in respect of tax losses, has been scrutinised in detail with modelling undertaken to ensure that they are likely to be utilised over a period of time where profitability can be estimated with reasonable certainty.

 

Unrecognised deferred tax balances

 

2025

£'000

2024

£'000

Capital allowances

14

13

Losses available for offsetting against future income

2,741

3,486

 

2,755

3,499

 

The Group has tax losses which arose in the United Kingdom of £10,964,000 (2024: £13,944,000) that are available indefinitely for offsetting against future taxable profits of the companies in which the losses arose. Deferred tax assets have not been recognised in respect of these losses as they either relate to CIR losses which cannot be reliably utilised in the short term or they arose prior to April 2017 in subsidiaries that are not profit making and where there is no evidence of recoverability in the near future. 

 

8 Earnings per share

 

2025

£'000

2024

£'000

Net profit for the year attributable to owners of the parent

844

16,518

Exceptional items

14,925

-

Amortisation of customer relationships

69

137

Refinancing costs (note 6)

342

-

Tax on exceptional items

582

-

Tax on amortisation of customer relationships

(19)

(38)

Tax on refinancing costs

(86)

-

Adjusted net profit for the year attributable to owners of the parent

16,657

16,617

 

 

2025

Number

2024

Number

Basic weighted average number of shares in issue

127,352,555

127,352,555

Diluted weighted average number of shares in issue

127,474,048

128,389,983

Earnings per share



Basic earnings per share (pence per share)

0.66

12.97

Diluted earnings per share (pence per share)

0.66

12.87

Adjusted earnings per share



Basic earnings per share (pence per share)

13.08

13.05

Diluted earnings per share (pence per share)

13.07

12.94

 

9 Dividends paid

The Board is recommending a final dividend of 5.05 pence per share (2024: 4.81 pence per share), which, if approved, will mean a final dividend payment of £6,431,000 (2024: £6,126,000).

 

The proposed final dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as a liability in these consolidated financial statements.

 

 

2025

£'000

2024

£'000

Declared and paid during the year



Equity dividend on ordinary shares:



Final dividend for 2024: 4.81p per share (2023: 4.72p per share)

6,126

6,011

Interim dividend for 2025: 3.04p per share (2024: 2.98p per share)

3,872

3,795

 

9,998

9,806

 

 

2025

£'000

2024

£'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

6,126

 

10 Property, plant and equipment

 

Freehold land

and buildings

£'000

Leasehold

buildings

£'000

Assets under

construction

£'000

Plant and

equipment

£'000

Fixtures, fittings

and motor

vehicles

£'000

Total

£'000

Cost







At 1 January 2024

46,202

12,741

1,266

89,078

12,280

161,567

Additions

124

214

4,951

980

742

7,011

Transfers

214

-

(4,438)

3,820

404

-

Disposals

-

(140)

-

(829)

(806)

(1,775)

Exchange adjustment

(1,675)

(587)

(19)

(3,929)

(331)

(6,541)

At 31 December 2024

44,865

12,228

1,760

89,120

12,289

160,262

Additions

201

706

2,243

2,748

1,267

7,165

Transfers

34

-

(1,346)

1,114

198

-

Disposals

(259)

(1,422)

-

(11,869)

(1,065)

(14,615)

Exchange adjustment

1,961

669

60

4,601

411

7,702

At 31 December 2025

46,802

12,181

2,717

85,714

13,100

160,514

Accumulated depreciation and impairment







At 1 January 2024

14,749

5,760

-

45,766

8,045

74,320

Depreciation charge

1,616

1,489

-

6,766

1,821

11,692

Disposals

-

(47)

-

(806)

(699)

(1,552)

Exchange adjustment

(411)

(298)

-

(2,461)

(201)

(3,371)

At 31 December 2024

15,954

6,904

-

49,265

8,966

81,089

Depreciation charge

1,415

1,486

-

6,745

1,747

11,393

Disposals

(260)

(1,422)

-

(11,853)

(1,061)

(14,596)

Impairment (note 11)

5,815

-

-

(23)

22

5,814

Exchange adjustment

654

388

-

3,002

279

4,323

At 31 December 2025

23,578

7,356

-

47,136

9,953

88,023

Net book value







At 31 December 2025

23,224

4,825

2,717

38,578

3,147

72,491

At 31 December 2024

28,911

5,324

1,760

39,855

3,323

79,173

At 31 December 2023

31,453

6,981

1,266

43,312

4,235

87,247

 

The carrying value of right-of-use assets within property, plant and equipment, by line item, at the year end is:

 

2025

£'000

2024

£'000

Leasehold buildings

4,819

5,299

Plant and equipment

1,546

1,175

Fixtures, fittings and motor vehicles

1,040

1,255

 

7,405

7,729

 

Right-of-use asset additions within property, plant and equipment, by line item, during the year are:

 

2025

£'000

2024

£'000

Leasehold buildings

706

214

Plant and equipment

736

523

Fixtures, fittings and motor vehicles

508

413

 

1,950

1,150

 

Depreciation of right-of-use assets within property, plant and equipment, by line item, during the year is:

 

2025

£'000

2024

£'000

Leasehold buildings

1,465

1,462

Plant and equipment

577

565

Fixtures, fittings and motor vehicles

607

739

 

2,649

2,766

 

Land and buildings with a carrying amount of £12,024,000 (2024: £18,095,000) are subject to a first charge to secure the Group's bank loan.

 

No borrowing costs have been capitalised since the assets have not met the criteria for qualifying assets.

 

11 Intangible assets

 

Goodwill

£'000

Customer

relationships

£'000

Technology

and software

costs

£'000

Total

£'000

Cost





At 1 January 2025

2,607

1,737

1,357

5,701

Additions

-

-

35

35

Disposals

-

-

(210)

(210)

Exchange adjustment

146

97

73

316

At 31 December 2025

2,753

1,834

1,255

5,842

Accumulated amortisation and impairment





At 1 January 2025

-

323

726

1,049

Amortisation

-

69

261

330

Disposals

-

-

(124)

(124)

Impairment

2,694

1,392

-

4,086

Exchange adjustment

59

50

45

154

At 31 December 2025

2,753

1,834

908

5,495

Net book value





At 31 December 2025

-

-

347

347

At 31 December 2024

2,607

1,414

631

4,652

 

Included in technology and software costs are assets under construction of £nil (2024: £nil), which are not amortised.

 

Impairment

Goodwill is subject to annual impairment testing. All of the goodwill recognised was allocated to a single cash‑generating unit ("CGU"), being the Radiators SpA division which, after the impairment was recognised, had a total carrying value of £13.9 million. A CGU represents the lowest level in the Group at which goodwill is monitored for internal management purposes.

Management is required to assess CGUs for impairment where it believes there are triggers for impairment. During the year, management identified that there were triggers for impairment with respect to the Radiators SpA CGU and performed an impairment review as set out below.

 

Impairment tests were performed by analysing the carrying amount allocated to the CGU against the higher of fair value less costs to sell or its value in use. Both methods used the net present value of the CGU's discounted future cash flows covering a three‑year period.

 

Terminal growth rates of 1.8% were applied beyond this, based on historical macroeconomic performance and projections of the sector served by the CGUs.

 

When assessing for impairment, management has considered the impact of climate change, particularly in the context of the risks and opportunities identified within the Task Force on Climate‑related Financial Disclosures Report, and has not identified any material short‑term impacts from climate change that would impact the recoverable amount of the CGU.

 

For the value in use model, a pre‑tax discount rate of 14.8% has been applied in determining the recoverable amounts of the CGU. The pre‑tax discount rate was estimated based on the Group's risk adjusted cost of capital. Other key assumptions throughout the budget period are EBITDA, which has been included in the terminal value at a margin of 7%, volumes, contribution per radiator sold and capital expenditure. The key assumptions have been determined using past experience or external sources of information.

 

Further detail on the impairment can be found in the Finance and Business Review within the exceptional items section on page 13.

 

Based on the impairment tests performed, the recoverable amount calculated in the impairment review of the Radiators SpA CGU was lower than the carrying amount. As a result, an impairment has been recognised, reducing goodwill by £2,694,000, customer relationships by £1,392,000 and property, plant and equipment by £5,814,000. Inventories are not included in the carrying value of the CGU; however, the circumstances surrounding the impairment have resulted in an additional inventory provision of £2,307,000. The tax impact of the total impairment was a charge of £856,000.

 

12 Financial liabilities

 

Financial liabilities - other - not interest bearing

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. 

 

Liabilities

2025

£'000

2024

£'000

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 liabilities - interest-bearing loans and borrowings

 

Effective

interest rate

%

Maturity

2025

£'000

2024

£'000

Current interest-bearing loans and borrowings





Lease liabilities

 

 

2,579

2,212

 

 

 

2,579

2,212

Non-current interest-bearing loans and borrowings





Lease liabilities



4,979

5,671

Revolving credit facility - GBP

SONIA + 1.75%

4 Dec 2028

32,300

41,750

Revolving credit facility - Euro

Euribor + 1.75%

4 Dec 2028

13,097

13,146

Term loan

Euribor + 1.75%

4 Dec 2028

24,750

23,436

Unamortised loan costs

 

 

(715)

(674)

 

 

 

74,411

83,329

Total interest-bearing loans and borrowings

 

 

76,990

85,541

 

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 ("RCF") and a €28.346 million term loan facility.

 

During the year ended 31 December 2025, the £100 million loan facility was 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.

 

Changes in liabilities arising from financing activities

 

1 January

2025

£'000

Cash flows

£'000

Non-cash

changes

£'000

31 December

2025

£'000

Liabilities from financing activities





Revolving credit facility - GBP

41,750

(9,450)

-

32,300

Revolving credit facility - Euro

13,146

(769)

720

13,097

Term loan

23,436

-

1,314

24,750

Lease liabilities

7,883

(712)

387

7,558

 

86,215

(10,931)

2,421

77,705

Other assets





Cash and cash equivalents

(18,633)

442

(787)

(18,978)

 

(18,633)

442

(787)

(18,978)

Net liabilities arising from financing activities

67,582

(10,489)

1,634

58,727

 

The non-cash changes all relate to foreign exchange differences.

 

13 Inventories

 

2025

£'000

2024

£'000

Raw materials

23,183

23,818

Work in progress

2,796

3,388

Finished goods

33,350

37,063

Other consumables

3,073

3,042

 

62,402

67,311

 

The cost of inventories recognised as an expense in the year was £193,327,000 (2024: £201,617,000). The provision for the impairment of stocks increased in the year, giving rise to a cost of £3,754,000 (2024: cost of £760,000), of which £2,307,000 was recognised as an exceptional item (note 5). At 31 December 2025, the provision for the impairment of stocks was £7,958,000 (2024: £3,974,000).

 

14 Trade and other receivables

 

2025

£'000

2024

£'000

Current



Trade receivables

43,508

42,279

Other receivables

2,842

2,629

Prepayments

814

570

 

47,164

45,478

Non-current



Other receivables

299

284

 

299

284

 

The table below sets out the movements in the allowance for expected credit losses of trade receivables:

 

2025

£'000

2024

£'000

At 1 January

548

806

Charge for the year

-

14

Utilised

(20)

-

Unused amounts reversed

(7)

(246)

Exchange adjustment

31

(26)

At 31 December

552

548

 

As at 31 December, the ageing of trade receivables (gross of impairment) is as follows:

 

Total

£'000

Current

£'000

<30 days

£'000

30-90 days

£'000

>90 days

£'000

2025






Gross carrying amount

44,060

32,679

9,881

1,500

-

2024






Gross carrying amount

42,827

33,241

5,464

3,873

249

 

15 Cash and cash equivalents

 

2025

£'000

2024

£'000

Cash at bank and on hand

18,978

18,633

 

16 Trade and other payables

 

2025

£'000

2024

£'000

Current

 


Trade payables

44,040

46,581

Other payables and accruals

17,168

18,485

Other taxes and social security

5,595

3,822

Interest payable

255

322

 

67,058

69,210

 

17 Provisions

 

Warranty

£'000

Compensation

fund

£'000

Restructuring

£'000

Unused

vacation

£'000

Total

£'000

At 1 January 2024

746

1,220

2,684

347

4,997

Arising during the year

332

126

-

765

1,223

Released

(169)

-

-

-

(169)

Utilised

(430)

-

(2,323)

(440)

(3,193)

Exchange adjustment

(27)

(59)

(52)

(61)

(199)

At 31 December 2024

452

1,287

309

611

2,659

Arising during the year

362

3

332

626

1,323

Released

-

(115)

-

-

(115)

Utilised

(310)

(65)

(9)

(461)

(845)

Exchange adjustment

27

67

24

(237)

(119)

At 31 December 2025

531

1,177

656

539

2,903

Current

116

-

656

299

1,071

Non-current

415

1,177

-

240

1,832

 

Compensation fund

The supplementary customer compensation fund is made in accordance with European legislation to provide for potential severance payments to agents.

 

Restructuring

The restructuring provision relates to Group-wide restructuring programmes undertaken to drive cost savings for future periods.

 

Unused vacation

A provision is recognised in respect of an unused vacation pay liability due to certain employees in Turkey. The timing of the provision is dependent on the rate at which employees take additional vacation.

 

18 Share capital and reserves

 

2025

Number

2025

£

2024

Number

2024

£

Authorised, called up and fully paid





Ordinary shares of £0.001 each

127,352,555

127,353

127,352,555

127,353

 

 

127,353

 

127,353

 

19 Commitments and contingencies

 

Commitments

Amounts contracted for but not provided in the financial statements amounted to £1,349,000 (2024: £177,000) for the Group. All amounts relate to property, plant and equipment. 

 

Contingent liabilities

Termo Teknik Ticaret ve Sanayi A.S. has issued letters of guarantee and letters of credit to its steel suppliers amounting to $846,000 (2024: $17,917,000) and $36,444,000 (2024: $18,071,000) respectively. Termo Teknik Ticaret ve Sanayi A.S. has also issued letters of guarantee denominated in Turkish Lira totalling TL28,993,000 (2024: TL26,514,000).

 

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 31 December 2025 is £13,863,000 (2024: £12,123,000) on purchases and £23,750,000 (2024: £17,500,000) on sales.

 

The fair value of the unsettled forward contracts held at the balance sheet date, determined by reference to their market values, is a liability of £221,000 (2024: asset of £293,000).

 

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.

 

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 year and adjusted earnings per share

 

2025

£'000

2024

£'000

Profit for the year

844

16,518

Adjusted for:



Exceptional items

14,925

-

Amortisation of customer relationships

69

137

Refinancing costs

342

-

Tax on exceptional items

582

-

Tax on amortisation of customer relationships

(19)

(38)

Tax on refinancing costs

(86)

-

Adjusted profit for the year

16,657

16,617

Basic weighted average number of shares in issue

127,352,555

127,352,555

Diluted weighted average number of shares in issue

127,474,048

128,389,983

Earnings per share



Basic earnings per share (pence per share)

0.66

12.97

Diluted earnings per share (pence per share)

0.66

12.87

Adjusted earnings per share



Basic earnings per share (pence per share)

13.08

13.05

Diluted earnings per share (pence per share)

13.07

12.94

 

Reconciliation of adjusted operating profit and EBITDA

 

2025

£'000

2024

£'000

Operating profit

17,477

31,385

Adjusted for:



Exceptional items

14,925

-

Amortisation of customer relationships

69

137

Adjusted operating profit

32,471

31,522

Adjusted for:



Depreciation

11,393

11,692

Amortisation (excluding customer relationships)

261

331

EBITDA

44,125

43,545

 

Reconciliation of cash flow from operations, adjusted cash flow from operations and free cash flow

 

2025

£'000

2024

£'000

EBITDA (see reconciliation above)

44,125

43,545

Adjusted for:



Exceptional items - cash items

(2,262)

-

Gain on disposal of property, plant and equipment

(80)

(118)

Share-based payments

704

440

Working capital adjustments

(520)

(12,375)

Net capital expenditure

(7,727)

(8,485)

Cash flow from operations

34,240

23,007

Income tax paid

(8,000)

(6,265)

Interest paid - net

(5,732)

(7,186)

Free cash flow

20,508

9,556

Cash flow from operations (see reconciliation above)

34,240

23,007

Adjusted for:



Exceptional items

2,262

-

Exceptional items' impact on working capital

(330)

2,320

Adjusted cash flow from operations

36,172

25,327

 

 

2025

£'000

2024

£'000

Decrease in trade and other receivables

517

3,885

Decrease/(increase) in inventories

4,690

(6,143)

Decrease in trade and other payables

(4,430)

(6,743)

Increase/(decrease) in provisions

94

(2,176)

Movement in other financial assets/liabilities

531

(610)

Decrease in other pension provisions

(1)

(7)

Difference between pension charges and cash contributions

(1,921)

(581)

Working capital adjustments

(520)

(12,375)

 

 

2025

£'000

2024

£'000

Proceeds from sale of property, plant, equipment and intangible assets

185

341

Purchase of property, plant and equipment

(5,215)

(5,861)

Purchase of intangible assets

(35)

(100)

Payment of lease liabilities

(2,662)

(2,865)

Net capital expenditure

(7,727)

(8,485)

 

Reconciliation of business capital employed and return on capital employed

 

2025

£'000

2024

£'000

Property, plant and equipment

72,491

79,173

Technology and software costs

347

631

Inventories

62,402

67,311

Trade and other receivables

47,463

45,762

Trade and other payables

(67,058)

(69,210)

Provisions

(2,903)

(2,659)

Net employee defined benefit liabilities

(4,625)

(5,118)

Financial (liabilities)/assets

(221)

293

Business capital employed

107,896

116,183

 

 

2025

£'000

2024

£'000

Adjusted operating profit

32,471

31,522

Business capital employed

107,896

116,183

Return on capital employed

30.1%

27.1%

 

Reconciliation of net debt and leverage

 

2025

£'000

2024

£'000

Total interest-bearing loans and borrowings

76,990

85,541

Cash and cash equivalents

(18,978)

(18,633)

Adjusted for:



Unamortised loan costs

715

674

Net debt

58,727

67,582

EBITDA (see reconciliation above)

44,125

43,545

Debt leverage ratio

1.33

1.55

 

Reconciliation of net debt and leverage before lease liabilities

 

2025

£'000

2024

£'000

Total interest-bearing loans and borrowings

76,990

85,541

Cash and cash equivalents

(18,978)

(18,633)

Adjusted for:



Unamortised loan costs

715

674

Lease liabilities

(7,558)

(7,883)

Net debt before lease liabilities

51,169

59,699

EBITDA (see reconciliation above)

44,125

43,545

Debt leverage ratio before lease liabilities

1.16

1.37

 

 

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 year divided by the weighted average number of shares in issue.

Adjusted operating profit: Operating profit before exceptional items, amortisation of customer relationships, foreign exchange differences (until 31 December 2022) and the impact of IAS 29 (until 31 December 2022).

Adjusted profit for the year: Earnings before exceptional items, amortisation of customer relationships, foreign exchange differences (until 31 December 2022), the impact of IAS 29 (until 31 December 2022) 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.

CAGR: Compound annual growth rate.

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, exceptional items, foreign exchange differences (until 31 December 2022) and the impact of IAS 29 (until 31 December 2022).

Free cash flow: Cash flow from operations less tax paid less net interest paid.

Net debt: The sum of revolving credit facilities, term loan and 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.

 

Certain statements in this presentation are forward-looking statements which are based on Stelrad Group plc's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. Such forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", or other words of similar meaning. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. Given these risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by applicable law, Stelrad Group plc undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

 

 

 

 

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