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Stadium Group PLC (SDM)

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Wednesday 08 November, 2017

Stadium Group PLC

Trading Update & Notice of Results

RNS Number : 8522V
Stadium Group PLC
08 November 2017
 

 

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

 

Stadium Group plc

("Stadium", the "Company" or the "Group")

 

Trading Update & Notice of Results

 

Stadium Group plc (AIM: SDM), a leading supplier of design-led technologies including connectivity solutions, power supplies, human machine interface products and electronic assemblies, provides the following trading update.

 

Significant progress continues to be made in transitioning Stadium from a purely electronic assemblies business to a design-led technology business. The Company expects to report a year-on-year increase in revenues of 15% to £61m (2016: £53.1m).

 

Whilst revenue growth and the development of the forward order book are in-line with expectations for the current year, the Board now expects single digit percentage growth in normalised profit before tax, which is below current market expectations. This is primarily due to customer delays into 2018 for certain higher margin Technology Products projects, which had originally been expected to ship before the year end.

 

The widely reported global shortage of certain electronic components, particularly memory, integrated circuitry and passive components, has compounded the situation. As reported at the time of the interim results, this has also contributed to cost pressures and, despite building inventory, it has not proved possible to fully mitigate this. Actions have been taken to off-set some of the revenue short-fall by undertaking additional Electronic Assembly sales, but the lower margin nature of this work will only partially alleviate this impact. The delayed sales and increased inventory referred to above are expected to result in increased net debt at 31 December 2017.

 

The Company's offering of complementary electronics technologies and specialist design-focused engineering expertise continues to be attractive to its customers and the growing demand seen in the first half of the year is evidenced by the continued growth in its order book, which currently exceeds £32m, a new record level for the Group (up from £25.8m at 31 December 2016). Although the Board recognises that the delays and some pricing pressure will continue to impact the Group in 2018, the forward visibility provided by the order book and the strong design pipeline of newly awarded projects, provides confidence that the Company will deliver double-digit revenue and profit before tax growth in the coming year.

 

Stadium will announce its financial results for the year ended 31 December 2017 on Tuesday, 13 March 2018.

 

*Normalised profits referred to in this announcement are stated before costs relating to acquisitions and disposals, business restructuring costs, profit/(loss) on disposal of businesses, items deemed to be of an exceptional nature, impairment of goodwill and acquired intangibles.

 

 

For further information please contact:

 

Stadium Group plc

www.stadiuminvestors.com

Charlie Peppiatt, Chief Executive Officer

Tel: 0118 931 1199

Winston North, Group Finance Director

Mob: 07774 239 116

 

 

Walbrook PR

Tel: 020 7933 8780 or [email protected]

Paul McManus

Mob: 07980 541 893

Helen Cresswell

Mob: 07841 917 679

 

 

N+1 Singer

 

Richard Lindley

Tel: 020 7496 3000

 

 

About Stadium Group plc (www.stadiumgroupplc.com)

Stadium Group plc is a leading supplier of design-led technologies including connectivity solutions, power supplies, human machine interface (HMI) and electronic assemblies with design and manufacturing operations in the UK, Sweden and Asia. The Company consists of two divisions:

 

1.    Technology Products (60% of 2016 revenues)

·     Connectivity solutions - design, integration and manufacture of machine-to-machine ("M2M") and Internet of Things ("IoT") wireless solutions

·     Power supplies (including Stontronics) - custom and standard power products from 1W to 10kW

·     Human machine interface (HMI) - intelligent interface and display solutions

 

2.    Electronic Assemblies (40% of 2016 revenues)

·     Electronic manufacturing services to global original equipment manufacturers

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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