Stadium Group plc – Unaudited interim results for the six months ended 30 June 2009
Unaudited interim results for the six months ended 30 June 2009
Stadium Group plc, the AIM listed provider of electronic manufacturing services (EMS), announces interim results for the six months ended 30 June 2009. The group has delivered profits before taxation and reorganisation costs in excess of £1 million, significantly reduced its underlying cost base, generated strong operating cash flows, and closed the period in robust financial condition with bank gearing of just 6.5%. Overall, the board considers the results to be satisfactory.
The principal activity of Stadium Group plc is the design and manufacture of electronic and power supply products for original equipment manufacturers from its manufacturing facilities in the UK and China. Stadium Group delivers high quality solutions to a diverse range of customers worldwide, primarily operating in the consumer, industrial, medical and personal care, and automotive sectors.
- Revenues at £22.34m (2008: £23.06m)
- Profit before tax £0.88m after reorganisation costs of £0.16m (2008: £1.40m)
- Strong operating cash flow of £1.45m (2008: 1.39m)
- Net bank borrowings reduced to £0.69m (31 December 2008: £2.09m)
- Significant new business wins in pipeline
Nick Brayshaw OBE, Chairman of Stadium Group plc, said,
“These results reflect the success of the steps taken by the management team to address the significant downturn in demand from existing customers during the first quarter and to maintain liquidity. Early actions taken to reduce the cost base and improve operational efficiency mitigated the effect of a period of destocking by customers. Maintenance of the focus on inventory management, and the alterations to dividend policy and pension scheme funding helped deliver a robust cash position.
Despite prevailing market conditions, which we anticipate remaining challenging for the remainder of 2009 and into 2010, trading with our existing customers is expected to remain stable.
More encouragingly, the level of new customer contracts in key target market sectors that are due to enter production by the fourth quarter is at a high level. Through the acquisition of Zirkon in October 2008 we have enhanced both market profile and management, leading us to expect further success next year.
Accordingly, we are optimistic regarding future prospects of recovery to previous levels of profitability, and further growth thereafter.”