STADIUM Group has promised to be more "aggressive" in hunting for contracts in future, and has added it is on the lookout for potential acquisitions.
The Hartlepool electronic and power supply products company announced slightly increased revenues for the six months to June 30, inching up to £23.2m from £23.1m in the same period last year. Pre-tax profit was £1.58m, 9% more than 2010’s figure of £1.45m.
The company recently brought in Stephen Phipson to replace Nigel Rogers as chief executive, and Phipson said he saw a “great opportunity” for the company to expand both at its Hartlepool factory and as a whole.
He said: “We’ve got a company in great shape and only operating at about 50% capacity. I have a lot of experience in the electronics industry, and I’m used to working at companies at 105% capacity.
“There’s a lot more we can do at our factory in Hartlepool in terms of getting new contracts and customers in. We’re keen to utilise existing assets, and to be more aggressive in hunting for business rather than just maintaining the contracts we’ve got.
“The third thing we’re looking at is targeting selected acquisitions that add to the capability of the company.”
Phipson arrived from Smiths Group this month to replace Rogers, who announced in April he was leaving after 18 years. Chairman Nick Brayshaw said the company would be “going in the same direction, but with more purpose”.
He said: “Each of the plants are run as largely independent operations. What we’re trying to do is make them work as a group, sharing best practice. There’s some really good opportunities there.”
Brayshaw described the results for the six-month period as a “solid, steady set of numbers”.
The company raised cash proceeds of £2.51m by selling property previously occupied by its branded plastics division, and plans to invest in additional capability at its site in Rugby during the last quarter of the year. It also has a manufacturing presence in China, and employs around 105 people at its factory in Hartlepool.
The company said it had a “healthy order pipeline” as well as “spare capacity for organic growth” and cash “available for investment”, and while no deals are currently underway, it is interested in getting in touch with any businesses that may be open to acquisition.
Revenues at Stadium Electronics dropped by 2% to £20.72m, a slip the company put down to reduced spending by Government on one of its customers in the transport infrastructure sector.
However, it picked up new customers in green technology, security and industrial controls. Stadium Power revenues rose by 22% to £2.48m, thanks to a growth in the medical, security and industrial control sectors.
