Radiator manufacturer and distributor Stelrad Group reports its financial results are testament to its resilience, in its trading update for 12 months ended 31 December 2022.

Despite challenging conditions, group revenue for the year ended 31 December 2022 was around £312million, representing circa 15% growth on the previous year.

It included the benefit of sales from the acquisition of Italian manufacturer DL Radiators in 2022.

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Revenue growth was 3% on a like-for-like basis and the board expected to deliver a record adjusted operating profit of around £34million.

According to the company, its focus on margin management and operational improvements has “more than” offset the impact of a decrease in volumes during the period, resulting in a strong increase in contribution per radiator.

Stelrad Group reported integration of DL Radiators has progressed and complemented Stelrad’s core markets and channels, with a new production line being commissioned in the Italian factory.

In addition, Stelrad Group reported two further refurbished lines were fully operational in its Turkish factory during 2022.

It stated rising energy costs across Europe and the drive towards decarbonisation are expected to underpin long-term demand for the Group’s products.

Together with the “strength and breadth” of the Group’s customer and supplier relationships, Stelrad states the Group has entered 2023 with a high degree of resilience.

Although the board remains mindful of prevailing market headwinds and continues to monitor events closely, Stelrad Group states it is well positioned and prepared for challenging trading conditions during 2023.

Chief executive of Stelrad Trevor Harvey commented: “Despite well-publicised macroeconomic headwinds in our end markets, the Group performed broadly in line with its expectations in 2022, a testament to the resilience of our business model and market position, the robustness of our strategy and the dedication of our team.

“We have more than offset a decline in volumes with proactive margin management initiatives, while the acquisition of DL Radiators offers considerable potential for the future by extending our range of heat emitters and providing access to new markets and channels.

“We remain committed to our strategic objectives of growing market share, improving product mix, optimising routes to market, and positioning the business for decarbonisation, and, while we anticipate 2023 will be more challenging with further reductions in market size likely, we have proven that the strength of our business can meet these challenges and continue to deliver long-term value for all of our stakeholders.”

The group intends to issue its full year Preliminary Announcement on March 13, 2023.