Stadium Group looks to make money work
Sep 2 2010 by Chris Hole, Evening Gazette
TEESSIDE electronics manufacturer Stadium Group is looking for opportunities to reinvest the proceeds from the sale of its plastics business, after more than doubling pre-tax profits in the first half of the year.
The Hartlepool-based company, which today unveiled a huge 120% rise in pre-tax profits, sold its Branded Plastics division to Kent-based Flambeau Europlast earlier this summer for £2.5m.
Chief executive Nigel Rogers today confirmed the firm are looking to get that money “working” once again - but insisted they will wait for the right deal.
“We will be looking for opportunities to get that money to work in the electronic business,” Mr Rogers said.
“But also we will be looking at targeted acquisitions. There is indeed a specific transaction we have in mind but nothing is imminent.”
Following the sale, Stadium Group now focuses entirely on the development of electronic manufacturing services and power.
Today it reported a huge jump in revenues and profits for the six months until the end of June.
The group saw a 37% rise in revenues to £23.1m in the first half of the year, up from £16.8m over the same period in 2009.
Pre-tax profits rose from £0.6m to £1.45m, while operating profit increased by 104% to £1.73m compared to £0.85m last year.
“It’s a very solid set of figures,” Mr Rogers said. “Looking at 2009 it was really a year of two halves.
“We saw a hard first half of the year but the momentum then picked up.
“The results are obviously partly the impact of the economic recovery. But it’s also a reflection of how we have operated, focusing on cost efficiency but keeping our foot on the gas.”
Stadium Group includes Stadium Electronics, Stadium Power and Stadium Asia.
Stadium Electronics today posted revenues of £21.1m in 2010 compared to £15.36m last year.
Revenue from its UK bases, in Hartlepool and Runcorn, saw a 29% increase from £6.3m to £8.2m. Revenue from its Asian operations, meanwhile, grew by 43% from £9m to £12.9m.
Stadium Power’s UK revenue went up 19% from £1.1m to £1.3m while in Asia it doubled from 0.35m to £0.7m.
