Stadium Group plc announces preliminary results for the year ended 31 December 2009. The group is a leading provider of Electronic Manufacturing Services (“EMS”) from two sites in the UK at Hartlepool and Rugby, and from it’s wholly owned subsidiary, Stadium Asia, in China.
Commenting upon the results, Chairman Nick Brayshaw OBE said,
The actions taken by management in the early part of the year to mitigate the effects of the economic downturn placed the business in an ideal position to benefit from recovery, with a reduced operating cost base and the financial resources to fund renewed growth.
New business success achieved in the second half has led to significant out-performance relative to expectations established earlier in the year, and this has continued into 2010. The group had net cash of £0.4m at the year end, and facility headroom exceeding £5m to finance further expansion.
Far East outsourcing remains a compelling strategy for a wide range of companies, and continues to offer a significantly lower cost base. Meanwhile, the proposition for UK manufacturing is improving as customers seek to shorten new product introduction timescales, reduce production lead times and minimise working capital investment. By combining our facilities, we provide our customers with cost effective design and manufacturing solutions which meet international standards of product quality, customer service and intellectual property protection regardless of location.
Current trading is substantially ahead of the same period last year, and the level of enquiries from both existing and target customers is encouraging. Looking further ahead, we are optimistic that new products emanating from emerging market sectors, including green technology, will offer significant potential for organic growth, and lead to further investment and acquisition activity when suitable opportunities arise.”
Revenues of £46.58m (2008: £47.61m)
Profit before taxation and severance costs* of £2.50m (2008: £2.78m)
Underlying earnings per share* of 6.8p (2008: 7.6p)
H2 PBT* up 40% to £1.46m (2009 H1: £1.04m)
H2 earnings per share* up 43% to 4.0p (2009 H1: 2.8p)
Net cash flow from trading activities of £4.83m (2008: £4.21m)
Balance sheet net cash of £0.40m (2008: £2.05m net borrowings)
Proposed final dividend up 11.5% to 1.45 pence per share, total 2.25 pence (2008: 1.30p, 2.55p)