Stelrad Group Reports Decline in Adjusted Operating Profit for First Half
Stelrad Group reports a decline in adjusted operating profit for the first half due to anticipated volume decrease and increased depreciation charges.
London, September XX, 20XX - Stelrad Group, a leading manufacturer of steel panel radiators, announced a decrease in adjusted operating profit for the first half of the year while reiterating its guidance for the full year.
During this period, the company's adjusted operating profit, which excludes exceptional and other one-off items, amounted to £14 million ($17.8 million), down from £19 million in the previous year. Stelrad attributed this decline to an anticipated volume decrease compared to a strong first-half performance last year, along with increased depreciation charges. However, proactive margin management and cost reduction initiatives partially offset these factors.
Despite the challenging market conditions in several countries, Stelrad's robust market position positions the group to surpass industry expectations and achieve its full-year targets," commented Chief Executive Trevor Harvey.
In contrast, pretax profit rose significantly to £10.3 million, compared to £4.7 million in the same period last year. The integration of DL Radiators' activities contributed to the company's revenue growth, which increased from £150.1 million to £157 million.
To reward shareholders, the board declared an unchanged interim dividend of 2.92 pence per share.
Stelrad Group remains confident in its ability to navigate the current economic landscape and aims to deliver on its full-year expectations. At the time of writing, shares traded flat at 113 pence.