Stadium shares drop
SHARES in Stadium Group fell over 30% yesterday after the electronics and plastics manufacturer said it had made redundancies following a drop in demand.
The Hartlepool-based business yesterday posted a 17% increase in sales to £47.6m and a 5% rise in pre-tax profits to £2.78m in 2008, but chief executive Nigel Rogers admitted customers had since been more cautious.
Stadium also adjusted its dividend policy, cutting the amount it will pay to shareholders from 3.75p per share in 2007 to 2.55p for 2008. In a note to its clients, broker Brewin Dolphin said it expects to reduce its 2009 forecasts for Stadium by about 30%, and that its price target and recommendation are under review – though it did acknowledge 2008 was a “good year” for Stadium Group. Shares in Stadium finished the day down over 30% at 28.5p.
PAGE TWO: More on Stadium's financial results