FY25 results were well flagged in the January update. Despite a 4% revenue decline to £279.6m, adj. PBT increased by 8% to £25.4m, bang in line with our forecast. Management's continued ability to drive higher contribution margins - contribution per radiator up for an eighth consecutive year to £20.50 - alongside proactive cost actions, again demonstrates the quality and resilience of Stelrad's model. FY26 has started in line with expectations and, whilst subdued conditions are expected to persist through at least H1, restructuring actions embedded during FY25 position the Group well for further earnings progress. We forecast adj. PBT growth of 8% in FY26. With market leadership in six of ten core territories and a leaner operating model, Stelrad is well-placed to outperform peers near-term and benefit materially from any market recovery. We reiterate our Buy recommendation and 215p TP (15x FY26 PER).
