11th Mar 2014 13:19
LONDON (Alliance News) - Stadium Group PLC Tuesday lowered its total dividend and said it continues to expect an improved trading performance in 2014, as it posted a decline in pretax profit in 2013.
The electronics company posted a pretax profit of GBP430,000, down from GBP1.8 million in the previous year, as revenue rose to GBP42.4 million, up from GBP41.0 million in 2012. Pretax profit was hit by one off charges of GBP1.2 million in restructuring costs.
The company said it had undergone, "significant organisational change" during 2013, including the restructuring of its Asia operations and the consolidation of its UK integrated electronic manufacturing service business. Stadium closed its Rugby manufacturing site as it focused the UK iEMS business in Hartlepool, and consolidated its Asia operations into mainland China.
Stadium said that the iEMS business operates in a difficult and demanding market, and streamlining the business to take out significant costs had helped it to compete against tough competition.
Although the company has put its acquisition activities on pause whilst it underwent organisation change, it said it has now re-activated the process and remained committed to pursuing suitable acquisition targets.
"We have made a solid start to the new financial year, demonstrating the benefits from our self-help and restructuring activities," said Chairman Nick Brayshaw in a statement.
It posted a total dividend of 1.20 pence, down from 2.80 pence in the previous year.
Shares in Stadium were trading down 4.2% at 69.25 pence Tuesday afternoon.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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