Stadium Group eyes start of recovery

Mar 3 2010 By Karen Dent, The Journal

ELECTRONICS and plastics maker Stadium Group  says it is poised to benefit from the economic recovery despite revealing a 10% dip in profits.

The Hartlepool-based business, which also has operations in Warwickshire and owns Stadium Asia in China, said pre-tax profits fell to £2.50m from £2.78m in the year to the end of December.

The group axed 200 of 2,000 jobs in China and 19 staff from its 110-strong workforce in Hartlepool last year and this profit figure is before the cost of redundancies were taken into account. Revenue was down by 2.2% to £46.58m.

Stadium said that although there were some signs of recovery last year, sectors such as automotive and consumer electronics were still under pressure.

But the AIM-listed company said it was winning new business and current trading was up on a year ago.

Chairman Nick Brayshaw said: “The actions taken by management in the early part of the year to mitigate the effects of the economic downturn placed the business in an ideal position to benefit from recovery, with a reduced operating cost base and the financial resources to fund renewed growth. 

“Current trading is substantially ahead of the same period last year, and the level of enquiries from both existing and target customers is encouraging.”

Stadium said increased interest in green technology would benefit the business’s expansion and it would keep its eyes open for new acquisitions.

Mr Brayshaw said: “There is clear evidence that technology can provide part of the solution to climate change, and the low carbon emissions agenda of the future will depend on new ways of generating, measuring and conserving energy and water.

“Developments in renewable energy, smart metering and low energy lighting are examples of this process, and each of these sectors offer opportunities for electronic manufacturing services providers.

“Our skills and experience in power supply design and manufacture represent a distinct advantage, especially in conjunction with competitive sourcing from our facility in Asia.”