Liverpool city region heat pump specialist Stiebel Eltron UK sees revenues edge up to £12.6m but pre-tax profits fall as the UK continues to fall well short of its heat pump installation target. Tony McDonough reports

Wirral heat pump specialist Stiebel Eltron UK continues to grapple with a sluggish UK heat pump market with small sales growth and declining profits.

Bromborough-based Stiebel Eltron UK is a standalone division of a company of the same name based in Germany, set up by Dr Theodor Stiebel in a backyard in 1924. The Wirral operation was set up by Mark McManus in 2008. He departed the firm in spring 2025.

Its day-to-day operations focus on the sale and distribution of electric space heating, hot water, ventilation and renewable energy products. Its customers are mainly installers, wholesalers and online retailers. It also has an installation training centre.

In its accounts for the 12 months to December 31, 2026, published on Companies House, Stiebel Eltron UK is reporting a 5% rise in sales to £12.6m but an almost 9% fall in pre-tax profits to £383,237.

Although it is envisaged heat pumps may one day become the primary method for the heating of homes in the UK, take up remains slow due to the cost and uncertainty of support from Government.

Ministers have set a target of 450,000 heat pump installations a year in the UK by 2028 but currently that number is little more than 60,000 a year. The Government target was originally set at 600,000 a year by 2028 but this was adjusted downwards.

Stiebel Eltron UK managing director John Felgate, who took over from Mark Manus in 2025, wrote in the annual report: “2025 has been a year of consolidation. We have focused on enhancing our existing operations, tightening processes, improving efficiency and reducing costs.

“As a result, turnover has increased and profitability is close to that achieved in the previous year. Operational efficiency in order processing and overall customer service have improved further following the launch of our online B2B Shop.

“We have experienced a growing share of turnover from our renewable energy product lines compared with our traditional home comfort heating products.”

READ MORE: Wirral clothing manufacturer reports revenues of £16.2m

READ MORE: Landmark Wirral building hits full occupancy

In July the company welcomed the Government’s decision to increase the Boiler Upgrade Scheme (BUS) grant to £9,000 for households currently heating with oil or LPG. This applies to air source and ground source heat pump installations in England and Wales.

However, in the report John added: “Market uncertainty stemming from delays to building regulations, particularly the Future Homes Standard and the yet to be defined mechanisms for demonstrating compliance, has led to hesitancy among decision-makers and extended project timelines.”