Stelrad reports interim revenue rise across all its territories

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Stelrad Group PLC on Friday reported a sharp drop in interim profit due the accounting treatment of its Turkish subsidiary, but it improved revenue across all its territories.

In the six months ended June 30, the Newcastle, England-based steel panel radiator manufacturer reported pretax profit of £4.7 million, a sharp drop from £12.4 million.

The firm took a £10.9 million hit to its post-tax profit as a result of IAS 29 adoption in relation to its Turkish subsidiary due to inflation in Turkey exceeding 100% over a three-year period.

IAS 29 is an international accounting standards rule that applies to any entity whose functional currency is the currency of a hyperinflationary economy.

Revenue rose by 17% to £150.1 million from £127.9 million a year before. The firm said the largest revenue growth was in its Turkey & International territory, up 43% against the previous year.

Stelrad said the strong revenue performance was underpinned by ‘pro-active margin management and an improved mix of premium steel panel radiators’.

Looking forward, Chief Executive Trevor Harvey said: ‘Whilst we continue to monitor the challenging economic conditions in our end markets closely, we remain confident in the outcome for the full year and are well-positioned to drive long-term shareholder value.’

It declared an interim dividend of 2.92 pence per share.

Shares in Stelrad were down 3.6% at 189.00 pence on Friday morning in London.

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