Stadium sees the light with 23% rise in its profits

Feb 28 2008 by Graeme King, The Journal

PROFITS at electronics and plastics manufacturer Stadium have risen by 23% in the 12 months of 2007, with a contract to make sex products for Durex maker SSL making a major contribution.

Stadium, based in Hartlepool, reported pre-tax profits (excluding sale of property) up to £2.6m on sales up 6% to £40.76m.

The company has benefited from striking a balance between 130 Hartlepool staff working on hi-tech manufacturing for industrial customers, and more than 1,300 Chinese staff working on larger scale consumer product manufacture.

After a “tough” year of trading for Stadium in 2006, the company has invested in its management structure at Hartlepool, with new managing director Richard Reid running the plant, and the business has also adopted ‘lean’ manufacturing techniques to make its operations as efficient as possible.

Nigel Rogers, chief executive of Stadium, said: “It’s a good solid set of figures. We have seen a lot of growth in the business out in China. The facility performed very well.

“But Hartlepool had a very good year in 2007, too. We had some management changes there and the leadership in that business has given it some new life.”

Mr Rogers said Stadium’s contract with Durex maker SSL – first featured in the company’s half year figures in September last year – was proving successful.

He said: “We have been ramping up the volume we have been doing for them this last quarter. It’s a very important partnership for us and SSL is now one of the largest of the company’s customers.

“We are working very closely with them on new product development. We are working on more products in the Durex Play range.”

Mr Rogers said he was expecting growth in the next year or two from the Stadium Power business, and this could have knock-on effects for growth in Hartlepool.

He said: “One of the key areas for organic growth in 2008 and beyond is the continuing development of Stadium Power.

“We have completed two small acquisitions and now have three businesses (Diss in Norfolk, Peterborough in Cambridgeshire and Newbury in Berkshire) working as one unit, and we have product launches coming up in 2008 and 2009.

“Those companies are primarily involved in design, engineering and sales, so some medium volumes of manufacturing would go to Hartlepool, and higher volumes to China.”

Stadium Group

Year to December 31, 2007

Turnover

2007: £40.76m

2006: £38.55m

%change: +6%

Pre-tax profits*

2007: £2.66m

2006: £2.16m

%change: +23%

Dividend

2007: 2.55p

2006: 2.45p

%change: +4%

* Excluding property sales