15th Mar 2016 09:08
LONDON (Alliance News) - Electronic technologies supplier Stadium Group PLC on Monday said its pretax profit dipped in 2015 as a rise in operating costs offset higher revenue, but it said it has won a GBP5.0 million manufacturing contract.
Stadium shares were up 6.9% to 124.57p on Tuesday morning following the announcement.
Stadium, which makes wireless technology, power supplies and electronic assemblies, said its pretax profit dipped to GBP1.7 million from GBP1.8 million, driven by one-off costs related to acquisitions made in the year and a rise in research and development costs. Stripping out all the one-off costs, pretax profit rose 48% to GBP4.0 million from GBP2.7 million.
Revenue increased 29% to GBP53.9 million from GBP41.7 million, driven primarily by acquisitions. Underlying revenue, stripping out the acquisition contribution, rose 9.1%. Technology products revenue nearly doubled, up to GBP27.0 million from GBP14.0 million, helped by a very strong performance by the wireless business.
Stadium will pay a final dividend of 1.8 pence per share, up from 1.4p, taking its total dividend up to 2.7p from 2.1p, a 29% hike.
"We continue to strengthen our market position as we accelerate the deployment of our strategy as a design-led technologies business and we are now stronger and better positioned for growth with our upgraded technology offering in wireless, power and HMI," said Chairman Nick Brayshaw.
"We are encouraged by the strong order book and pipeline of opportunities across the Group and the early indications are that the strong trading that we experienced in 2015 has continued into 2016," Brayshaw added.
Stadium also said it has won a GBP5.0 million contract to produce insurance telematics units for Trak Global Solutions Ltd, a UK-based telematics company. The products are fitted to vehicles and monitor individual driving performance on behalf of insurers.
By Sam Unsted; [email protected]; @SamUAtAlliance
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