Stadium Group plc, the AIM listed provider of electronic manufacturing services (EMS), announces interim results for the six months ended 30 June 2010.  Revenues increased by more than one third compared with the same period last year, operating margin improved, and profit before taxation more than doubled to £1.45m.

The principal activity of Stadium Group plc is the design and manufacture of electronic and power supply products for original equipment manufacturers from its manufacturing facilities in the UK and China. Stadium Group delivers high quality solutions to a diverse range of customers worldwide, primarily operating in the industrial, transport infrastructure, security, consumer, medical and personal care, automotive and green technology sectors.

Financial Highlights

• Revenues (continuing operations) up 37% to £23.13m (2009 H1: £16.83m)
• Profit before tax (continuing operations) up 120% to  £1.45m (2009 H1: £0.66m)
• Strong net cash flow from operations at £1.68m (2009 H1: £1.45m)
• Earnings per share 3.9 pence (2009 H1: 2.4 pence)
• Interim dividend 0.95 pence per share (2009 H1: 0.80 pence per share)

Nick Brayshaw OBE, Chairman of Stadium Group plc, said, “The Group benefited from broad recovery in customer demand across most industrial and geographical segments, and increased market share through further new business wins in key target markets. 

The strength and speed of recovery since early 2009 demonstrates that Stadium continues to be a robust and reliable business partner.  The positive outlook for revenues from the core business in the second half is expected to continue, such that even without the contribution of Branded Plastics for the remainder of the year, we are confident of achieving market expectations for the full year ending 31 December 2010.

The divestment of the non-core branded plastics business enables the business to focus entirely on growth in the core areas of EMS and Power, and releases financial and management resources to seek new opportunities to leverage these areas of core capability. We anticipate further exciting opportunities for the future, both organically and through targeted acquisitions.

The board’s satisfaction with the strong performance of the business and positive outlook was sadly put into perspective by the tragic death of Ken Leung on 23 August 2010.”

READ MORE> RNS

Unaudited interim results for the six months ended 30 June 2010

Stadium Group plc, the AIM listed provider of electronic manufacturing services (EMS), announces interim results for the six months ended 30 June 2010.  Revenues increased by more than one third compared with the same period last year, operating margin improved, and profit before taxation more than doubled to £1.45m.

The principal activity of Stadium Group plc is the design and manufacture of electronic and power supply products for original equipment manufacturers from its manufacturing facilities in the UK and China. Stadium Group delivers high quality solutions to a diverse range of customers worldwide, primarily operating in the industrial, transport infrastructure, security, consumer, medical and personal care, automotive and green technology sectors.

Financial Highlights

• Revenues (continuing operations) up 37% to £23.13m (2009 H1: £16.83m)
• Profit before tax (continuing operations) up 120% to  £1.45m (2009 H1: £0.66m)
• Strong net cash flow from operations at £1.68m (2009 H1: £1.45m)
• Earnings per share 3.9 pence (2009 H1: 2.4 pence)
• Interim dividend 0.95 pence per share (2009 H1: 0.80 pence per share)

Nick Brayshaw OBE, Chairman of Stadium Group plc, said, “The Group benefited from broad recovery in customer demand across most industrial and geographical segments, and increased market share through further new business wins in key target markets. 

The strength and speed of recovery since early 2009 demonstrates that Stadium continues to be a robust and reliable business partner.  The positive outlook for revenues from the core business in the second half is expected to continue, such that even without the contribution of Branded Plastics for the remainder of the year, we are confident of achieving market expectations for the full year ending 31 December 2010.

The divestment of the non-core branded plastics business enables the business to focus entirely on growth in the core areas of EMS and Power, and releases financial and management resources to seek new opportunities to leverage these areas of core capability. We anticipate further exciting opportunities for the future, both organically and through targeted acquisitions.

The board’s satisfaction with the strong performance of the business and positive outlook was sadly put into perspective by the tragic death of Ken Leung on 23 August 2010.”

READ MORE>RNS

Ken has been with Stadium since March 2000 and joined the board of Stadium Group plc in December 2002.

Chief Executive, Nigel Rogers pays tribute to Ken, a respected colleague and friend:

“On behalf of Stadium employees in the UK, Hong Kong and China we offer our thoughts and deepest sympathy to Ken’s wife and son at this difficult time.

“The overwhelming reaction from our business partners and the wider network is a true mark of the affection and respect people felt for Ken. Thank you to everybody for your kindness.

“The sense of personal loss and injustice is profound for all of us, and even more so for his family.

The resilience of our strong team in Asia empowers the business to come to terms with this tragic event, building on the values which Ken considered to be so important, and which customers clearly value so highly.”

Chief Executive message to customers of Stadium Asia> read more

Ken has been with Stadium since March 2000 and joined the board of Stadium Group plc in December 2002.

Chief Executive, Nigel Rogers, said “Ken’s passing is an enormous shock to all of us, and our immediate concerns are for his wife, son and wider family at this most difficult time.”

Ends

Enquiries:

Walbrook PR Ltd

Paul McManus
Tel: 020 7933 8787, Mobile: 07980 541893

Brewin Dolphin

Andrew Emmott / Sean Wyndham-Quin
Tel: 0845 213 4730

The announcement will be released by the Regulatory News Service and posted to the website.

For further details please contact:

Stadium Group plc

Nigel Rogers, Chief Executive
Stacey Scullion, Marketing Manager
Tel: 01429 852 500

Walbrook PR Ltd

Paul McManus
Tel: 020 7933 8787

Brewin Dolphin Investment Banking

Andrew Emmott
Tel: 0845 270 8611

The standard has been in place at the Stadium wholly owned facility in Dongguan China since 2008.

Tony Inskip, Commercial Director, said: “The medical sector is a high growth area for the electronics industry worldwide, not only in medical devices but within a wider spectrum of products in the healthcare and wellbeing markets including consumer marketed products with electronic content.

Driven by the increasing average age of the population, technology innovations and a predicted growth of medical and healthcare-related products, this proves this a very attractive area for EMS providers with the right offering.

Background to the disposal

The combined turnover of Stadium Electronics and Stadium Power amounted to £35.3m in 2009, out of a group turnover of £46.6m. This places Stadium Group as one of the leading independent EMS companies in the sector in the UK. In recognition of the critical mass achieved in this core activity, and its significant growth potential, the directors have decided to realise the value of the Group’s non‐core business in the manufacture and distribution of branded plastic products. The resources released from the sale will facilitate further expansion in this core activity, and reduce net pension obligations.

In the financial year ended 31 December 2009, Branded Plastics contributed turnover of £11.3m and net operating profit of £0.8m to the group.

Details of the disposal

The business and net trading assets of Branded Plastics have been sold to Flambeau Europlast Limited for net cash consideration of approximately £2.5m. This is equivalent to the estimated book value of Branded Plastics at the date of disposal. Precise values are subject to the preparation and agreement of completion accounts.

Stadium Group will retain the freehold property that Branded Plastics operates from, and this will be leased to Flambeau at an annual rental of approximately £0.40m for a flexible term expected to be between six and twelve months. The freehold property comprises of 128,000 square feet at Higham’s Park, London and has a current net book value of £2.05m.

The Company intend to pursue opportunities for the sale of the freehold property with vacant possession at the conclusion of the lease, and anticipate that this can be achieved at a value significantly greater than net book value.

Utilisation of proceeds

Stadium intends to utilise the proceeds on sale of the business to provide cash resources for the further development of its EMS and Power business, and to reduce its net pension obligations. Agreement has been reached with the Trustees of the pension fund to make an additional contribution of approximately £0.9m from the net proceeds of the sale.

Trading update

Stadium also announces that revenue growth for the Group for the five months ended 31 May 2010 has been very strong and anticipates the announcement of results for the first half significantly ahead of last year.

The favourable outlook for revenues from the core electronics business in the second half is expected to continue, such that even without the contribution of Branded Plastics for the remainder of the year, the Company remains confident of achieving market for the full year ending 31 December 2010.

For further details please contact:

Stadium Group plc

Nigel Rogers, Chief Executive
Stacey Scullion, Marketing Manager
Tel: 01429 852 500

Walbrook PR Ltd

Paul McManus
Tel: 020 7933 8787
Mob: 07980 541 893
Email: paul.mcmanus@walbrookpr.com

Brewin Dolphin Investment Banking

Andrew Emmott
Tel: 0845 270 8611

No further details can be given at this stage and a further statement will be made when appropriate.

For further details please contact:

Stadium Group plc

Nigel Rogers Tel: 01429 852 520
Chief Executive

Brewin Dolphin Investment Banking

Andrew Emmott Tel: 0845 213 4730

Walbrook PR Ltd

Paul McManus Tel: 020 7933 8787

Stadium Group plc

Nigel Rogers Tel: 01429 852 520
Chief Executive

Brewin Dolphin Investment Banking

Andrew Emmott Tel: 0845 213 4730

Walbrook PR Ltd

Paul McManus Tel: 020 7933 8787

Stadium Group’s share capital consists of 29,197,398 ordinary shares with a nominal value of 5p each (‘Ordinary Shares’). The Company does not hold any shares in Treasury.

Therefore, the total number of voting rights in Stadium Group is 29,197,398.

The figure of 29,197,398 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, Stadium Group under the FSA’s Disclosure and Transparency Rules.

For further details please contact:

Stadium Group plc

Nigel Rogers Tel: 01429 852 520
Chief Executive

Brewin Dolphin Investment Banking

Andrew Emmott Tel: 0845 213 4730

Walbrook PR Ltd

Paul McManus Tel: 020 7933 8787