Stelrad Group PLC on Monday said its profit doubled in the first half of 2023, alongside rising revenue, while it maintained its full-year outlook and declared an unchanged dividend to shareholders.

In the six months that ended June 30, the Newcastle-based manufacturer and distributor of steel panel radiators said pretax profit more than doubled to £10.3 million from £4.7 million a year earlier.

Revenue was up 4.6% to £157.0 million from £150.1 million, a record amount.

On a pre-IAS 29 accounting basis, revenue was up 6.2% to £157.0 million from £147.8 million.

As a result of inflation in Turkey exceeding 100% over a three-year period, Stelrad was required to adopt IAS 29 in respect of its Turkish subsidiary during the first half period.

At the start of 2023, the functional currency of the Turkish business was changed from Turkish lira to euros, meaning IAS 29 is no longer being applied after this date.

In Uk & Ireland, pre-IAS 29 revenue was down 0.7% or 1.0% on an organic basis, up 20% or down 22% organically in Europe, and down 24% or 30% organically in Turkey & International.

Stelrad declared an interim dividend of 2.92 pence each to shareholders, unchanged from a year earlier and which it said reflected the board’s confidence in the group’s prospects and balance sheet.

Looking ahead, Stelrad’s full-year outlook remains unchanged and it is confident in its long-term growth plans.

It expects to launch a new electric range in the UK in the second half of 2023.

‘Despite challenging macroeconomic conditions across a number of countries, Stelrad’s leading positions mean that the group remains well placed to outperform the market and deliver on its full year expectations,’ said Chief Executive Officer Trevor Harvey. He said this followed a ‘pivotal’ first year as a public limited company in 2022.

‘Our focus remains on our key objectives of growing market share, improving product mix, optimising routes to market and positioning effectively for decarbonisation...The resilience of our business model, alongside our experience of navigating previous market downturns, means that the group is well positioned to capitalise once markets improve.’

Harvey continued: ‘Regardless of the near term headwinds facing the wider sector, the increasing need for decarbonised, energy efficient heating systems remains unchanged and underpins our confidence in our ability to drive long-term shareholder value.’

Shares in Stelrad were up 6.2% to 120.00 pence each in London on Monday morning.

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