Member Article

Stadium Group profits fall after Rugby closure

The North East’s Stadium Group has reported a fall in pre-tax profits for the first half of 2013, owing to the closure of its Rugby site.

Profit was £0.37m, down from £0.74m in 2012.

The Hartlepool-headquartered electronic assembly specialists say revenue was £21.44m, up from £20.93m last year.

During the six months to July, the firm made headway in the restructuring of its head office and Asian base and appointed Charlie Peppiatt as CEO.

Chairman Nick Brayshaw OBE said: “The closure of the Rugby site was completed in August 2013, the other re-organisation activities in Head Office and Asia are substantially complete, and the expected benefits will be realised in the second half of this year.

“We expect a strong second half performance built on a solid order book within the interface and displays business and the book-to-bill ratio within the power products business supports a much improved second half performance, which will be further enhanced by our e-commerce platform and a broader commercial offering of power products. Within the iEMS business, we have secured a number of contracts with new customers, albeit at lower margins, reflecting the on-going pricing pressures prevalent in this market.

“The Board remains committed to the growth strategy of investing in our businesses both organically and through acquisition, and will continue to explore opportunities to drive this strategy forward. Whilst trading conditions during 2013 have remained challenging, the Group is now firmly on a path to deliver improved operating performance. The Board is confident of delivering second half profits in line with current expectations, and has an increasing optimism towards 2014 performance and beyond.”

This was posted in Bdaily's Members' News section by Tom Keighley .