Newcastle radiator firm generates £280m, doubling cash flow
Free cash flow more than doubled at radiator manufacturer Stelrad Group in its latest full financial year.
Despite this, revenue was impacted by subdued demand in its core territories of UK and Ireland and Europe.
In the year ended 31 December 2025 the company, which is headquartered in Newcastle with operations in Mexborough and across Europe, generated revenue of £279.6m - down 3.8 per cent from the previous year.
The listed firm said this was due to "continued economic uncertainty" in its core territories, with revenue down 4.4 per cent in the UK & Ireland alone.
The rate of decline did soften from the prior year.
In spite of this, adjusted operating profit rose slightly from £31.5m to £32.5m driven by margin management activities and strategic initiatives to drive favourable product mix. Statutory operating profit tumbled to £17.5m due to impairment and restructuring charges.
Free cash flow increased significantly from £9.6m to £20.5m as a result of "improved working capital control, disciplined capital expenditure and reduced interest costs".
Trevor Harvey, chief executive, said the year demonstrated the company's "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," he added.
Harvey said the board "remains confident in delivering further progress during 2026" adding that its operational excellence initiatives and market positioning means the business is "well-placed to outperform its peers in the near term and benefit from any medium-term market recovery".
Words: Alice Bird