SRAD

Stelrad Group PLC

Construction and Materials First-pass screen £167m

390/1000 Overall fit

AI beneficiary 35% 15

Operating leverage 25% 72

Valuation 25% 30

Downside protection 15% 57

First-pass take

Stelrad is a radiator manufacturer with no AI exposure but strong operating leverage: adjusted margins improved 80bps to 11.6% despite 4% volume decline, with contribution per unit rising 8 consecutive years to £20.50. Market position solid (52% UK, 24% European share), but cyclical construction/RMI exposure and weak demand outlook (forecast subdued H1 2026) with one customer >10% limit downside protection. Valuation unknowable without share price.

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