Following the appointment of new CEO Stephen Phipson in September 2011, formerly President of Smiths Detection, Stadium has appointed a Group Operations Director to the Board, a Business Unit Director for its Midlands-based manufacturing operation and three new appointments to the commercial team.

Charlie Peppiatt joins Stadium from Laird Plc, a global electronics company where he was Vice President of Global Operations responsible for a division with manufacturing in eight locations across Asia with 6,000 staff.

Ian Davies has been appointed to the new role of Business Unit Director for the Rugby facility. Ian joins Stadium with more than 27 years of sector experience having worked for some of Europe’s leading electronics manufacturers and technology companies. He will be responsible for overall manufacturing operations at the site and will oversee a planned expansion of the facility in early 2012.

The commercial team has also doubled overnight with the appointment of three new sales personnel responsible for driving new business in both existing and new markets. Lindsay Driscoll, Strategic Business Development Director will drive sales in Western Europe in target growth markets such as smart grid and metering. Steve Henderson, Business Development Manager will focus on developing the UK market and Sinney Leung, Sales Director for Asia will drive sales and brand awareness in the emerging Asian markets

Stephen Phipson said: “In order to ensure we have the capability and capacity to fulfil our growth aspirations, we are seriously committed to investing in our people and facilities.

“As we focus on continued organic growth, the sales team appointments will drive new business in both our existing target markets and in emerging sectors such as green energy, renewables and smart metering.

“Charlie Peppiatt, though based in UK for Stadium,  has been located in Beijing for the last four years and has a familiarity with operations in Asia that will be highly beneficial to Stadium’s global operations in China.

“Charlie brings considerable knowledge of the global electronics manufacturing industry and  will lead a new key initiative to create value and efficiencies in our procurement operations in the UK and China – working as a group to deliver higher levels of competitiveness. Stadium currently spends over £30 million on materials alone so there is huge potential to gain economies of scale through leveraging our global operations more effectively. He also has extensive experience of managing change programmes in growing companies so as we move through a period of change in Stadium – new people, processes and strategy – his guidance will be crucial to the success of the company.”

Stephen added: “In addition, having someone of Ian Davies’ calibre to oversee our operations at Rugby is a major boost to Stadium. He has extensive experience of lean manufacturing tools and techniques which have delivered significant efficiencies, reduced costs and improved customer experience.”

“Stadium is committed to investing in both people and technologies that will facilitate future growth of the company and I wish our new recruits every success in their new roles.”

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.

Financial Highlights
• Revenues of £23.20m (2010: £23.13m)
• Profit before taxation up by 9% to £1.58m (2010: £1.45m)
• Earnings per share (from continuing operations) of 3.9p (2010: 3.9p)
• Balance sheet net cash of £3.70m (31 Dec 2010: £1.67m)
• Interim dividend up 10.5% to 1.05p (2010: 0.95p)

Other highlights
• Focus on organic growth in key markets with targeted acquisitions
• Divestment of surplus property in Chingford generated net cash proceeds of £2.51m
• Closure of the final salary pension scheme to future accruals and net pension deficit reduced
• Appointment of Stephen Phipson as New Chief Executive to drive sustained growth
• Pipeline of future opportunities is expanding

Commenting on the outlook, Nick Brayshaw OBE, Chairman of Stadium Group plc, said,
“The appointment of Stephen Phipson as Chief Executive is ideally timed to capitalise on the wealth of exciting opportunities which exist to grow the business. The company’s strong balance sheet sees it ideally placed to grow both organically and through targeted acquisitions. The exposure to high growth, innovative sectors offers the chance to increase market share in our target sectors, and there are plans to invest in the middle management capability and to enhance the equipment base to underpin this
growth.”

For further information please contact:

Stadium Group plc
Nick Brayshaw, Chairman
Tel: 01429 852500

Walbrook PR
Paul McManus – Mob: 07980 541 893 or paul.mcmanus@walbrookpr.com
Paul Cornelius – Tel: 020 7933 8780 – Mob: 07827 879 460 or paul.cornelius@walbrookir.com

Brewin Dolphin Investment Banking
Mark Brady – Tel: 0845 213 4729
Nick Owen – Tel: 0845 059 6412

Stephen Phipson (49) joins Stadium from Smiths Group plc (“Smiths”), a FTSE 100 business with a turnover of circa £2.7billion. Since 2004 Stephen has held the role of President of Smiths Detection, the world’s largest provider of chemical, biological, and explosives detection systems supplying major airports, ports, military and government agencies in over 160 countries worldwide. The division recorded a turnover of £574m in 2010 and has some 2500 staff. Whilst in this role, Stephen delivered sustainable organic and acquisitive growth, including developing new business in China, Russia, US, Eastern Europe and Asia.  Within Smiths, Stephen previously held the position of Managing Director of the Interconnect Division from 1997 to 2004, where he led the business through a period of substantial growth in the defence, telecommunications and commercial electronics market.

Stephen began his career in 1978 with Plessey Plc, and held a variety of senior roles in the electronics industry before joining Smiths in 1997.

Commenting on the appointment, Chairman, Nick Brayshaw OBE said,“I am very pleased to welcome someone of Stephen’s pedigree to lead the team at Stadium. Stephen’s considerable experience in the global electronics industry will be enormously helpful in driving the next phase of growth in the Company. His experience in leading substantial businesses, driving strong organic growth and international expansion, will be a great asset to us and we are all very much looking forward to working with him going forward.

“Having now completed the refocusing of the business, we have a robust platform from which to develop the Company and I am confident that Stephen has the skills and experience to drive sustained and considerable growth in Stadium, both organically and through acquisitions.”

For further information please contact:

Additional Information

Stephen Phipson, aged 49, holds no shares in the Company and other than as set out below there is no further information to be disclosed under schedule 2(g) and Rule 17 of the AIM Rules in respect of Mr Phipson’s appointment as a Director of the Company.

Mr Phipson is a director / partner or has been a director / partner of the following companies / partnerships during the previous five years:

Go to RNS Announcement>

Financial highlights

* all figures from continuing activities only

Other highlights

• Disposal of non-core plastics business in June 2010 is the final stage of group reorganisation started in 2001
• New focus on core provision of electronic design and build solutions
• Chief Executive, Nigel Rogers, will not stand for re-election at AGM in April
• Nick Brayshaw to become Executive Chairman and acting CEO until appointment of new Chief Executive
• New Chief Executive to be appointed to drive growth in the business

Commenting on the outlook, Chairman Nick Brayshaw OBE said,

“We remain optimistic that continued growth will be achieved from existing products and customers, and will continue to win new business to increase our market share as the key to future success.

The company now has a clear focus on core electronics activities, and a strategy has been set out to continue to deliver strong organic growth.  This is driven by the delivery of premium manufacturing and engineering services to a base of long term business partners.

The goal is now to become acknowledged as the leading UK owned provider of electronic design and build solutions, by continuing to target new customers across the world in high growth industry sectors.  The company has the financial resources available to invest in the  people, processes and technology required to deliver further progress towards this goal during 2011 and beyond.”

Read full financial results 2010>

At the exhibition, Stadium exhibited for the first time and displayed diverse sector capability and the unique BEST-FIT manufacturing model utilising its wholly owned operations in the UK and Asia.

A key theme of the event promotions was the Centenary celebration as 2011 marks 100 years in business for Stadium Group.

In a trading update released on 19 January 2011 the company confirmed that strong trading performance has continued through the second half of the year, consistent with the directors’ expectations.

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.”

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.

New business success achieved in the second half has led to significant out-performance relative to expectations established earlier in the year, and this has continued into 2010. The group had net cash of £0.4m at the year end, and facility headroom exceeding £5m to finance further expansion.

Far East outsourcing remains a compelling strategy for a wide range of companies, and continues to offer a significantly lower cost base. Meanwhile, the proposition for UK manufacturing is improving as customers seek to shorten new product introduction timescales, reduce production lead times and minimise working capital investment. By combining our facilities, we provide our customers with cost effective design and manufacturing solutions which meet international standards of product quality, customer service and intellectual property protection regardless of location.

Current trading is substantially ahead of the same period last year, and the level of enquiries from both existing and target customers is encouraging. Looking further ahead, we are optimistic that new products emanating from emerging market sectors, including green technology, will offer significant potential for organic growth, and lead to further investment and acquisition activity when suitable opportunities arise.”

Financial highlights

• • Revenues of £46.58m (2008: £47.61m)
• • Profit before taxation and severance costs* of £2.50m (2008: £2.78m)
• • Underlying earnings per share* of 6.8p (2008: 7.6p)
• • H2 PBT* up 40% to £1.46m (2009 H1: £1.04m)
• • H2 earnings per share* up 43% to 4.0p (2009 H1: 2.8p)
• • Net cash flow from trading activities of £4.83m (2008: £4.21m)
• • Balance sheet net cash of £0.40m (2008: £2.05m net borrowings)
• • Proposed final dividend up 11.5% to 1.45 pence per share, total 2.25 pence (2008: 1.30p, 2.55p)

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