10th Mar 2015 11:15
LONDON (Alliance News) - Stadium Group PLC Tuesday said its pretax profit for the year more than quadrupled despite revenue falling in the period after the company's operating expenses fell, resulting in Stadium Group increasing its total dividend for the year by 75%.
The electronic technologies group reported a pretax profit of GBP1.8 million for the year ended December 31, over quadruple the GBP430,000 reported a year earlier after its operating expenses fell during the year.
Revenue experienced a slight fall in 2014 to GBP41.7 million, compared to GBP42.2 million in 2013. However, Stadium Group recorded a non-recurring cost of sales totalling GBP338,000 in 2013 which did not re-occur in 2014, leading to a gross profit of GBP9.2 million, up from GBP8.7 million.
Stadium said its integrated Electronic Manufacturing Services saw revenue fall during the year, partially offset by strong growth from its Technology Products division.
Total operating expenses fell to GBP6.9 million in 2014 from GBP7.7 million in 2013, leading to an operating profit of GBP2.3 million compared to GBP935,000 a year earlier.
As a result of the improved performance, Stadium Group decided to increase its final dividend to 1.40 pence per share, leading to a total dividend for the year of 2.10 pence, up 75% from the 1.20 pence paid per share in 2013.
"With the group's new divisional operating structure of Technology Products and Integrated EMS, we are now well placed to take advantage of the growth markets in which we operate, in addition to driving further operational efficiencies," said Chairman Nick Brayshaw. "As the business moves forward during the coming year, we anticipate the growing Technology Products division will generate approximately 50% of group revenues."
"The board remains committed to exploring complementary acquisitions that will further enhance Stadium's technology leadership, while simultaneously aligning company resources to actively pursue organic growth opportunities across high growth technology-led markets," added Brayshaw.
Stadium Group shares were up 1.7% to 120.00 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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