Interim Results

Stelrad Group plc - interim results for the six months ended 30 June 2024

Strong performance; on target for full year outlook

Stelrad Group plc ("Stelrad" or "the Group" or "the Company", LSE: SRAD), a leading specialist manufacturer and distributor of radiators in the UK, Europe and Turkey, today announces its unaudited interim results for the six months ended 30 June 2024.

Results summary

(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 and operational highlights

·      Revenue was down 8.9%, as anticipated, to £143.1 million due to the continuation of a challenging macroeconomic environment.

o UK & Ireland: revenue was only down 1.5% supported by strong product mix despite reduced volume.

o Europe: revenue was down 12.6% primarily due to depressed levels of repair, maintenance and improvement ("RMI") activity.

o Turkey & International: revenue was down 30.6%, to £7.2 million, due to low economic activity in Turkey.

·      Market share increased by 1.6% to 20.8%[1].

·      On Time In Full (OTIF) delivery of 98% in the UK & Ireland building trust in our supply chain to customers.

·      16% rise in contribution per radiator to over £20, driven by operational flexibility, new designs and cost management.

·      Operating profit rose to £15.6 million, an increase of £1.8 million (13.5%), benefitting from ongoing operational discipline and margin management. Adjusted operating profit rose to £15.7 million with an adjusted operating profit margin of 11.0%, up from 8.9% in 2023.

·      Positive free cash flow, despite seasonal high point and selective investments in working capital in advance of an expected market recovery.

·      Return on capital employed increased by 2.5 ppts to 26.4% due to improved operating performance and lower Euro asset values.

·      Leverage at 30 June 2024 was 1.49x (December 2023: 1.47x), based on net debt before lease liabilities.

·      Interim dividend of 2.98p pence per share (2023 interim dividend: 2.92p), to be paid on 25 October 2024, an increase of 2%, 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.

·      Outlook for FY24 unchanged.

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

"Despite continued macroeconomic challenges across Stelrad's geographies, the Group has delivered a strong performance in a volume environment that remains subdued, with inflation and high interest rates continuing to suppress both RMI and new build markets.

"Stelrad's performance during the period, particularly in terms of market share growth and growth in contribution per radiator, combined with cost base reduction and ongoing margin optimisation actions, demonstrates the strength of our business model, and further underpins the Board's confidence in the outlook for the full year.

"Stelrad remains well positioned for a sustained period of profitable growth as markets recover across our core geographies, with the Group well placed to benefit from strong underlying replacement demand across Europe and the long-term regulatory tailwinds for decarbonised, energy-efficient heating systems."

Analyst Conference Call

Trevor Harvey (CEO) and Leigh Wilcox (Interim CFO) will host an analyst presentation at 9am today, 12 August 2024, to talk through the Group's operational and financial performance.

The presentation will be broadcast live at https://brrmedia.news/SRAD_HY24

To dial in via a phone line, please use the below dial in details.

Dial in number: +44 (0) 33 0551 0200

Password: Stelrad

For further information:

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 2022, Stelrad moved into a market leadership position, with 18.8% share by volume of the combined UK, European and Turkish steel panel radiator market. The Group was market leader in seven countries - the UK, Ireland, France, the Netherlands, Belgium, Denmark and Greece - with a top 3 position in a further nine territories.  In the 20 countries for which 2023 steel panel radiator share data is now available (which represented 95% of the European market in 2022), Stelrad's market share has increased by 1.6 percentage points to 20.8%.

Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2023 employed 1,400+ people, with manufacturing and distribution facilities in Çorlu (Turkey), Mexborough (UK), Moimacco (Italy) and Nuth (Netherlands), with further commercial and distribution operations in Kolding (Denmark) and 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/.

CHIEF EXECUTIVE OFFICER'S REVIEW

Overview

Despite continued macroeconomic challenges across our geographies, the Group has delivered a strong performance in a volume environment that remains subdued, with inflation and high interest rates continuing to suppress both RMI and new build markets.

As anticipated, revenues declined 8.9% to £143.1 million (2023: £157.0 million) against volume declines of 8% which by geographical segment were split: UK & Ireland (7.2% decline), Europe (5.1% decline) and Turkey & International (26.3% decline).

The Group's cost reduction initiatives, combined with favourable product mix and steel pricing in the UK, drove a significant increase in contribution per radiator, which increased by 16.0% in the period to over £20 for the first time, building on six consecutive year on year increases. As a result of these factors, operating profit increased to £15.6 million during the period, a 13.5% increase relative to 2023. Adjusted operating profit increased to £15.7 million during the period, a 12.8% increase relative to 2023.

Stelrad's performance during the period, particularly in terms of market share growth and growth in contribution per radiator, combined with cost base reduction and ongoing margin optimisation actions, further underpin the Board's confidence in the outlook for the full year and beyond.

Strong operating performance driven by share gains and geographic diversification

In the first six months of 2024, despite a volume environment that remains subdued, the Group's geographic diversification remained a key driver, with product mix benefits in the UK & Ireland helping to more than offset challenging trading environments in Europe and Turkey. Crucially, the Group's financial performance at the EBITDA and adjusted operating profit level remained strong, particularly in the UK & Ireland, driven by the cost reduction activities initiated in the second half of 2023 alongside ongoing margin management activity, including the transfer of further manufacturing volume to Turkey.

Relative to its competitors, Stelrad's strong UK share position has been advantageous, with UK & Ireland revenue only declining marginally and adjusted operating profit improving.

Revenue in the UK & Ireland decreased by 1.5% to £69.1 million, while adjusted operating profit increased significantly by 31.5% to £15.1 million, driven by the Group's margin management initiatives alongside a more favourable product mix as a result of Part L regulatory changes and management actions to drive adoption.

In Europe, revenue decreased by 12.6% to £66.8 million, with adjusted operating profit declining 23.5% to £3.7 million, primarily due to the decreased sales volumes in addition to adverse country and customer mix in our principal European markets. Radiators SpA operates predominantly within the European segment with a strong presence in the German and French markets, which have both experienced significant volume declines since mid-2022. While the continuation of challenging market conditions has meant that the financial performance of Radiators SpA has remained below expectations, at the point of acquisition, the strategic value of Radiators SpA within the Group is compelling and profitability is expected to improve with recovery in its key end markets, enhanced product mix and margin management.

In Stelrad's Turkey & International markets, while revenue reduced by 30.6% to £7.2 million, adjusted operating profit increased 35.0% to £0.9 million.

Strategic priorities

To fulfil our purpose of helping to heat homes sustainably, we continue to pursue the commercial and operational strategies developed to achieve our four key strategic objectives: growing market share, improving product mix, optimising routes to market and positioning effectively for decarbonisation.

The Group's strong positioning across the UK and Europe has contributed to a significant increase in our market share across key territories.  In the 20 European countries for which 2023 steel panel radiator share data is available, Stelrad's market share increased by 1.6% to 20.8%.

Mainly due to the UK's stronger performance relative to Europe, the Group's product mix of higher added-value premium steel panel and other designer radiators fell marginally to 13.2% (2023: 14.3%). However, Stelrad remains well positioned to benefit from expected long-term growth in these products and has delivered progress in the UK & Ireland, the Group's largest segment.

The Group's expanded product portfolio, including electrical, K3, vertical and 900mm high radiators, which are all aligned with decarbonisation priorities, contributed to the strong performance in the UK, with a 7% increase in the average radiator size in this region driven by the implementation of revised Part L building regulations.

Environmental, social and governance ("ESG") objectives

Sustainability is central to our core purpose, and significant progress in this area has been made since we developed our Fit for the Future sustainability framework. This framework reflects the significant role we can play in the transition to a zero carbon heating industry, through driving better environmental performance, enabling our exceptional workforce and by conducting business responsibly.

In 2024, our focus has been on further developing our metrics and targets, building on the sustainability targets first published in 2023, and on addressing our most material sustainability areas, including health and safety, packaging and developing products suitable for all customers as we transition to a lower carbon heating industry. This includes the successful launch of a low-carbon range of radiators.

Interim dividend

The Board has declared an interim dividend of 2.98 pence per share, an increase of 2%.  The interim dividend will be paid on 25 October 2024 to shareholders on the register on 11 October 2024. 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

The Group's outlook for the full year remains unchanged with the Board remaining confident in its long-term growth plans.

While challenging economic conditions across the Group's key territories have begun to show indicators of easing, interest rates remain elevated, which continues to subdue both RMI and new build markets for now.

There have been some early indicators of a recovery in the volumes in some of the Group's European territories, with recent volume increases in Belgium, the Netherlands, Poland and Sweden.

As evidenced by the Group's performance, particularly in the contribution per radiator, Stelrad's proactive margin management and cost reduction activities have positioned the Group well to continue to deliver in a persistently challenging market. Given the early economic and trading indicators of a potential recovery in volumes, the Group has made some selective investments in working capital in advance of an expected market recovery to ensure continuation of our high standards of customer service.

The flexibility and resilience of Stelrad's business model, along with experience of navigating prior market downturns, continue to underpin confidence in the Group's ability to capitalise on a market recovery. This confidence has been further reinforced by the Group's market share growth and increase in contribution per radiator during the period.

These factors, combined with the improvements made in the Group's cost base and margin management, position Stelrad well to benefit from strong underlying replacement demand across Europe and regulatory tailwinds for decarbonised, energy-efficient heating systems, underpinning our confidence in driving continued long term shareholder value.

Trevor Harvey

Chief Executive Officer

12 August 2024

FINANCE AND BUSINESS REVIEW

Group overview

The following table summarises the Group's results from operations for the six months ended 30 June 2024 and 30 June 2023.

(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

A strong operating performance driven by ongoing operational control and margin management allowed the Group to more than offset the impact of a continued reduction in demand during the first half of 2024. In a trend consistent with 2023, renovation activity across the majority of European countries remained weak throughout the period, driven by a challenging macroeconomic environment related to high inflation and interest rates.

Revenue for the six months ended 30 June 2024 was £143.1 million, a decrease of £13.9 million, or 8.9%, on the six months ended 30 June 2023 (2023: £157.0 million). The decline in revenue was mainly due to a 8.0% decline in sales volumes during the period.

Operating profit for the period was £15.6 million, an increase of £1.8 million, or 13.5%, compared to the prior year (2023: £13.8 million). The increase in operating profit arose despite the 8.0% decrease in sales volumes. Operating profit grew due to the benefits of cost base management initiatives, favourable material price and strong product mix in UK & Ireland, partially offset by lower sales volumes, continued wage inflation and increased depreciation. Cost management initiatives include the transfer of further volume to Turkey and the optimisation of our facilities in the UK and the Netherlands.

Adjusted operating profit for the period was £15.7 million, an increase of £1.7 million, or 12.8%, compared to the same period last year (2023: £14.0 million). Adjusted operating profit is stated before the deduction of exceptional items of £nil (2023: £0.1 million) and the amortisation of customer relationships of £0.1 million (2023: £0.1 million).

Supported by ongoing operational control and margin management, the contribution per radiator has increased by 16.0% in the period to over £20 for the first time. The strong contribution per radiator positions the Group well for future growth in market demand. The Group continues to push 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 volumes fell by 0.1ppts to 5.7%, mainly due to a large decline in sales to Germany where the penetration of these products is high. Positively, the penetration of premium panel products into the UK & Ireland increased in the period from 2.8% to 3.1% as a result of targeted management action in the Group's largest segment, with additional work being undertaken to drive this growth further.

Profit for the period remained at £8.0 million (2023: £8.0 million). Adjusted profit for the period remained at £8.1 million (2023: £8.1 million). For both profit after tax measures, the increase in operating profit was offset by increased interest charges and a return to a more normal effective tax rate after a one off credit in 2023, as previously disclosed at the full year 2023 results. Earnings per share was 6.30 pence (2023: 6.27 pence). Adjusted earnings per share was 6.34 pence (2023: 6.36 pence). 

At 30 June 2024 the Group had cash of £19.4 million (December 2023: £21.4 million) and undrawn available facilities of £16.0 million (December 2023: £18.7 million), with net debt before lease liabilities of £64.6 million (December 2023: £60.4 million). Working capital at 30 June reflects a seasonal high point prior to the heating season with the lowest level of working capital historically experienced in December. The Group therefore expects a reduction in net debt by the end of the financial year.

Revenue by geographical market

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

UK & Ireland

The Group's revenue in the UK & Ireland for the period was £69.1 million (2023: £70.1 million), a decrease of £1.0 million, or 1.5%. This was principally a result of a decrease in sales volumes of 7.2%, partially offset by a continued increase in the average size of radiators sold, with a 7% year on year higher output, and an increase in the penetration of premium panel products both of which improve the average selling price per unit.

Europe

The Group's revenue in Europe for the period was £66.8 million (2023: £76.5 million), a decrease of £9.7 million, or 12.6%, a result of a 5.1% decrease in sales volumes, in addition to adverse country and customer mix and the impact of modest price concessions. European revenue has also been negatively impacted on consolidation by the GBP strengthening against the Euro. Encouragingly, we note certain key geographies in Europe have shown a year on year increase in volumes, including Belgium, the Netherlands, Poland and Sweden.

Turkey & International

The Group's revenue in Turkey & International for the period was £7.2 million (2023: £10.4 million), a decrease of £3.2 million, or 30.6%. This was principally a result of lower volumes to Turkey due to the economic slowdown and also lower sales to China.

Adjusted operating profit by geographical market

The table below sets out the Group's adjusted operating profit by geographical market.

UK & Ireland

The Group's adjusted operating profit in the UK & Ireland for the period was £15.1 million (2023: £11.5 million), an increase of £3.6 million, or 31.5%. The result includes the benefit of the 2023 restructure, favourable material prices, the increase in the average size of radiators and stronger premium panel penetration. These factors have combined to more than offset the lower sales volumes and the impact of ongoing inflation.

Europe

The Group's adjusted operating profit in Europe for the period was £3.7 million (2023: £4.9 million), a decrease of £1.2 million, or 23.5%. Sales volumes have continued to fall due to a weak macroeconomic environment. Additionally, adverse country and customer mix has led to a reduction in the average contribution per radiator. A high fixed cost base in Europe, combined with the sales volume decrease, has led to a reduction in operating margin percentage. The Group continues to focus on improving the margins of Radiators SpA's sales, and whilst initiatives to drive efficiencies have to date been offset by lower volumes, we expect margins for Radiators SpA, and the wider Europe segment, to recover in line with market recovery.

Turkey & International

The Group's adjusted operating profit in Turkey & International for the period was £0.9 million (2023: £0.7 million), an increase of £0.2 million, or 35.0%. The increase is due to favourable material prices, which were partially offset by a decline in sales volumes.  

Central costs

Central costs for the period were £4.0 million (2023: £3.1 million), an increase of £0.9 million, or 29.0%. The rise is due to additional LTIP charges following further awards being made in the year, an increase in the accrued charge for management bonuses and consultancy costs related to the appraisal of premium panel penetration strategies.

Exceptional items

During the period no exceptional costs were incurred (2023: £0.1 million). 

Finance costs

The Group's finance costs for the period were £3.9 million (2023: £3.5 million). The increase of £0.4 million is due to comparatively higher interest rates (blended 6.8%) in the first half of 2024 with no increase in rates expected in the balance of 2024.

Income tax expense

The Group's income tax expense for the period was £3.7 million (2023: £2.3 million), an increase of £1.4 million. The 2023 tax charge benefitted from a deferred tax credit associated with higher tax asset values allowed by the Turkish government due to hyperinflation as previously disclosed at the full year 2023 results.

Earnings per share and adjusted earnings per share

Profit for the period remained at £8.0 million (2023: £8.0m) and basic earnings per share was 6.30 pence (2023: 6.27 pence). The weighted average number of shares was 127.4 million (2023: 127.4 million). Adjusted profit for the period remained at £8.1 million (2023: £8.1 million) and consequently basic adjusted earnings per share was 6.34 pence (2023: 6.36 pence).

Dividends

The Group is committed to delivering returns for its shareholders. The Board has confidence in the Group's financial position and believes that its leading market positions, regulatory tailwinds and favourable contribution per radiator will lead to strong future financial performance. On this basis, despite lower earnings due to short term trading headwinds, the Group intends to pay an interim dividend of 2.98 pence per share on 25 October 2024 to shareholders on the register on 11 October 2024, an increase of 2% on the 2023 interim dividend.

The Group paid its final dividend for 2023 of 4.72 pence per share in May 2024, resulting in a total dividend for 2023 of 7.64 pence per share.

Cash flows

The following table summarises the Group's cash flow for the six months ended 30 June 2024 and 30 June 2023.

The Group's free cash inflow for the period was £1.3 million (2023: £3.4 million), a decrease of £2.1 million. This reflects a higher than prior year seasonal increase in working capital and higher interest paid, partially offset by an increase in EBITDA and reduced capital expenditure as the Group now returns to a lower level of spend. The Group continues to invest in working capital to ensure that it is well placed to respond to market demand.

The Group's cash inflow from operations for the period was £9.0 million (2023: £10.5 million), a decrease of £1.5 million. Adjusted operating profit for the period was £15.7 million (2023: £14.0 million), an increase of £1.7 million. Cash flow from operations conversion for the period was 57.7% (2023: 75.6%).

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 2024 related to various maintenance and upgrade projects. Capital expenditure for the remainder of 2024 will be in line with expectations.

Net debt and leverage

At 30 June 2024, net debt (including lease liabilities) of £73.4 million (December 2023: £70.3 million) comprises £84.0 million (December 2023: £81.8 million) drawn down against the multicurrency facility and £8.8 million (December 2023: £9.9 million) lease liabilities net of £19.4 million (December 2023: £21.4 million) cash.

Leverage at 30 June 2024 was 1.49x (31 December 2023: 1.47x; 30 June 2023: 1.76x), based on net debt before lease liabilities.

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 the period to 31 December 2025 and therefore these condensed consolidated interim financial statements have been prepared on a going concern basis.

Leigh Wilcox

Interim Chief Financial Officer

12 August 2024

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.

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 are listed in the Annual Report and Accounts for the year ended 31 December 2023.

For and on behalf of the Board

Trevor Harvey                                                                  

Chief Executive Officer                                  

12 August 2024                                  

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 2024 of Stelrad Group Plc for the 6 month period ended 30 June 2024 (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 2024;

·    the Condensed consolidated interim income statement and 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 2024 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 2024 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 2024, 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 2024 in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the interim results 2024, 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 2024 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. 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

12 August 2024

Stelrad Group plc

Condensed consolidated interim income statement

for the six months ended 30 June 2024

Stelrad Group plc

Condensed consolidated interim statement of comprehensive income

for the six months ended 30 June 2024

Stelrad Group plc (Registered Number 13670010)

Condensed consolidated interim balance sheet

as at 30 June 2024

The financial statements on pages 16 to 32 were approved by the Board of Directors on 12 August 2024 and signed on its behalf by:

Trevor Harvey

Chief Executive Officer

Stelrad Group plc

Condensed consolidated interim statement of changes in equity

for the six months ended 30 June 2024

Stelrad Group plc

Condensed consolidated interim statement of cash flows

for the six months ended 30 June 2024