Stelrad Group plc
Annual Report 2022
Record results | ||
01 | Highlights | |
02 | At a glance | |
underpinned by | 04 | Our investment case |
06 | Chair's statement | |
08 | Chief Executive Officer's review | |
our resilient | 10 | Market overview |
11 | Market trends | |
12 | Our business model | |
business model | 14 | Our strategy |
20 | Key performance indicators | |
22 | Stakeholder engagement | |
26 | Sustainability Report | |
42 | Finance and business review | |
48 | Risk management | |
55 | Viability statement and going concern | |
56 | Non-financial information statement |
STRATEGIC REPORT
Revenue (pre-IAS 29) | Adjusted operating profit(1) |
£312.1m | £34.0m |
(2021: £272.3m) | (2021: £33.2m) |
Adjusted free cash flow(1) | Adjusted EPS(1) |
£17.2m | 19.11p |
(2021: £21.2m) | (2021: 16.92p) |
Financial and operational highlights
• Record Group financial performance as a result of Stelrad's resilient business model
- UK & Ireland: 6.5% revenue growth (pre-IAS 29), 5.2% growth in adjusted operating profit
- Europe: 25.3% (-0.8% organic) revenue growth (pre-IAS 29), 7.3% growth in adjusted operating profit
- Turkey & International: 6.4% (3.1% organic) revenue growth (pre-IAS 29), 29.1% reduction in adjusted operating profit
• Contribution per radiator (pre-IAS 29) increased by 16.5% (18.6% like-for-like increase), more than offsetting a 9.2% year on year sales volume decline (15.3% like-for-like decline) versus exceptionally strong comparatives in 2021
• Improved performance underpinned by proactive margin management and operational improvements across the business
• Completion of two further production line transfers from Western European plants to lower cost Turkish facility in the period
• Acquisition of Italian manufacturer of heat emitters DL Radiators for €28.3 million in July 2022
• Continued to strengthen our market position, thanks to strong, long-lasting customer relationships, market-leading product availability and customer service and product innovation
(1)
• Recommended final dividend of 4.72 pence per share, to be paid on 26 May 2023
Adjusted figures are stated before the impact of IAS 29, exceptional items, amortisation of customer relationships and foreign exchange differences and tax thereon where applicable.
GOVERNANCE REPORT
57 Chair's introduction to governance
58 Board of Directors
60 Statement of corporate governance
64 Audit & Risk Committee Report
68 Nomination Committee Report
70 Directors' Remuneration Report
84 Directors' Report
FINANCIAL STATEMENTS
88 Independent auditors' report to the members of Stelrad Group plc
93 Consolidated income statement
94 Consolidated statement of comprehensive income
95 Consolidated balance sheet
96 Consolidated statement of changes in equity
97 Consolidated statement of cash flows
98 Notes to the consolidated financial statements
131 Company balance sheet
132 Company statement of changes in equity
133 Notes to the Company financial statements
ADDITIONAL INFORMATION 137 Shareholder Information
STRATEGIC REPORT
At a glance
We are a leading radiator manufacturer, helping to heat homes sustainably
Our heat emitters transform people's experience of their worlds
Standard steel panel radiators
Premium steel panel and low surface temperature steel panel radiators
Towel warmers
Decorative steel tubular and column radiators
Electric, hybrid and dual fuel radiators
An important long-term player in the global radiator market
500+ 40+ 1,500+
customers countries people
• Head office
• Manufacturing, distribution and sales
• Distribution warehouse
• Sales presence
02
1 Head office
Our international presence is significant and growing
Newcastle upon Tyne, UK
2 UK Radiators Mexborough, UK
3 Continental Radiators Nuth, Netherlands
4 Termo Teknik
Çorlu, Istanbul, Turkey
5 DL Radiators Moimacco, Italy
6 Hudevad Kolding, Denmark
7 Caradon Polska
Kraków, Poland
Stelrad has well-invested, state-of-the-art manufacturing facilities supported by market-leading distribution centres, designed to provide our customers with high levels of service and product availability wherever they are based and supported by an extensive sales and marketing network. In July 2022, our operational footprint grew, following the acquisition of DL Radiators in Moimacco, Italy (see page 16).
£25.3m
Number1 brand in the Netherlands Henrad is a channel differentiated European brand with a particularly strong presence in the Netherlands, Belgium, the UK and France.
Number 5 brand in Turkey
Sold primarily into Turkey and Eastern European markets, Termo Teknik offers a high quality to cost ratio.
High-end design brand
Hudevad represents the best of Danish design, a favourite brand of architects, interior designers and commercial specifiers.
An ESG strategy fit for the future
Our strategy is aligned with and depends up on the responsible treatment of both stakeholders and the environment. Consistent with our core purpose, helping to heat homes sustainably,
Stelrad's sustainability framework reflects our vision of the significant role we can play in facilitating the transition to a low and zero carbon heating industry.
Fit for the Future comprises two strategic pillars.
The first will focus on reducing our impact on the environment whilst also engaging, educating and influencing others to achieve an effective transition to the heating systems of the future. The second enables our people to contribute positively to delivering our strategy and our sustainability objectives. Fundamental issues such as safety, governance and supply chain management underpin the achievement of these objectives.
Our framework sets out our approach to delivering our business strategy whilst also delivering on our sustainability commitments to stakeholders and the environment.
Advanced technology, Italian innovation DL Radiators is a brand blending style and innovation, employing advanced heat emission technologies suitable for a wide variety of heat sources and heating systems.
FIT FR THE
FUTURE
» Read more in the Sustainability section on page 26
Annual Report 2022 Stelrad Group plc
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Stelrad Group plc published this content on 28 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 March 2023 10:38:04 UTC.