9th Sep 2014 08:49
LONDON (Alliance News) - Stadium Group PLC Tuesday reiterated its outlook for the full year, with a stronger second half, as it saw pretax profit rise in the half year to end-June.
The electronic technologies company proposed an interim dividend of 0.7 pence, up 56% from 0.45 pence in the previous year.
Stadium posted a pretax profit of GBP799,000 in the six months to June 30, up from GBP42,000 in the same period a year earler, despite seeing revenue decline to GBP19.8 million from GBP21.4 million, as it cut its cost of sales and operating expenses.
Revenue grew in the company's technology products and power products, although this was offset by a decline in its integrated electronic manufacturing services business of 5.5%. Stadium said the decline was the result of market conditions and the company's choice to focus on technology products and exit its lower-margin non-core business.
Gross margins improved to 20.6% from 20.0% as the company shifted its sales mix towards power products and reorganised the integrated electronic manufacturing services business. However, these improvements were partly offset by investments in its power business, on-going price pressures and changing product mix in its interface and displays business.
The company said its strengthening order book and the success of its integrated sales strategy has continued to drive its improved performance going into the second half.
Its key focus for the remainder of the year will be continued investment in its facilities, developing its people and infrastructure. The successful integration of its new acquired Stadium United Wireless Ltd will be key to its strategy, it said.
The new business will require additional manufacturing capacity to support its growth, and Stadium said it was currently exploring options to accommodate this along with the needs of its other technology products businesses.
Shares in Stadium Group were trading up 2.5% at 89.68 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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