10th Sep 2013 10:47
LONDON (Alliance News) - Stadium Group PLC Tuesday said it made a net loss as a result of increased operating expenses associated with costs of its Rugby site closure and integration of Stadium Industrial Graphic Technologies.
Stadium Group provides niche electronic technologies and manufacturing services to equipment manufacturers in industrial, marine, aviation, transport infrastructure, lighting, medical, automotive, greentech and communication markets.
It said it made a half-year net loss of GBP31,000 for the six months to June 30, compared with a GBP398,000 net profit for the corresponding period the year prior. The results were in line with the company's expectations.
The net loss was attributed to a 20% increase in its operating expenses, which rose to GBP4.0 million from GBP3.3 million.
The acquisition of IGT Industries, which is now known as Stadium IGT, contributed GBP500,000 to the increase in operating expenses, according to the company. IGT was acquired in September 2012 and is achieving its investment targets, according to the company. It produces electronics to help people control machines, with its control panel products.
The company also said it expects to make significant cost savings in the final quarter of the year from August's closure of its Rugby site, which will see the Stadium Group save GBP1 million per year, which in the future should enable the company to return to an "acceptable" profit level.
The Rugby site was closed in February as Stadium Group moved operations to Hartlepool and Asia.
Meanwhile, Stadium Group said its order book is strengthening with sales in line with expectations, while the company is still open to acquisitions.
It is paying a reduced interim dividend of 0.45 pence, down from last half year's 1.05 pence.
Stadium Group shares were Tuesday quoted at 45.00 pence, up 4.50 pence, or 11%.
By Samuel Agini; [email protected]; @samuelagini
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