Interim report
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RNS Number : 6555P Stelrad Group PLC 07 August 2026 Stelrad Group plc Stelrad Group plc ( " Stelrad " or " the Group " or " the Company " ) Interim results for the six months ended 30 June 2026 Operational delivery , profit growth and margin expansion with outlook for the full year unchanged Stelrad Group , a leading specialist manufacturer and distributor of steel panel and other designer radiators in the UK , Europe and Turkey , today announces its unaudited interim results for the six months ended 30 June 2026 . Results summary Six months ended 30 June 2025 Movement % Six months ended 30 June 2026 Revenue , £ m Operating profit , £ m 124.0 136.5 15.7 3.8 ( 9.1 ) 307.6 Operating profit margin , % 12.6 2.8 9.8 ppts Profit / ( loss ) for the period , £ m 8.7 ( 3.4 ) 351.3 Earnings / ( loss ) per share - basic , pence 6.80 ( 2.71 ) 351.3 Exceptional items , £ m ( 1.0 ) ( 12.0 ) 91.4 Adjusted operating profit , £ m ( 1 ) 16.7 15.9 4.9 Adjusted operating profit margin , % ( 1 ) 13.5 11.7 1.8 ppts Adjusted profit for the period , £ m ( 1 ) 9.5 8.2 16.0 Adjusted earnings per share - basic , ( 1 ) 7.43 6.41 pence Free cash flow , £ m ( 1 ) ( 0.2 ) 1.8 16.0 ( 112.3 ) Return on capital employed , % 29.0 26.9 2.1 ppts Net debt before lease liabilities , £ m 57.5 64.8 ( 11.2 ) Dividend per share , pence 3.19 3.04 5 ( 1 ) The Group uses some alternative performance measures to track and assess the underlying performance of the business . Alternative performance measures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement . Operational excellence and market mix offsetting challenging market conditions Adjusted operating profit rose to £ 16.7 million , an increase of 4.9 % , benefitting from the successful delivery of our commercial and operational initiatives , which have further enhanced profitability and offset market weakness . Adjusted operating profit margin increased 1.8 ppts to 13.5 % . Statutory operating profit was £ 15.7 million , after exceptional items of £ 1.0 million ( 2025 : £ 3.8 million , after £ 12.0 million non - cash exceptional items ) . Adjusted earnings per share rose by 16 % supported by adjusted operating profit growth and reduced interest costs . Contribution per radiator increased to £ 24.32 ( 2025 : £ 20.33 ) , benefitting from operational control initiatives , the one - off exit from a loss - making contract at the end of 2025 and market - driven reduced volumes in some lower margin territories and market sectors . Contribution per radiator is expected to move towards our sustainable medium - term target of > £ 21 , reflecting our intention to grow volume in select territories , leveraged by our cost leadership . Revenue declined 9.1 % to £ 124.0 million due to a 14.6 % decline in sales volumes during the period , including the exit from a loss - making contract , offset in part by selling price benefits . ○ UK & Ireland : revenue declined 4.0 % due to a 6.6 % volume reduction , reflecting the continued weakness in new build housing and RMI , offset in part by selling price increases driven by steel price increases . ○ Europe : revenue declined 7.4 % as a result of reduced market volumes and the exit from a loss - making contract ( c . £ 5.0 million revenue impact ) , with beneficial market mix offsetting adverse market demand in some geographies . ○ Turkey & International : revenue declined 60.6 % , to £ 3.4 million , the result of a commercial decision to reduce sales to the Turkish market in the period . Free cash outflow of £ 0.2m ( 2025 : free cash inflow of £ 1.8m ) , because of a typical seasonal working capital high point . This is due to investments in working capital to enhance service levels across our end markets , alongside higher tax paid , partially offset by lower interest payments . Return on capital employed increased by 2.1 ppts to 29.0 % ( 2025 : 26.9 % ) . Leverage at 30 June 2026 was 1.29x ( 31 December 2025 : 1.16x ; 30 June 2025 : 1.48x ) , based on net debt before lease liabilities , with further de - leveraging expected in the second half . Interim dividend increased by 5 % to 3.19 pence per share ( 2025 interim dividend : 3.04 pence per share ) , to be paid on 23 October 2026 , reflecting the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation .
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Well positioned for growth · The commercial and operational initiatives undertaken in 2025 have further optimised our cost base and driven progress in 2026 despite challenging market conditions.· On Time In Full (OTIF) delivery was 98.5% (2025: 99%) in the UK & Ireland, a key strength of our business and a point of differentiation versus our competitors. · Stelrad is the clear leader of the steel panel radiator market, with a combined 2025 share of 24.0%(1) (2024: 24.4%), retaining a 3.9 ppts lead over our nearest competitors. Minor share reduction in 2025 was driven by the specific marketmix across the countries we serve.· The financial strength of the business and its geographically diversified end markets sees Stelrad well positioned and competitively placed to target market share gains in selected markets. Outlook · Proactive margin management and cost discipline has positioned the Group well to continue to deliver in the current environment, though we remain mindful of the continuation of cost inflation and ongoing weakness in our end markets.· Trading in the second half to date has been in line with our expectations and the outlook for the full year remains unchanged.· Whilst there remains a level of uncertainty around the timing of a wider market recovery, we remain confident in Stelrad's ability to capitalise on the attractiveness of our geographically diversified end markets, underpinned by long- term structural growth drivers, and the opportunities that a market recovery present for a stronger, more agile Stelrad. Commenting on the Group's performance, Trevor Harvey, Chief Executive Officer, said: "During the period, we delivered a strong financial performance against a backdrop of ongoing economic uncertaintysuppressing volumes in the Group's key markets. Crucially, despite this environment, we have maintained our marketleadership position and continued to optimise our cost base. "The Board remains confident in its strategic pillars and in driving continued shareholder value. Our operational excellenceinitiatives, underpinned by our competitive advantages and market positioning, mean that Stelrad remains well-placed to target market share gains across the geographies in which we operate." For further information: Stelrad Group plcTrevor Harvey, Chief Executive Officer Leigh Wilcox, Chief Financial Officer +44 (0) 191 261 3301 Investec (Joint Corporate Broker) Ben Griffiths / Lydia Zychowska +44 (0) 207 597 4000 Singer Capital Markets (Joint Corporate Broker) Graham Hertrich / Sara Hale / James Todd +44 (0) 20 7496 3000 Sodali & Co James White / Pete Lambie stelrad@sodali.com +44 (0)7855 432699 Notes to Editors Stelrad Group plc is Europe's leading specialist radiator manufacturer, selling an extensive range of hydronic, hybrid, dual fueland electrical heat emitters to more than 500 customers in over 40 countries. These include standard, premium and low surfacetemperature (LST) steel panel radiators, towel warmers, decorative steel tubular, steel multicolumn and aluminium radiators. The Group has five main brands: Stelrad, Henrad, Termo Teknik, DL Radiators and Hudevad. In the 2025 data for 22European countries reported by BRG Building Solutions in May 2026 (excluding Russia), Stelrad consolidated its market leadership position with 24.0% share overall. The Group is #1 in seven countries including UK, France, Belgium,Netherlands and Denmark and holds Top 3 position in seven more. Stelrad is headquartered in Newcastle upon Tyne in the UK and in 2025 employed 1,300 people, with manufacturing and distribution facilities in Çorlu (Turkey), Mexborough (UK), Moimacco (Italy) and Nuth (Netherlands), with a furthercommercial and distribution operation in Krakow (Poland). The Group's origins date back to the 1930s and Stelrad enjoys long established commercial relationships with many of itscustomers, having served each of its top five current customers for over twenty years. Further information can be found at: https://stelradplc.com/. (1) BRG Building Solutions May 2026: 22 European countries for which 2025 data is available (excluding Russia), representing 97% of the 2024 market reported. FORWARD-LOOKING STATEMENTSThis document may contain forward-looking statements which are made in good faith and are based on current expectations orbeliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use ofa date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may","assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative andinvolve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Youshould not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and aresubject to factors that could cause our actual results to differ materially from those expressed or implied by these statements.The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as aresult of new information, future events or otherwise. CHIEF EXECUTIVE OFFICER'S REVIEWContinued strategic progress in a suppressed volume environment
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Over the first half, Stelrad continued to perform strongly during a period that saw a continuation of the market dynamics thatwe have seen over recent years, with further declines in market volume across our core territories. This performance is testament to the strategic and operational progress we have made over recent years, further embeddingcommercial excellence throughout the organisation and enhancing the efficiency of our operations. Crucially, we have worked to ensure that this activity protects and enhances our competitive advantages. While continuouslyimproving and optimising our operations, the Group is focused on ensuring that we are well positioned to capture the benefits of a market recovery, maintaining our cost advantage and leading customer proposition, both of which underpin our sustainedleadership position across diversified end markets. This market leadership provides specific market share opportunities, positions Stelrad as a key beneficiary of a marketrecovery and allows us to drive longer-term structural trends that will deliver above-market growth for Stelrad. This includesboth premiumisation, with the continued adoption of designer radiators, and decarbonisation, with a growing market for larger, higher heat output conventional radiators, hybrid radiator products and electric radiator ranges. During the period, the Group saw further volume declines of 14.6%. This primarily reflects weakness in some of our core territories including the UK & Ireland (-6.6%), reflecting the continued weakness in new build housing and RMI, Europe(-14.4%) and our smaller segment of Turkey & International (-61.8%). Within Europe, there were notable volume declines inGermany, reflecting the Group's focus on commercial excellence and the decision to exit a loss-making contract, and France, where there has been a notable decline in higher-volume, lower margin segments of the market. The pro-active decision to exitthe loss-making German contract has underpinned operating margin improvements in our European segment. For Turkey &International, the reduction is the result of a commercial decision to reduce sales to the Turkish market during the period. Reflecting our continued market leadership and ability to drive mix improvement, we successfully offset some of the impacton revenue caused by the subdued volume environment, with the Group's revenue declining by 9.1% to £124.0 million (2025: £136.5 million). Reflecting the beneficial mix from both volume declines and our commercial excellence, in combination with the cost optimisation and operational excellence initiatives that Stelrad has delivered over the last few years, we continued to grow ouradjusted operating profit margin, which increased 1.8ppts to 13.5%, in line with our medium term target, and delivered anadjusted operating profit increase of 4.9% during the period to £16.7 million (2025: £15.9 million). Continued strategic progressAgainst this backdrop, Stelrad has clear, consistent strategic objectives of:1. Growing our market share 2. Improving our product mix3. Optimising our routes to market4. Positioning effectively for decarbonisation These objectives are interconnected and in combination with our competitive advantages, provide a platform for the Group'sfuture sustainable growth. Progress against each must be carefully balanced to ensure we maintain our competitive cost advantage, which is underpinned by the operating leverage within our manufacturing sites and positions us to capitalise onspecific market share opportunities and the recovery in our end markets as it materialises. Stelrad is the clear leader of the steel panel radiator market, with a combined 2025 share of 24.0%(1) (2024: 24.4%), retaining a 3.9 ppts lead over our nearest competitors. Minor share reduction in 2025 was driven by the specific market mix across thecountries we serve. Pleasingly, we have further consolidated our leading market positions across our ten core markets. 2025 Market Market volume '000 Stelrad share Stelrad position UK 4,500 51.3% #1 Turkey 4,200 8.3% #4 Germany 1,940 13.7% #3 France 1,262 35.9% #1 Poland 1,191 10.2% #2 Belgium 390 44.1% #1 Sweden 380 15.9% #2 Netherlands 344 49.6% #1 Ireland 250 34.9% #2 Denmark 203 51.4% #1 Core 10 14,660 27.9% #1 The strength of our leading market position is facilitated by our leading customer service and product availability, which we have continued to maintain, with an On Time In Full delivery rate of 98.5% in the UK. We have continued to protect and improve our product mix throughout the current market downturn, reflecting the progress we have made in our premiumisation and decarbonisation strategic initiatives, despite the headwinds created by the currenteconomic environment. The penetration of premium panel volumes remained solid during the period, with a further increasein total proportion of premium panel sales increasing by 0.1% to 6.2%. The embedding of commercial excellence across our operations and the exit from a loss-making European contract haveimproved our margins further, with a notable impact in this half.
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This, combined with optimisation programmes across the Group's operations, most recently in Turkey, has allowed us to offsetthe impact of the volume downturn on the Group's operating profit margin, with our contribution per radiator KPI reaching £24 for this half. We expect contribution per radiator to move towards our sustainable medium-term target of >£21, reflectingour intention to grow volumes in select territories, leveraged by our cost leadership. Interim dividendThe Board has declared an interim dividend of 3.19 pence per share, an increase of 5%. The interim dividend will be paid on23 October 2026 to shareholders on the register on 9 October 2026. This increase reflects the strength of the Group's balance sheet and the Board's confidence in the Group's future growth prospects and increasing cash generation. Outlook Proactive margin management and cost discipline has positioned the Group well to continue to deliver in the currentenvironment, though we remain mindful of the continuation of cost inflation and ongoing weakness in our end markets. Trading in the second half to date has been in line with our expectations and the outlook for the full year remains unchanged. Whilst there remains a level of uncertainty around the timing of a wider market recovery, we remain confident in Stelrad's ability to capitalise on the attractiveness of our geographically diversified end markets, underpinned by long-term structuralgrowth drivers, and the opportunities that a market recovery present for a stronger, more agile Stelrad. Trevor HarveyChief Executive Officer7 August 2026 (1) BRG Building Solutions May 2026 FINANCE AND BUSINESS REVIEW Group overview The following table summarises the Group's results from operations for the six months ended 30 June 2026 and 30 June 2025. Six monthsended 30 June2026 Six monthsended 30 June2025 Movement Movement £m £m £m %Revenue 124.0 136.5 (12.5) (9.1) EBITDA(1) 22.4 21.8 0.6 2.9 Adjusted operating profit(1) 16.7 15.9 0.8 4.9 Exceptional items (1.0) (12.0) 11.0 91.4Amortisation of customer relationships- (0.1) 0.1 n/a Operating profit 15.7 3.8 11.9 307.6Net finance costs (2.6) (3.7) 1.1 31.9Profit before tax 13.1 0.1 13.0 13,287.8Income tax expense (4.4) (3.5) (0.9) (25.9) Profit/(loss) for the period 8.7 (3.4) 12.1 351.3 Earnings/(loss) per share - basic (p) 6.80 (2.71) 9.51 351.3 Adjusted profit for the period(1) 9.5 8.2 1.3 16.0 Adjusted earnings per share - basic (p)(1) 7.43 6.41 1.02 16.0 Dividend per share (p) 3.19 3.04 0.15 5 Return on capital employed (%)(1) 29.0 26.9 n/a 2.1 ppts Net debt before lease liabilities(1) 57.5 64.8 (7.3) (11.2) (1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performancemeasures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement. Financial overviewThe first half saw a strong operating performance with benefits from the successful delivery of our commercial and operational initiatives enabling the Group to more than offset the impact of ongoing reduction in demand. Whilst there werepositive year-on-year trends across some of our core European geographies, UK & Ireland continued to see subduedrenovation activity driven by a challenging macroeconomic environment and lower consumer confidence. Volumes in the French market have also been subdued in the first half of 2026, in part due to overstocking by customers in 2025. Revenue for the six months ended 30 June 2026 was £124.0 million, a decrease of £12.5 million, or 9.1%, on the six months ended 30 June 2025 (2025: £136.5 million). The decline in revenue was mainly due to a 14.6% decline in sales volumesduring the period, offset in part by selling price benefits. Volume reductions were significantly impacted by the exit from aloss-making contract at the end of 2025 (c. £5.0 million revenue impact) and commercial strategy to reduce sales volumes in some lower margin territories (c. £4.0m revenue impact in Turkey), as well as market demand remaining subdued. Adjusted operating profit for the period was £16.7 million, an increase of £0.8 million, or 4.9%, compared to the same period last year (2025: £15.9 million). The increase in adjusted operating profit arose despite the 14.6% decrease in sales volumes.Adjusted operating profit margin of 13.5% (2025: 11.7%) has been positively impacted by the exit from a loss-makingcontract and reduced volumes to some lower margin territories and market sectors. Statutory operating profit for the period was £15.7 million, an increase of £11.9 million, or 307.6%, compared to the prioryear (2025: £3.8 million). Statutory operating profit is stated after the deduction of exceptional items of £1.0 million related to redundancy costs in our Turkish business (2025: exceptional items of £12.0 million related to an impairment charge on theassets of Radiators SpA) and the amortisation of customer relationships of £nil (2025: £0.1 million).
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Contribution per radiator has increased significantly to £24.32 (2025: £20.33), benefitting from continued operational control and margin management initiatives, the exit from a loss-making contract and, crucially, due to subdued volumes in somelower margin territories and market sectors. The favourable market and mix trends seen in the first half of 2026 are notexpected to continue in the event of a wider market recovery. The Group continues to focus on the sale of premium products throughout its markets, recognising the additional margin thatthese products generate. Year-on-year, the proportion of premium panel sales to total steel panel volumes increased by 0.1 ppts to 6.2%, with further progress expected as the economic environment improves. The statutory profit for the period was £8.7 million (2025: loss of £3.4 million, due to exceptional items of £12.0 million). Adjusted profit for the period grew by £1.3 million to £9.5 million (2025: £8.2 million). Interest charges reduced by £1.1million year-on-year as levels of debt continue to fall in conjunction with lower average interest rates. Tax charges increasedyear-on-year due to an increase in underlying earnings and the impact of tax credits on exceptional items in the first half of 2025; the adjusted effective tax rate remains consistent year-on-year. Basic earnings per share was 6.80 pence (2025: loss per share 2.71 pence). Basic adjusted earnings per share was 7.43 pence (2025: 6.41 pence). At 30 June 2026 the Group had cash of £17.6 million (31 December 2025: £19.0 million; 30 June 2025: £17.6 million) and undrawn available facilities of £25.3 million (31 December 2025: £30.6 million; 30 June 2025: £17.9 million), with net debtbefore lease liabilities of £57.5 million (31 December 2025: £51.1 million; 30 June 2025: £64.8 million). Working capital at 30 June 2026 reflects a seasonal high point prior to the heating season, with the lowest level of workingcapital historically experienced in December. Investments in working capital have been made in the period to increasewarehouse stocking in our Turkish facility in order to enhance customer relationships in our end markets. The Group expects a reduction in net debt by the end of the financial year, reflecting the seasonality of working capital investment. The Group has made pleasing progress towards its medium-term targets in the period, despite challenging market conditions, with growth in adjusted operating profit margins, contribution per radiator and return on capital employed. The targets forcontribution per radiator, operating profit margin and adjusted operating cash flow conversion (on an LTM basis) have beenmet at 30 June 2026. The Board remain confident in the ability for the Group to achieve all medium-term targets, however, note that the operating profit margins and contribution per radiator targets have temporarily benefited from weak marketconditions in some lower margin territories and market sectors. The board remains confident that these targets are sustainablein the medium-term. Revenue by geographical marketThe table below sets out the Group's revenue by geographical market. Revenue by geographical marketSix months ended30 June 2026 Six monthsended 30 June2025 Movement Movement £m £m £m %UK & Ireland 62.4 65.1 (2.7) (4.0)Europe 58.2 62.9 (4.7) (7.4)Turkey & International 3.4 8.5 (5.1) (60.6)Total 124.0 136.5 (12.5) (9.1) UK & IrelandThe Group's revenue in the UK & Ireland for the period was £62.4 million (2025: £65.1 million), a decrease of £2.7 million,or 4.0%. This was principally a result of a decrease in sales volumes of 6.6%, partially offset by selling price increases andmarket mix benefits resulting from a supressed new build environment. EuropeThe Group's revenue in Europe for the period was £58.2 million (2025: £62.9 million), a decrease of £4.7 million, or 7.4%, as a result of a 14.4% decrease in sales volumes, partially offset by the impact of lower average Euro exchange rates in theperiod and favourable sales mix. Sales mix has benefitted from the exit from a loss-making contract (c. £5.0 million revenueimpact) and subdued volumes in the French market, due in part to overstocking by customers in 2025, both of which have lower average selling prices per unit. Encouragingly, we note certain key geographies in Europe have shown a year-on-yearincrease in volumes, including the Netherlands, Sweden, Poland and Denmark, with Europe showing broader stability inrecent periods. Turkey & InternationalThe Group's revenue in Turkey & International for the period was £3.4 million (2025: £8.5 million), a decrease of £5.1 million, or 60.6%. This was principally a result of lower volumes sold in Turkey (c. £4.0 million revenue impact), driven bycommercial strategy to reduce sales volumes in this lower margin territory. Adjusted operating profit by geographical marketThe table below sets out the Group's adjusted operating profit by geographical market. Adjusted operating profit bygeographical market Six months ended30 June 2026 Six monthsended 30 June2025 Movement Movement £m £m £m %UK & Ireland 14.1 15.0 (0.9) (6.3)Europe 6.3 3.6 2.7 76.3Turkey & International 0.2 0.7 (0.5) (65.6)Central costs (3.9) (3.4) (0.5) (14.5) Total 16.7 15.9 0.8 4.9
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UK & IrelandThe Group's adjusted operating profit in the UK & Ireland for the period was £14.1 million (2025: £15.0 million), a decrease of £0.9 million, or 6.3%, driven largely by the revenue reduction of 4.0%. Contribution per radiator has improved year-on-year, benefitting from good margin management, but the impact of adverse volumes on a stable fixed cost base has reducedthe adjusted operating profit. EuropeThe Group's adjusted operating profit in Europe for the period was £6.3 million (2025: £3.6 million), an increase of £2.7million, or 76.3%. This is impacted significantly by the exit from a loss-making contract at the end of 2025 and subdued volumes in the low-margin French market, due in part to overstocking by customers in 2025. Additionally, positive trendshave been seen in some profitable markets such as the Netherlands and Poland. Turkey & InternationalThe Group's adjusted operating profit in Turkey & International for the period was £0.2 million (2025: £0.7 million), adecrease of £0.5 million, or 65.6%. The decrease is driven by volume reductions linked to commercial strategy. Central costsCentral costs, including Group share-based payment charges, for the period were £3.9 million (2025: £3.4 million), an increase of £0.5 million, or 14.5%. Exceptional items During the six months ended 30 June 2026, operating profit is stated after exceptional items of £1.0 million related toredundancy costs in our Turkish business. The costs were incurred to right size the business in light of reduced marketdemand. In comparison, during the six months ended 30 June 2025, operating profit is stated after exceptional items of £12.0 million.The non-cash exceptional items relate to impairment of goodwill of £2.6 million, impairment of customer relationships of £1.4 million, impairment of property, plant and equipment of £5.7 million and a provision against inventories of £2.3 million, allwithin the Radiators SpA business. Finance costsThe Group's finance costs for the period were £2.6 million (2025: £3.7 million). The decrease of £1.1 million is due to lowerlevels of debt in the first half of 2026 and comparatively lower average interest rates year-on-year (4.5% in the first half of 2026 compared to 5.6% in the first half of 2025). Income tax expenseThe Group's income tax expense for the period was £4.4 million (2025: £3.5 million), an increase of £0.9 million. The year- on-year increase in the tax charge is due to an increase in underlying earnings and the impact of tax credits on exceptionalitems in the first half of 2025. The adjusted effective tax rate remains consistent year-on-year. Earnings/(loss) per share and adjusted earnings per shareAdjusted profit for the period increased to £9.5 million (2025: £8.2 million) and consequently basic adjusted earnings pershare was 7.43 pence (2025: 6.41 pence). Results for the period increased to a profit of £8.7 million (2025: loss of £3.4m) and basic earnings per share was 6.80 pence(2025: loss per share 2.71 pence) due to the impact of the exceptional items, net of tax, of £0.8 million in the period (2025: £11.6 million). The basic weighted average number of shares was 127.4 million (2025: 127.4 million). Dividend The Group is committed to delivering returns for its shareholders via a progressive dividend policy. The Board has confidencein the Group's financial position and believes that its leading market positions, regulatory tailwinds, product premiumisationupside and favourable contribution per radiator will lead to strong future financial performance. On this basis, the Group recommends payment of an interim dividend of 3.19 pence per share (2025: 3.04 pence per share), an increase of 5% on the2025 interim dividend, on 23 October 2026 to shareholders on the register on 9 October 2026. The Group paid its final dividend for 2025 of 5.05 pence per share in May 2026, resulting in a total dividend for 2025 of 8.09pence per share. Cash flowsThe following table summarises the Group's cash flow for the six months ended 30 June 2026 and 30 June 2025. Six months ended 30June 2026 Six months ended 30June 2025 Movement £m £m £mEBITDA 22.4 21.8 0.6Exceptional items (1.0) - (1.0)Gain on disposal of property, plant and equipment(0.1) (0.1) -Share-based payment charge - net of settled 0.4 0.6 (0.2)Working capital (11.0) (9.0) (2.0) Net capital expenditure (3.5) (3.7) 0.2 Cash flow from operations(1) 7.2 9.6 (2.4) Income tax paid (5.5) (4.8) (0.7)Net interest paid (1.9) (3.0) 1.1 Free cash flow(1) (0.2) 1.8 (2.0) Cash flow from operations 7.2 9.6 (2.4)Adjusted forExceptional items 1.0 - 1.0Exceptional items, impact on working capital(0.9) - (0.9) Adjusted cash flow from operations 7.3 9.6 (2.3)
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Six months ended 30June 2026 Six months ended 30June 2025 Movement Adjusted cash flow from operations(1) (£m) 7.3 9.6 (2.3) Adjusted operating profit(1) (£m) 16.7 15.9 0.8 Adjusted cash flow from operations conversion(1) (%) 43.9 60.5 (16.6)ppts (1) The Group uses some alternative performance measures to track and assess the underlying performance of the business. Alternative performancemeasures are defined in the glossary of terms and reconciled to the appropriate financial statements line item at the end of this announcement. The Group's free cash outflow for the period was £0.2 million (2025: inflow of £1.8 million), a decrease of £2.0 million. Thisreflects investments in working capital and higher tax paid, partially offset by lower interest payments. The Group's adjusted cash flow from operations for the period was £7.3 million (2025: £9.6 million), a decrease of £2.3million. Adjusted operating profit for the period was £16.7 million (2025: £15.9 million), an increase of £0.8 million. Adjustedcash flow from operations conversion for the period was 43.9% (2025: 60.5%). Adjusted cash flow conversion is expected to improve in the second half of the year due to the timing of working capital movements. Capital expenditures The Group's capital expenditures mainly relate to investment in operating plant and equipment. Key capital expenditure in theperiod ended 30 June 2026 related to various maintenance and upgrade projects. Capital expenditure for the remainder of2026 will be in line with expectations. Return on capital employed and capital allocation prioritiesReturn on capital employed for the period was 29.0% (2025: 26.9%), an increase of 2.1 ppts. This improvement is due to an increase in adjusted operating profit and lower fixed asset balances year-on-year. Capital allocation considerations remain high on the Group's agenda, and both the 2025 and 2026 investments in working capital are considered a key part of the Group's prioritisation of investment for organic growth under its capital allocationframework set out at the Capital Markets Event in November 2024. Additionally, dividends have progressively increased by5%, whilst the Group's debt leverage ratio before lease liabilities has reduced to 1.29x (30 June 2025: 1.48x), demonstrating a controlled and balanced approach to capital allocation and balance sheet prudence given the challenging macroeconomicenvironment over an extended period. Net debt and leverageAt 30 June 2026, net debt (including lease liabilities) of £64.1 million (31 December 2025: £58.7 million) comprises £75.1million (31 December 2025: £70.1 million) drawn down against the multicurrency facility and £6.6 million (31 December 2025: £7.6 million) lease liabilities net of £17.6 million (December 2025: £19.0 million) cash. 30 June2026 31 December2025£m £mRevolving credit facility - GBP 25.9 32.3Revolving credit facility - EUR 24.8 13.1Term loan 24.4 24.7 Cash (17.6) (19.0) Net debt before lease liabilities 57.5 51.1Lease liabilities 6.6 7.6 Net debt 64.1 58.7 EBITDA (rolling 12 months) 44.5 44.1 Debt leverage ratio before lease liabilities 1.29x 1.16x The debt leverage ratio before lease liabilities at 30 June 2026 was 1.29x (31 December 2025: 1.16x; 30 June 2025: 1.48x). Going concernAfter reviewing the Group's current liquidity, net debt, financial forecasts and stress testing of potential risks, the Board confirms there are no material uncertainties which impact the Group's ability to continue as a going concern for at least twelvemonths from the date of approval of the financial statements and therefore these condensed consolidated interim financialstatements have been prepared on a going concern basis. The financial position of the Group remains robust. The Group has in place a £100 million multicurrency facility, made up ofa £76.0 million revolving credit facility and a €28.3 million term loan facility. At 30 June 2026, the entire term loan was drawn along with £50.7 million of the revolving credit facility. The facility matures in December 2028, with an extension option for two further years. Leigh WilcoxChief Financial Officer7 August 2026 STATEMENT OF DIRECTORS' RESPONSIBILITIESThe directors confirm that these condensed consolidated interim financial statements have been prepared in accordance withUK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance andTransparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and that the interim management reportincludes a fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely: · an indication of important events that have occurred during the first six months and their impact on the condensed set of financial statements, and a description of the principal risks and uncertainties for the remaining six months ofthe financial year; and
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· material related party transactions in the first six months and any material changes in the related party transactionsdescribed in the last annual report. The directors of Stelrad Group plc who served during the six months ended 30 June 2026 and up to the date of signing ofthese condensed consolidated interim financial statements were as follows: Martyn Coffey (appointed on 1 May 2026)Trevor HarveyLeigh WilcoxBob EllisEdmund LazarusKatherine Innes KerNicola BruceStuart Watson (appointed on 19 June 2026)Nicholas Armstrong (resigned on 20 May 2026)Martin Payne (resigned on 20 May 2026) For and on behalf of the Board Leigh Wilcox Chief Financial Officer 7 August 2026 Stelrad Group plc. Registered number 13670010 INDEPENDENT REVIEW REPORT TO STELRAD GROUP PLC Report on the condensed consolidated interim financial statements Our conclusion We have reviewed Stelrad Group plc's condensed consolidated interim financial statements (the "interim financial statements") in the Interim results of Stelrad Group plc for the six month period ended 30 June 2026 (the "period"). Based on our review, nothing has come to our attention that causes us to believe that the interim financial statements are not prepared, in all material respects, in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. The interim financial statements comprise: ● the Condensed consolidated interim balance sheet as at 30 June 2026; ● the Condensed consolidated interim income statement and the Condensed consolidated interim statement of comprehensive income for the period then ended; ● the Condensed consolidated interim statement of cash flows for the period then ended; ● the Condensed consolidated interim statement of changes in equity for the period then ended; and ● the explanatory notes to the interim financial statements. The interim financial statements included in the Interim results of Stelrad Group plc have been prepared in accordance with UK adopted International Accounting Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. Basis for conclusion We conducted our review in accordance with International Standard on Review Engagements (UK) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Financial Reporting Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. We have read the other information contained in the Interim results and considered whether it contains any apparent misstatements or material inconsistencies with the information in the interim financial statements. Conclusions relating to going concern Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention to suggest that the directors have inappropriately adopted
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the going concern basis of accounting or that the directors have identified material uncertainties relating to going concern that are not appropriately disclosed. This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern. Responsibilities for the interim financial statements and the review Our responsibilities and those of the directors The Interim results, including the interim financial statements, is the responsibility of, and has been approved by the directors. The directors are responsible for preparing the Interim results in accordance with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority. In preparing the Interim results, including the interim financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so. Our responsibility is to express a conclusion on the interim financial statements in the Interim results based on our review. Our conclusion, including our Conclusions relating to going concern, is based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion paragraph of this report. Use of this report This report, including the conclusion, has been prepared for and only for the company for the purpose of complying with the Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's Financial Conduct Authority and for no other purpose. We do not, in giving this conclusion, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. PricewaterhouseCoopers LLPChartered Accountants Newcastle upon Tyne7 August 2026 Stelrad Group plcCondensed consolidated interim income statement for the six months ended 30 June 2026 Six monthsended 30 June2026(not audited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) Notes £'000 £'000 £'000Continuing operations Revenue 5 124,005 136,475 279,598 Cost of sales (80,434) (93,991) (193,327) Gross profit 43,571 42,484 86,271 Selling and distribution expenses (19,724) (19,699) (40,588)Administrative expenses (8,813) (8,788) (16,282) Other operating income/(expenses) 6 1,664 1,848 3,001Exceptional items 7 (1,028) (12,001) (14,925) Operating profit 5 15,670 3,844 17,477 Finance income 80 86 173Finance costs (2,630) (3,832) (7,576) Profit before tax 13,120 98 10,074 Income tax expense 8 (4,462) (3,543) (9,230) Profit/(loss) for the period 8,658 (3,445) 844 Notes Earnings/(loss) per shareBasic 9 6.80p (2.71)p 0.66pDiluted 9 6.79p (2.66)p 0.66p Stelrad Group plcCondensed consolidated interim statement of comprehensive income
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for the six months ended 30 June 2026 Six monthsended 30 June2026(not audited) Six monthsended 30 June2025 (notaudited) Year ended31 December2025 (audited) Notes £'000 £'000 £'000 Profit/(loss) for the period 8,658 (3,445) 844 Other comprehensive income/(expense) Other comprehensive (expense)/ income that may be reclassified toprofit or loss in subsequent periods: Net gain/(loss) on monetary items forming part of net investment inforeign operations and qualifying hedges of net investments in foreignoperations 510 (723) (916) Income tax effect 8 (128) 181 229 Exchange differences on translation of foreign operations (1,490) 3,300 5,009 Net other comprehensive (expense)/income that may be reclassifiedto profit or loss in subsequent periods (1,108) 2,758 4,322 Other comprehensive expense not to be reclassified to profit or loss insubsequent periods: Remeasurement losses on defined benefit plans (188) (63) (113)Income tax effect 8 47 16 28 Net other comprehensive expense not to be reclassified to profit orloss in subsequent periods (141) (47) (85) Other comprehensive (expense)/income for the period, net of tax (1,249) 2,711 4,237 Total comprehensive income/(expense) for the period, net of taxattributable to owners of the parent 7,409 (734) 5,081 Stelrad Group plc (Registered Number 13670010) Condensed consolidated interim balance sheet as at 30 June 2026 30 June 2026(not audited) 30 June 2025(not audited) 31 December 2025(audited) Notes £'000 £'000 £'000 AssetsNon-current assets Property, plant and equipment 68,732 73,781 72,491 Intangible assets 251 547 347Trade and other receivables 296 295 299 Deferred tax assets 5,441 6,241 4,836 74,720 80,864 77,973Current assetsInventories 70,656 69,786 62,402 Trade and other receivables 42,746 48,871 47,164 Income tax receivable 102 254 348 Financial assets 11 522 - -Cash and cash equivalents 17,576 17,572 18,978131,602 136,483 128,892 Total assets 206,322 217,347 206,865 Equity and liabilitiesEquityShare capital 127 127 127Merger reserve (114,469) (114,469) (114,469)Retained earnings 233,665 230,758 231,253 Foreign currency reserve (64,639) (65,095) (63,531) Total equity 54,684 51,321 53,380 Non-current liabilities Interest-bearing loans and borrowings 11 78,628 87,767 74,411 Deferred tax liabilities 222 217 222Provisions 1,728 1,800 1,832Net employee defined benefit liabilities 13 4,562 4,537 4,625 85,140 94,321 81,090Current liabilities Trade and other payables 60,814 67,635 67,058 Financial liabilities 11 - 505 221 Interest-bearing loans and borrowings 11 2,449 2,456 2,579 Income tax payable 961 418 1,466 Provisions 2,274 691 1,07166,498 71,705 72,395 Total liabilities 151,638 166,026 153,485Total equity and liabilities 206,322 217,347 206,865 The consolidated interim financial statements on pages 18 to 34 were approved by the Board of Directors on 7 August 2026and signed on its behalf by: Leigh Wilcox
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Chief Financial Officer Stelrad Group plcCondensed consolidated interim statement of changes in equity for the six months ended 30 June 2026 Attributable to the owners of the parent Issuedsharecapital Mergerreserve Retainedearnings Foreigncurrency Total £'000 £'000 £'000 £'000 £'000 At 31 December 2024 (audited) 127 (114,469) 239,788 (67,853) 57,593 Profit for the year - - 844 - 844Other comprehensive income/(expense) for theyear - - (85) 4,322 4,237 Total comprehensive income/(expense) - - 759 4,322 5,081 Share-based payment charge - - 704 - 704Dividends paid (note 10) - - (9,998) - (9,998) At 31 December 2025 (audited) 127 (114,469) 231,253 (63,531) 53,380 Profit for the period - - 8,658 - 8,658Other comprehensive income/(expense) for theperiod - - (141) (1,108) (1,249) Total comprehensive income/(expense) - - 8,517 (1,108) 7,409 Share-based payment charge - - 462 - 462Share-based payments settled - - (136) - (136)Dividends paid (note 10) - - (6,431) - (6,431) At 30 June 2026 (not audited) 127 (114,469) 233,665 (64,639) 54,684 Attributable to the owners of the parent Issuedsharecapital Mergerreserve Retainedearnings Foreigncurrency Total £'000 £'000 £'000 £'000 £'000 At 31 December 2024 (audited) 127 (114,469) 239,788 (67,853) 57,593 Loss for the period - - (3,445) - (3,445)Other comprehensive income/(expense) for theperiod - - (47) 2,758 2,711 Total comprehensive income/(expense) - - (3,492) 2,758 (734) Share-based payment charge - - 588 - 588Dividends paid (note 10) - - (6,126) - (6,126) At 30 June 2025 (not audited) 127 (114,469) 230,758 (65,095) 51,321 Stelrad Group plcCondensed consolidated interim statement of cash flows for the six months ended 30 June 2026 Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) £'000 £'000 £'000Operating activitiesProfit before tax 13,120 98 10,074 Adjustments to reconcile profit before tax to net cash flows:Depreciation of property, plant and equipment 5,658 5,776 11,393Amortisation of intangible assets 92 190 330Gain on disposal of property, plant and equipment (55) (71) (80)Share-based payment charge - net of settled 326 588 704Exceptional items - non-cash elements - 12,001 12,663Finance income (80) (86) (173)Finance costs 2,630 3,832 7,576 Working capital adjustments: Decrease / (increase) in trade and other receivables 3,516 (2,360) 517(Increase) / decrease in inventories (8,911) (2,992) 4,690Decrease in trade and other payables (5,382) (2,819) (4,430)Increase / (decrease) in provisions 1,146 (261) 94Movement in other financial assets / liabilities (740) 809 531Decrease in other pension provisions - - (1)Difference between pension charge and cash contributions (648) (1,375) (1,921)10,672 13,330 41,967 Income tax paid (5,457) (4,769) (8,000)Interest received 80 86 173 Net cash flows from operating activities 5,295 8,647 34,140 Investing activitiesProceeds from sale of property, plant, equipment and intangible assets 110 68 185Purchase of property, plant and equipment (2,261) (2,626) (5,215)Purchase of intangible assets - (18) (35) Net cash flows used in investing activities (2,151) (2,576) (5,065) Financing activitiesTransaction costs relating to refinancing - - (733)
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Proceeds from external borrowings 11,965 2,736 -Repayment of external borrowings (6,400) - (10,219)Payment of lease liabilities (1,351) (1,134) (2,662)Interest paid (2,017) (3,121) (5,905)Dividends paid (6,431) (6,126) (9,998) Net cash flows used in financing activities (4,234) (7,645) (29,517) Net decrease in cash and cash equivalents (1,090) (1,574) (442)Net foreign exchange difference (312) 513 787Cash and cash equivalents at start of period 18,978 18,633 18,633 Cash and cash equivalents at end of period 17,576 17,572 18,978 Stelrad Group plcNotes to the condensed consolidated interim financial statements for the six months ended 30 June 2026 1 Corporate information Stelrad Group plc is a public limited company that is incorporated, domiciled and has its registered office in England and Wales. 2 Basis of preparation The condensed consolidated interim financial statements for the half-year reporting period ended 30 June 2026 have been prepared in accordance with the UK-adopted International Accounting Standard 34, 'Interim Financial Reporting' and the disclosure guidance and transparency rules sourcebook of the United Kingdom's Financial Conduct Authority. The interim financial statements do not include all of the notes of the type normally included in annual financial statements. Accordingly, this report is to be read in conjunction with the Annual Report and Accounts for the year ended 31 December 2025, which has been prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006, and any public announcements made by Stelrad Group plc during the interim reporting period. The condensed consolidated interim financial statements have been prepared using the same material accounting policies and methods of computation used to prepare the Group's 2025 Annual Report and Accounts as described on pages 114 to 122 of that report, which can be found on the Group's website at www.stelradplc.com, and the adoption of new standards and interpretations, noted below. The condensed consolidated interim financial statements have not been prepared using any new accounting policies in the six months ended 30 June 2026. The 2025 annual consolidated financial statements of the Group were prepared in accordance with UK adopted international accounting standards in conformity with the requirements of the Companies Act 2006 and the disclosure guidance and transparency rules sourcebook of the United Kingdom's Financial Conduct Authority. The financial statements for the six months ended 30 June 2026 and the comparative financial statements for the six months ended 30 June 2025 have not been audited. However, the financial statements for the six months ended 30 June 2026 and the six months ended 30 June 2025 have been reviewed by the auditor, PricewaterhouseCoopers LLP. The comparative financial statements for the year ended 31 December 2025 have been extracted from the 2025 Annual Report and Accounts. The financial statements contained in this interim report do not constitute statutory accounts as defined in section 434 of the Companies Act 2006 and do not reflect all of the information contained in the Group's 2025 Annual Report and Accounts. The statutory accounts for the year ended 31 December 2025, which were approved by the Board of Directors on 13 March 2026 and have been filed with the Registrar of Companies, received an unqualified audit report which did not draw attention to any matters by way of emphasis and did not contain a statement under section 498 (2) or (3) of the Companies Act 2006. Going concern In preparing these financial statements on the going concern basis, the directors have considered the Group's current and future prospects and its availability of cash resources and financing and the Group's financial position. The Group meets its day-to-day working capital requirements through a bank loan facility which is in place up to December 2028. At the period-end date the Group had drawn down £75.1 million of a £100 million loan facility. The remainder of the facility and significant cash balances of £17.6 million are available to enable day-to-day working capital requirements to be met. As part of their period-end review, management has performed a detailed going concern review, based on severe but plausible conditions, looking at the group's liquidity and banking covenant compliance, examining expected future performance. The Board have also reviewed the risks and uncertainties facing the business. Based on the output of these going concern reviews, management have concluded that the Group will be able to continue to operate within its existing facilities for at least twelve months from the date of approval of the financial statements and as such the financial statements have been prepared on a going concern basis. New standards and interpretations applied in the period The following amendments and interpretations apply for the first time in 2026, but do not have a material impact on the consolidated financial statements of the Group. These include: · Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7 · Annual Improvements to IFRS Accounting Standards - Volume 11 · Contracts Referencing Nature-dependent Electricity - Amendments to IFRS 9 and IFRS 7
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New standards and interpretations not applied The International Accounting Standards Board has issued the following standards and interpretations with an effective date after the date of these financial statements: International Accounting Standards (IAS/IFRSs) Effective date (period beginning on or after) IFRS 18 - Presentation and Disclosure in Financial Statements 1 January 2027 IFRS 19 - Subsidiaries without Public Accountability: Disclosures 1 January 2027 The Group is continuing to assess the full impact of IFRS 18 and, based on the assessment performed to date, expects the impact to result primarily in presentation and disclosure changes. These are expected to include new mandatory subtotals within the consolidated statement of profit or loss and revised categorisations of certain income and expenses, for example presenting interest income on cash deposits within the investing category. The Group have identified that IFRS 18 will also introduce enhanced disaggregation and disclosure requirements in some line items of the financial statements. The introduction of IFRS 18 will require additional disclosures for any measures that meet the definition of a management- defined performance measure. Comparative information will be restated on adoption in 2027. It is anticipated that adoption of the remaining standards and interpretations will not have a material impact on the Group's financial statements. The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. 3 Significant accounting judgements, estimates and assumptions The preparation of the Group's consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Judgements In the process of applying the Group's accounting policies, management has made judgements which would have a significant effect on the amounts recognised in the consolidated financial statements. The judgements used in the condensed consolidated interim financial statements are detailed in the Group's 2025 Annual Report and Accounts on pages 123 of that report, which can be found on the Group's website at www.stelradplc.com. No new judgements have been applied to the condensed consolidated interim financial statements in the six months ended 30 June 2026. However, the judgements related to impairment of non-financial assets and impairment of inventories that were disclosed in the 2025 Annual Report and Accounts are no longer considered significant judgements in the condensed consolidated interim financial statements for the six months ended 30 June 2026, following the impairment of goodwill, customer contracts and property, plant & equipment and an exceptional inventory provision recognised in the 2025 financial statements. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described in the Group's 2025 Annual Report and Accounts on page 123 of that report. The Group based its assumptions and estimates on parameters available when the consolidated financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions when they occur. The estimates and assumptions used in the condensed consolidated interim financial statements are detailed in the Group's 2025 Annual Report and Accounts on page 123 of that report, which can be found on the Group's website at www.stelradplc.com. No new estimates and assumptions have been applied to the condensed consolidated interim financial statements in the six months ended 30 June 2026. 4 Principal risks The Board has undertaken a review of the principal risks affecting the Group for the six months ended 30 June 2026. The Board considers that the principal risks, as discussed in the 'Risk management' section on pages 46 to 53 of the Group Annual Report and Accounts for the year ended 31 December 2025 (available on the Group's website www.stelradplc.com), remain relevant. 5 Segmental information IFRS 8 Operating Segments requires operating segments to be determined by the Group's internal reporting to the Chief Operating Decision Maker ("CODM"). The CODM has been determined to be the Chief Executive Officer and Chief Financial Officer. The operating segments are determined to be the key geographical regions in which the Group operates. The CODM receive management information as part of the internal reporting framework based upon the key geographical regions. The CODM assesses the performance of geographical segments based on a measure of revenue and adjusted operating profit.
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Adjusted operating profit is earnings before interest, tax, amortisation of customer relationships and exceptional items. Revenue by geographical market Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) £'000 £'000 £'000 UK & Ireland 62,447 65,073 131,254Europe 58,195 62,861 133,526Turkey & International 3,363 8,541 14,818 Total revenue 124,005 136,475 279,598 The revenue arising in the UK, being the Company's country of domicile, was £59,273,000 (six months ended 30 June 2025: £63,595,000; year ended 31 December 2025: £126,046,000). Adjusted operating profit by geographical market Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) £'000 £'000 £'000 UK & Ireland 14,075 15,029 29,959Europe 6,289 3,567 7,331Turkey & International 255 741 1,183Central costs (3,921) (3,424) (6,002) Adjusted operating profit 16,698 15,913 32,471 Exceptional items (note 7) (1,028) (12,001) (14,925)Amortisation of customer relationships - (68) (69) Operating profit 15,670 3,844 17,477 Non-current operating assets Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended31 December2025(audited)£'000 £'000 £'000 UK 13,922 15,776 14,662The Netherlands 15,717 17,349 16,779Turkey 25,655 26,219 26,622Italy 12,939 14,028 13,916Other 750 956 859 Total 68,983 74,328 72,838 The revenue information above is based on the locations of the customers. All revenue arises from the sale of goods. One customer has revenues in excess of 10% of revenue (six months ended 30 June 2025: one; year ended 31 December 2025: one). 6 Other operating income/(expenses) Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended31 December2025 (audited) £'000 £'000 £'000 Net gain on disposal of property, plant and equipment 55 71 80Foreign currency gains 1,006 2,725 3,559Net gains/(losses) on forward derivative contracts 390 (1,115) (1,052)Sundry other income 213 167 414 1,664 1,848 3,001 7 Exceptional items Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended31 December2025 (audited) £'000 £'000 £'000 Impairment of goodwill - 2,648 2,694Impairment of customer relationships - 1,369 1,392Impairment of property, plant & equipment - 5,716 5,814Inventory provision - 2,268 2,307Restructuring costs 1,028 - 2,718 1,028 12,001 14,925 The exceptional items in the six months ended 30 June 2026 relate to redundancy costs in the Turkish business. The exceptional items in the year ended 31 December 2025 and the six months ended 30 June 2025 relate to impairment of assets of the Radiators SpA cash generating unit and an inventory provision, which arose due to circumstances surrounding the impairment. Additionally, restructuring costs were recognised in the year ended 31 December 2025 as a result of proactive margin management initiatives and cost reduction activities across our sites in Turkey, Italy and Denmark.
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All exceptional items have been presented as such because they are one-off in nature and separate disclosure allows the underlying trading performance of the Group to be better understood. 8 Income tax expense The major components of income tax expense are as follows: Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) £'000 £'000 £'000Consolidated income statement Current income tax:Current income tax charge 4,234 4,547 8,794Adjustments in respect of current income tax charge of previous period - - (41) Deferred tax:Relating to origination and reversal of temporary differences 228 (1,004) 477 Income tax expense reported in the income statement 4,462 3,543 9,230 Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) £'000 £'000 £'000Consolidated statement of comprehensive income Tax related to items recognised in other comprehensive income/(expense)during the period:Deferred tax on actuarial loss (47) (16) (28)Current tax on monetary items forming part of net investment and on hedgesof net investment 128 (181) (229) Income tax expensed to other comprehensive income/(expense) 81 (197) (257) The taxation charge has been calculated by applying the Directors' best estimate of the annual effective tax rate to the profit for the period. 9 Earnings per share Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended 31December 2025(audited) £'000 £'000 £'000 Net profit/(loss) for the period attributable to owners of theparent 8,658 (3,445) 844 Exceptional items (note 7) 1,028 12,001 14,925Amortisation of customer relationships - 68 69Refinancing costs - - 342Tax on exceptional items (226) (448) 582Tax on amortisation of customer relationships - (19) (19)Tax on refinancing costs - - (86) Adjusted net profit for the period attributable to owners of theparent 9,460 8,157 16,657 Six months ended30 June 2026(not audited) Six months ended30 June 2025(not audited) Year ended31 December2025 (audited) Basic weighted average number of shares in issue 127,352,555 127,352,555 127,352,555Diluted weighted average number of shares in issue 127,427,841 129,438,265 127,474,048 Earnings/(loss) per shareBasic earnings/(loss) per share (pence per share) 6.80 (2.71) 0.66Diluted earnings/(loss) per share (pence per share) 6.79 (2.66) 0.66 Adjusted earnings per shareBasic earnings per share (pence per share) 7.43 6.41 13.08Diluted earnings per share (pence per share) 7.42 6.30 13.07 10 Dividends paid and proposed Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended31 December 2025(audited) £'000 £'000 £'000Declared and paid during the periodEquity dividend on ordinary shares:Final dividend for 2025: 5.05p per share (2024: 4.81p per share) 6,431 6,126 6,126Interim dividend for 2025: 3.04p per share - - 3,872 6,431 6,126 9,998 Six monthsended 30 June2026 (notaudited) Six monthsended 30 June2025 (notaudited) Year ended31 December 2025(audited) £'000 £'000 £'000Dividend proposed (not recognised as a liability)Equity dividend on ordinary shares:Final dividend for 2025: 5.05p per share (2024: 4.81p per share) - - 6,431Interim dividend for 2026: 3.19p per share (2025: 3.04p pershare) 4,063 3,872 -
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11 Financial instruments a) Financial instruments - other - not interest bearing 30 June 2026(unaudited) 31 December2025 (audited) £'000 £'000Financial assets Financial instruments at fair value through profit or lossDerivatives not designated as hedges - foreign exchange forward contracts 522 - Total instruments at fair value through profit or loss 522 - Current 522 -Non-current - - 30 June 2026(unaudited) 31 December2025 (audited) £'000 £'000Financial liabilities Financial instruments at fair value through profit or lossDerivatives not designated as hedges - foreign exchange forward contracts - 221 Total instruments at fair value through profit or loss - 221 Current - 221Non-current - - Financial instruments through profit or loss reflect the change in fair value of those foreign exchange forward contracts that are not designated in hedge relationships, but are, nevertheless, intended to reduce the level of foreign currency risk for expected sales and purchases. b) Financial instruments - interest-bearing loans and borrowings Effective interest rate Maturity 30 June 2026(not audited) 31 December2025 (audited)% £'000 £'000 Current interest-bearing loans and borrowingsLease liabilities 2,449 2,579 2,449 2,579 Non-current interest-bearing loans and borrowingsLease liabilities 4,122 4,979Revolving credit facility - GBP SONIA + 1.5% 4 Dec 2028 25,900 32,300Revolving credit facility - Euro Euribor + 1.5% 4 Dec 2028 24,783 13,097Term loan Euribor + 1.5% 4 Dec 2028 24,417 24,750Unamortised loan costs (594) (715) 78,628 74,411 Total interest-bearing loans and borrowings 81,077 76,990 The Group has a £100 million loan facility jointly financed by National Westminster Bank plc and Barclays Bank plc. The facility consists of a £76.027 million revolving credit facility and a €28.346 million term loan facility. During the year ended 31 December 2025, the £76.027 million revolving credit facility and the €28.346 million term loan facility were renewed. The renewed facility is for an initial three-year term until December 2028, with an extension option for two further years, and is provided by the two existing lenders. The RCF and term loan facilities are secured on the assets of certain subsidiaries within the Group. c) Changes in liabilities arising from financing activities 1 January2026 (audited) Cash flows Non-cashchanges 30 June 2026(unaudited) £'000 £'000 £'000 Liabilities from financing activitiesRevolving credit facility - GBP 32,300 (6,400) - 25,900Revolving credit facility - Euro 13,097 11,965 (279) 24,783Term loan 24,750 - (333) 24,417Lease liabilities 7,558 (1,351) 364 6,57177,705 4,214 (248) 81,671 Other assetsCash and cash equivalents (18,978) 1,090 312 (17,576)(18,978) 1,090 312 (17,576) Net liabilities arising from financing activities 58,727 5,304 64 64,095 The non-cash changes relate to foreign exchange differences and non-cash lease movement. 12 Contingent liabilities Termo Teknik Ticaret ve Sanayi A.S. has issued letters of guarantee and letters of credit to its steel suppliers amounting to $513,000 (31 December 2025: $846,000) and $39,659,000 (31 December 2025: $36,444,000) respectively. Termo Teknik Ticaret ve Sanayi A.S. has also issued letters of guarantee denominated in Turkish Lira totalling TL31,076,000 (31 December 2025: TL28,993,000).
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The Group enters into various forward currency contracts to manage the risk of foreign currency exposures on certain purchases and sales. The total amount of unsettled forward contracts as at 30 June 2026 is £17,363,000 (31 December 2025: £13,863,000) on purchases and £17,250,000 (31 December 2025: £23,750,000) on sales. The fair value of the unsettled forward contracts held at the balance sheet date, determined by reference to their market values, is an asset of £522,000 (31 December 2025: liability of £221,000). As part of the £100 million loan facility, renewed in December 2025, the Group is party to a cross-collateral agreement secured on specific assets of certain Group companies. No liability is expected to arise from the agreement. Under an unlimited multilateral guarantee, the Company, in common with certain fellow subsidiary undertakings in the UK, has jointly and severally guaranteed the obligations falling due under the Company's net overdraft facilities. No liability is expected to arise from this arrangement. 13 Pensions and other post-employment plans 30 June 2026 (notaudited) 31 December 2025(audited) £'000 £'000Net employee defined benefit liabilityTurkish scheme 3,956 3,977Italian scheme 563 605Other retirement obligations 43 43 4,562 4,625 Turkish scheme In Turkey there is an obligation to provide lump sum termination payments to certain employees; this represents 30 days' pay (subject to a cap imposed by the Turkish Government) for each year of service. The IAS 19 valuation gives a liability of £3,956,000 (31 December 2025: £3,977,000). There are no assets held in this plan (31 December 2025: nil). Italian scheme The Italian pension scheme, the Trattamento di Fine Rapporto, is a deferred compensation scheme established by Italian law. Employers are required to provide a benefit to employees when, for any reason, their employment is terminated. The IAS 19 valuation gives a net liability of £563,000 (31 December 2025: £605,000). Other overseas retirement obligations The Group operates a number of defined contribution pension schemes in its overseas entities and also has certain other retirement obligations. UK scheme The UK has one defined contribution pension scheme. There were £35,000 outstanding contributions (31 December 2025: £69,000) due to the scheme at the balance sheet date. IAS 19 accounting - Turkish and Italian schemes Principal actuarial assumptions Italian scheme Turkish scheme Italian scheme Turkish scheme 30 June 2026 (notaudited) 30 June 2026 (notaudited) 31 December 2025(audited) 31 December 2025(audited) Discount rate (per annum) 3.4% 29.6% 3.4% 29.6%Future salary increases (per annum) n/a 24.6% n/a 24.6% Quantitative sensitivity analysis 30 June 2026 (not audited) 30 June 2026 (not audited) Discount rate(per annum) Future salary increases(per annum) +1% -1% +1% -1% £'000 £'000 £'000 £'000 (Decrease)/increase in defined benefit obligation -Turkish scheme (99) 103 81 (83) The sensitivity analysis above has been determined based on a method that extrapolates the impact on the net defined benefit obligation as a result of reasonable changes in key assumptions at the end of the reporting period. 14 Related party disclosures There are no related party transactions or changes to related party transactions since the last year end that could have a material effect on the Group's financial position or performance for the period. RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES AND GLOSSARY OF TERMS The Group uses some alternative performance measures to monitor and assess the underlying performance of the business. These measures include adjustedoperating profit and adjusted profit for the year. These measures are deemed useful as they aid comparability year-on-year. The use of alternativeperformance measures compared to statutory IFRS measures does give rise to limitations, including a lack of comparability across companies and thepotential for them to present a more favourable view. Further, these measures are not a substitute for IFRS measures of profit. Alternative performancemeasures are defined in the glossary of terms below. Alternative performance measures are reconciled to the appropriate financial statements line itembeing disclosed. Reconciliation of adjusted profit for the period and adjusted earnings per share
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Six monthsended 30 June 2026£'000 Six monthsended 30 June 2025£'000 Profit/(loss) for the period 8,658 (3,445)Adjusted for:Exceptional items 1,028 12,001Amortisation of customer relationships - 68 Tax on exceptional items (226) (448)Tax on amortisation of customer relationships - (19)Adjusted profit for the period 9,460 8,157 Basic weighted average number of shares in issue 127,352,555 127,352,555Diluted weighted average number of shares in issue 127,427,841 129,438,265Earnings/(loss) per shareBasic earnings/(loss) per share (pence per share) 6.80 (2.71)Diluted earnings/(loss) per share (pence per share) 6.79 (2.66)Adjusted earnings per shareBasic earnings per share (pence per share) 7.43 6.41Diluted earnings per share (pence per share) 7.42 6.30 Reconciliation of adjusted operating profit and EBITDA Six months ended 30 June2026£'000 Six months ended 30 June2025£'000 Operating profit 15,670 3,844Adjusted for:Exceptional items 1,028 12,001Amortisation of customer relationships - 68 Adjusted operating profit 16,698 15,913Adjusted for:Depreciation 5,658 5,776Amortisation (excluding customer relationships) 92 122EBITDA 22,448 21,811 Reconciliation of cash flow from operations, adjusted cash flow from operations and free cash flow Six monthsended 30 June2026 £'000 Six monthsended 30 June2025 £'000 EBITDA (see reconciliation above) 22,448 21,811Adjusted for:Exceptional items (1,028) -Gain on disposal of property, plant and equipment (55) (71)Share-based payments - net of settled 326 588Working capital adjustments (11,019) (8,998)Net capital expenditure (3,502) (3,710) Cash flow from operations 7,170 9,620Income tax paid (5,457) (4,769)Interest paid - net (1,937) (3,035)Free cash flow (224) 1,816 Cash flow from operations (see reconciliation above) 7,170 9,620Adjusted forExceptional items 1,028 -Exceptional items' impact on working capital (863) - Adjusted cash flow from operations 7,335 9,620 Reconciliation of net debt and leverage before leases liabilities Six months ended 30 June2026£'000 Six months ended 30 June2025£'000 Total interest-bearing loans and borrowings 81,077 90,223Cash and cash equivalents (17,576) (17,572)Adjusted for:Unamortised loan costs 594 493Lease liabilities (6,571) (8,329)Net debt before leases liabilities 57,524 64,815 EBITDA - six months ended 30 June (see reconciliation above) 22,448 21,811EBITDA - half two prior year 22,069 21,994EBITDA - last twelve months 44,517 43,805 Debt leverage ratio before leases liabilities 1.29 1.48 Adjusted cash flow from operations: cash flow from operations before exceptional items and the impact of exceptional items on working capital. Adjusted EPS: adjusted earnings per share is calculated on adjusted profit for the period divided by the weighted average number of shares in issue. Adjusted operating profit: operating profit before exceptional items and amortisation of customer relationships. Adjusted profit for the period: earnings before exceptional items, amortisation of customer relationships and tax thereon. Business capital employed: the sum of property, plant and equipment, technology and software costs, trade and other receivables, inventories, other current financial assets, provisions, net employee defined benefit liabilities, trade and other payables and other current financial liabilities. Cash flow from operations: EBITDA, less exceptional items, plus or minus movements in operating working capital, less share-based payment expense, less net investments in property, plant and equipment, less technology and software costs, less finance lease payments. Cash flow from operations conversion: calculated by dividing cash flow from operations by adjusted operating profit. Contribution: revenue from sale of the Group's products less any cost of direct materials, variable distribution costs, variable selling costs, direct labour costs and other variable costs. Debt leverage ratio: calculated by dividing net debt by EBITDA. Debt leverage ratio before lease liabilities: calculated by dividing net debt before lease liabilities by EBITDA.
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EBITDA: profit before interest, taxation, depreciation, amortisation and exceptional items. Free cash flow: cash flow from operations less tax paid less net interest paid. Net debt: the sum of revolving credit facilities, term loan, lease liabilities net of cash. Return on capital employed: adjusted operating profit as a percentage of business capital employed. RMI: repair, maintenance and improvement activities. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this informationmay apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the informationcontained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. Forfurther information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy. END